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Memorandum of Understanding Between the Department of Energy and the Nuclear Regulatory CommissionCooperation Regarding The Gas Centrifuge Lead Cascade Facilities at the Portsmouth Gaseous Diffusion Plant Site. I. BACKGROUNDThe Atomic Energy Act of 1954 (the Act), as amended by the Energy Policy Act of 1992 (42 U.S.C. ยง2297 et seq.) created the United States Enrichment Corporation (USEC), a government corporation, for the purpose of managing and operating the uranium enrichment enterprise owned and previously operated by the Department of Energy (DOE). USEC subsequently leased from DOE, portions of the Portsmouth Gaseous Diffusion Plant (Portsmouth Site) and the Paducah Gaseous Diffusion Plant (Paducah Site) which related to the gaseous diffusion plant (GDP) process. The framework for DOE's authority to regulate nuclear safety, safeguards and security at the GDP sites was contained in the Regulatory Oversight Agreement (ROA).(1) The Energy Policy Act of 1992 also required the Nuclear Regulatory Commission (NRC) to certify USEC's operation of the GDPs to ensure compliance with its safety, safeguards and security requirements. DOE agreed to retain oversight of the plants until the NRC finished its certification process and was ready to assume jurisdiction. In November 1996, NRC issued initial certificates of compliance for the plants. The certificates provided for a transition period before NRC assumed regulatory authority to allow USEC to complete actions such as procedural revisions and training. DOE continued regulatory oversight during this transition period. Transition to NRC regulatory oversight occurred on March 3, 1997. By agreement dated October 10, 1995, DOE and USEC agreed that the DOE ROA will continue to govern leased uncertified facilities or activities after NRC certification.
USEC Inc.'s design will use the advantages of DOE's design while incorporating key technological advancements and cost reductions. UT-Battelle LLC and USEC Inc. will conduct further centrifuge development work at DOE's East Tennessee Technology Park (ETTP) in Oak Ridge, TN, where centrifuge test facilities already exist. USEC Inc. announced in December 2002 that it will site its American Centrifuge Lead Cascade Facility (also referred to as the "Lead Cascade") centrifuge uranium enrichment test and demonstration facility at DOE's Portsmouth Site. USEC Inc. submitted a 10 CFR Part 70 license application to the NRC in February 2003 to possess and use a limited quantity of special nuclear material in the American Centrifuge Demonstration Facility. In January 2004, the NRC completed its review of the application and issued its Environmental Assessment with a "Finding Of No Significant Impact" and Safety Evaluation Report. On February 24, 2004, the NRC issued a license for the Lead Cascade Facility after DOE approved the lease on February 17, 2004, allowing USEC Inc. to refurbish and subsequently operate the facility in accordance with its license application. The Lead Cascade will consist of up to 240 full-scale centrifuge machines in a closed cycle, enriching uranium within the process, while only withdrawing small quantities of low-enriched uranium for sampling purposes. The purpose of the Lead Cascade is to provide updated cost, schedule, and performance data to reduce the financial risks of eventually building a $1 billion to $1.5 billion commercial enrichment plant. USEC has leased portions of DOE's gas centrifuge enrichment plant (GCEP) facilities at the Portsmouth Site. Following USEC's GCEP cleanup work, USEC Inc. will sublease from USEC these facilities for deploying the Lead Cascade. As described in USEC Inc.'s license application, a portion of the leased-GCEP Facilities will be regulated by NRC. The remaining portion of the leased-GCEP Facilities will be regulated by DOE. II. DEFINITIONSWhen utilized in this document, the following terms shall have the meanings indicated below. "Lead Cascade Facilities" or "Lead Cascade" shall mean the USEC Inc. operated test and demonstration facility located at the Portsmouth Site. It includes the gas centrifuge machines and associated support equipment and facilities as described by USEC Inc.'s License Application for the American Centrifuge Lead Cascade Facility (as amended)(3) "Leased Facilities" or "Leased Premises" shall mean the real property located at the Portsmouth Site leased to USEC as described in the Lease between DOE and USEC.(4) "Transition" shall mean the transition from DOE regulatory oversight to NRC regulatory oversight for nuclear safety and appropriate aspects of safeguards and security of the Lead Cascade Facilities and activities. Transition will occur following NRC's pre-operational inspections and regulatory compliance reviews but prior to the introduction of uranium hexafluoride (UF6) into the Lead Cascade Facilities unless NRC and DOE mutually agree to a different transition date. It is recognized that there may be a separate transition date for regulatory oversight responsibilities of activities performed by a particular USEC Inc. subcontractor/vendor/partner facility than the transition date agreed upon by DOE and NRC for other activities. "GCEP Facilities" shall mean the gas centrifuge enrichment plant facilities previously constructed and utilized by DOE at the Portsmouth Site. III. PURPOSE AND SCOPEIt is the intent of NRC and DOE to work in concert to distinguish Lead Cascade activities under DOE oversight from those under NRC oversight. Accordingly, the purposes of this Memorandum of Understanding (MOU) are as follows:
Nothing in this MOU restricts or otherwise limits the authority of either NRC or DOE to exercise its full regulatory authority, including both inspection and enforcement authority. IV. RESPONSIBILITIESA. Upon leasing the Lead Cascade Facilities to USEC and prior to the transition to NRC regulation:
