[SOE LETTERHEAD]

June 24, 2002

The Honorable John T. Conway
Chairman
Defense Nuclear Facilities Safety Board
625 Indiana Avenue, NW
Washington, D.C. 20004

Dear Mr. Chairman:

This is in response to your March 21, 2002, letter and to provide the Department of Energy's (Department) future plans for the utilization of processing capabilities at the Savannah River Site (SRS).

I would like to thank the Defense Nuclear Facilities Safety Board for the work it has done in helping us better focus on Canyon issues at SRS. Over the past several years, the Department's stabilization and disposition program has evolved through changing mission needs, as well as change in strategy made possible by the opening and utilization of disposal sites. The Department is committed to having the capability to stabilize and disposition materials in our current inventory and future materials that will be added as cleanup efforts continue. We believe the best path forward is through utilization of existing facilities, such as the H-Canyon and HB-Line at the SRS, and by establishing new capabilities, such as the Mixed-Oxide Fuel Fabrication Facility and the Pit Disassembly and Conversion Facility.

The Department has spent several years evaluating mission need and has not identified materials specifically requiring the unique chemical separation capabilities of the F-Canyon facility at SRS (i.e., plutonium/uranium extraction (PUREX) process). I believe that with capital enhancements to the HB-Line plutonium and neptunium processing facility to permit the processing of plutonium residues and oxides containing chloride, silica, etc; use of H-Canyon for processing plutonium, enriched uranium, and neptunium; and in conjunction with the future National Nonproliferation facilities, we will meet the disposition needs for weapons-grade plutonium, spent nuclear fuel, and other nuclear materials throughout this decade. The Department is evaluating options for final disposition of non-weapons-grade plutonium, which is not suitable for direct disposal, and we also continue to evaluate disposition methodologies for spent nuclear fuel beyond this decade. However, in the interim, these materials will be stabilized near-term and stored in a safe configuration as committed to in our Recommendation 2000-1 implementation plans. Enclosed is a summary of the materials to be processed at the SRS as well as plans for management to include disposition of other materials across the Department of Energy complex as discussed with your staff on May 2, 2002.

The Department has concluded that while many of these materials could be processed in the F-Canyon facilities, there is not a compelling technical, regulatory, or economic reason to do so, and there are other cost-effective options available. Continuing to operate both F- and H-Canyon facilities would significantly increase costs with only marginal impacts on stabilization or disposition schedules. These materials are being actively and safely managed across the complex. Surplus non-weapon plutonium is being stabilized and packaged for long-term storage. The Department is aggressively pursuing the disposition of surplus plutonium as well as developing alternative means for the management of spent nuclear fuels and other materials. Those presenting potential risk to worker and public safety and health and the environment will be processed or packaged to reduce or eliminate such risks. With these actions, a measured approach to materials disposition can be pursued simultaneous with our cleanup, national security, and other missions.

Since 1954, the F-Canyon facility has served its mission well supporting both the defense and environmental cleanup missions. With the suspension and deactivation of this facility, the Department can focus resources on meeting the needs for future disposition and accelerated cleanup activities. Previous near-term savings associated with F-Canyon PUREX suspension were estimated to be $10-20 million per year. This presumed that F-Canyon deactivation would be completed in 2012.

The Department identified in Revision 1 of the 2000-l Implementation Plan stabilization and storage commitments requiring operation of the F-Canyon facility structure through at least 2008, specifically: (1) the americium and curium (Am-Cm) solution would be vitrified into small glass logs by December 2005; (2) the stabilization and packaging of the plutonium inventory within the facility structure would be completed by June 2008; and (3) the Rocky Flats metal recasting mission would be completed by March 2006. Since then, the SRS has accelerated the disposition of the Am-Cm solution to March 2003, accelerated DOE-STD-3013 stabilization and packaging of the plutonium to December 2005, and canceled the need for recasting the Rocky Flats metal.

SRS has proposed accelerating the de-inventory and deactivation of the F-Canyon facility by six years to 2006, enabling savings on the order of $50 million per year beginning in fiscal year 2005 and increasing to more than $100 million per year beginning in fiscal year 2007. In order to achieve these savings, SRS must initiate aggressive efforts to reduce F-Canyon operations beginning this year.

These resources will be redirected to high-risk reduction and stabilization and cleanup activities, including that of the H-Canyon uranium, plutonium, and spent nuclear fuel missions.

In conclusion, the National Nuclear Security Administration and the Office of Environmental Management have reviewed their future needs for facility capabilities and have concluded that the operation of the F-Canyon facility is not required for current or future stabilization, disposition, or Defense Programs needs. In light of this, the SRS is proceeding with the F-Canyon suspension plan recognizing that departmental authorization is required prior to de-energizing equipment in September of this year. The Department would like to conclude on this matter expeditiously and move forward, working with you and your staff, on our future disposition capabilities.

If you have any further questions or desire further discussion on this matter, please contact me or Ms. Jessie Hill Roberson, Assistant Secretary for Environmental Management, at (202) 586-7709.

Sincerely,

Spencer Abraham

Enclosure