B. Following transition to NRC regulation, NRC will be solely responsible for all regulatory oversight of the Lead Cascade Facility including conducting nuclear safety, safeguards, and security reviews and inspections of the Lead Cascade Facilities and activities other than for activities covered under IV.D. After transition, the NRC may observe activities in the remaining GCEP facilities that could adversely impact the safety and/or safeguards condition of the Lead Cascade Facility. NRC will serve as the CSA for USEC Inc.'s subcontractor/vendor/partner facilities after transition. DOE may participate in NRC's regulatory oversight activities for such subcontractor/vendor/partner facilities. C. Upon termination of the 10 CFR Part 70 license (including any amendments or renewals), DOE will resume its responsibilities for conducting nuclear safety, safeguards, and security reviews and inspections of the Lead Cascade Facilities and activities, except for those portions that become licensed as part of USEC Inc.'s commercial gas centrifuge enrichment plant. D. Access Authorizations and CSA
V. INTERFACES BETWEEN DOE AND NRCA. Exchange of Information and Technical Staff Support 1. DOE and NRC agree to make available to each other information and technical support concerning matters of common interest.(5) DOE and NRC agree to meet, as necessary, at mutually agreeable times and locations to exchange information on matters of common interest. 2. DOE agrees to notify NRC in a timely manner of the following:
3. NRC agrees to notify DOE in a timely manner of the following:
4. NRC and DOE will share all observation, audit, assessment, and inspection reports on GCEP Facilities and Lead Cascade Facilities addressed in this MOU. 5. NRC and DOE will inform each other of enforcement actions involving the Lead Cascade Facilities and activities. 6. NRC and DOE agree to mutually develop, maintain, and share a Lead Cascade Facility drawing which reflects each agency's regulatory jurisdiction following transition within the Lead Cascade Facilities. The initial development of this document and any subsequent revisions will be mutually agreed upon by both agencies. 7. Each agency recognizes that it is responsible for the protection, control, and accounting of National Security Information, Restricted Data, Formerly Restricted Data, and Sensitive information [e.g. Proprietary Information, Safeguards Information (SGI), Official Use Only (OUO), Export Control Information (ECI) and Unclassified Controlled Nuclear Information (UCNI)] used or otherwise furnished in connection with this MOU in accordance with its established requirements and procedures. B. Emergency Response
C. Referrals
D. Coordination
E. The transition date will be mutually agreed upon by NRC and DOE following notice to and discussion with USEC/USEC Inc. It is recognized that there may be a separate transition date for regulatory oversight responsibilities of activities performed by a particular USEC Inc. subcontractor/vendor/partner facility than the transition date agreed upon by DOE and NRC for other activities. VI. POINTS OF CONTACTA. The principal senior management contacts for this MOU will be DOE's Director of Nuclear Fuel Security and Uranium Technology, Oak Ridge Operations Office, and the Director, Division of Fuel Cycle Safety and Safeguards, Office of Nuclear Material Safety and Safeguards, NRC. These individuals may designate appropriate staff representatives for the purpose of administering this MOU. B. Identification of these contacts is not intended to restrict communication between DOE and NRC staff members on technical and other day-to-day activities. VII. RESOLUTION OF DISPUTESA. If disagreements or conflicts about matters within the scope of this MOU arise, DOE and NRC will work together to resolve these differences. B. Resolution of differences between DOE staff and NRC staff will be the initial responsibility of the DOE Regulatory Oversight Manager in Oak Ridge Operations, and the chief of the responsible branch within the NRC. C. If the issue can not be resolved at the staff level, the NRC and DOE agree to refer the matter within thirty (30) days to the Director of Nuclear Fuel Security and Uranium Technology, Oak Ridge Operations Office, and the Director, Division of Fuel Cycle Safety and Safeguards, Office of Nuclear Material Safety and Safeguards, NRC. VIII. EFFECTIVE DATE AND MODIFICATIONThis MOU shall become effective upon signing by the DOE Director of the Office of Nuclear Fuel Security and Uranium Technology, Oak Ridge Operations (DOE), and the Director, Division of Fuel Cycle Safety and Safeguards, Office of Nuclear Material Safety and Safeguards (NRC). It will be subject to periodic reviews and may be amended or modified upon written agreement by the parties. This MOU may be terminated by mutual agreement or by written notice from either party by submittal six (6) months in advance of termination. IX. SEPARABILITYIf any provision(s) of this MOU, or the application of any provision(s) to any person or circumstances, is (are) held invalid, the remainder of this MOU and the application of such provision(s) to other persons or circumstances shall not be affected.
1. Exhibit D of the Lease Agreement between the U.S. Department of Energy and the United States Enrichment Corporation; dated July 1, 1993 2. Agreement between the U.S. Department of Energy ("DOE") and USEC Inc.; dated June 17, 2002 3. License Application; American Centrifuge Lead Cascade Facility at USEC's Facilities in Piketon, Ohio; Document No. LA-2605-0001; dated February 2003 4. Exhibit A (as amended) to the Lease Agreement between the Department of Energy and United States Enrichment Corporation, dated July 1, 1993 5. Matters of common interest concern the GCEP Facility and Lead Cascade Facility areas, railways, roadways, structures, systems, components, hazards, activities, tenant mix, population, etc. which can impact safety, safeguards or security risks under DOE or NRC jurisdiction during normal, off-normal, or emergency conditions |
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