[APPENDIX C]{.underline}

FUEL CYCLE RESIDENT INSPECTION PROGRAM

[General Policy]{.underline}.

Resident inspectors are assigned to the High Enriched Uranium (HEU)
Facilities and the operating Gaseous Diffusion Plants (GDPs), and
provide an onsite NRC presence for direct observation and verification
of licensees' ongoing activities. The responsibilities of resident
inspectors include: (1) completing core and supplemental inspections,
(2) maintaining cognizance of major activities and current plant status,
and (3) event response and evaluation. The greater part of initial
event‑related inspection effort will be performed by the resident
inspectors and may be augmented by other inspectors depending on the
type and significance of the event. Regional managers will decide when
normal inspection activities will be resumed by those involved with
inspecting events. The resident inspectors should also be aware of
planned NRC inspections from both Headquarters and the Region.

[Inspection Requirements]{.underline}.

It is this program=s intent that the resident inspectors use the
Inspection Procedures (IPs) as guidance during the inspection. The
resident inspectors must review the specific requirements and
commitments contained in the individual plant licenses, license
applications, Integrated Safety Analyses (ISAs), Technical Safety
Requirements, and Safety Analysis Reports (SARs), as applicable. The
scope of an inspection in a particular functional area is not limited by
the IP line items, but should include risk-significant safety controls
and requirements contained in the associated safety bases documentation.
It is recognized that a typical inspection can cover only a sample of
the requirements and activities being conducted. Therefore, the resident
inspectors are expected to exercise professional judgment to concentrate
on those activities with the highest safety and safeguards risk. When a
potential safety or safeguards issue is identified, the resident
inspectors should focus on identification of the root cause(s) and the
failures in the management control systems that allowed the problem to
occur.

[Resident Inspector Activities]{.underline}.

In-depth examinations of specialty areas, such as radiological controls,
emergency preparedness, and physical security, will continue to be
performed by Headquarters and Region-based specialists. The resident
inspectors are expected to be generalists and should concentrate on
implementation of the safety-basis commitments and various management
control systems, such as the conduct of operations, problem
identification and resolution, and configuration management systems.
Resident inspectors will primarily use the resident inspector procedures
for guidance and may select from among the fuel facility IPs for
additional guidance in the area being examined. The resident inspectors
are also expected to keep informed of site performance issues,
potentially significant events, and other significant activities. Most
inspections should emphasize the observation and evaluation of ongoing
facility operations and supporting activities affecting the safety or
safeguards function of facility structures, systems or components that
are the most risk-significant

.

[Resident Inspector Policy]{.underline}.

The following is the general policy on the extent of resident inspector
coverage:

a\. For sites staffed with two qualified resident inspectors, at least
one qualified resident inspector or qualified headquarters or
region-based alternate should provide site coverage during normal site
working hours (Monday through Friday) such that there are no more than
three consecutive normal work days in which there is no coverage (n.b.,
Friday-Tuesday are three consecutive working days). It is expected that
gaps in excess of two days with no coverage should not occur more
frequently than a few times a year. For sites staffed with only a single
qualified resident inspector, at least one qualified resident inspector
or qualified region-based alternate should provide site coverage during
normal site working hours (Monday through Friday) such that there are no
more than six consecutive normal work days in which there is no
coverage. Alternate resident inspectors need not be qualified resident
inspectors. In addition, in some circumstances and as approved by
Regional management, technical reviewers may provide NRC site presence
after a review of site event notification and emergency response
procedures and the NRC resident inspector=s role.

b\. The Regional Administrator will be notified when the site inspector
coverage can not be met. All exceptions will be highlighted in the
quarterly update of the regional operating plan.

c\. Resident inspectors should devote about 10% of their normally
scheduled onsite time to inspection of backshift activities. In this
context, backshift is defined to mean all times other than day shift
(Monday-Friday) hours on non-holidays. Backshift coverage should be
primarily focused on direct observation of in-plant or control room
activities. As a subset of backshift time, resident inspectors should
devote about 5% of normally scheduled onsite time to Adeep backshift,@
weekends, and holidays. The week night hours between 10:00 p.m. and 5:00
a.m. are referred to as Adeep@ backshift coverage, and may only last for
a couple of hours or as directed by line management. Weekend inspections
should occur at least once a month.

Inspectors should be sensitive to and avoid being predictable in
scheduling their backshift and deep backshift coverage. In order to
maximize the benefit of deep backshift coverage, inspectors should not
develop a predictable pattern. Effort should be made to spread the deep
backshift coverage over a variety of days and working conditions
(outage, normal operations, weekends, nights \[including 10 p.m. to 5
a.m.\], etc.).

END

ATTACHMENT 1

[Revision History for IMC 2600, Appendix C]{.underline}

+--------+--------+-----------------------+-----+-------+-------------+
| Comm   | Issue  | Description of Change | Tr  | Tra   | Comment     |
| itment | Date   |                       | ain | ining | Resolution  |
| Tr     |        |                       | ing | Compl | Accession   |
| acking |        |                       | Nee | etion | Number      |
| Number |        |                       | ded | Date  |             |
+--------+--------+-----------------------+-----+-------+-------------+
| N/A    | 04     | Revised to            | N   | N/A   | ML070610173 |
|        | /26/07 | incorporate the new   | one |       |             |
|        |        | inspection procedures |     |       |             |
|        | CN-    | developed to address  |     |       |             |
|        | 07-014 | changes to 10 CFR     |     |       |             |
|        |        | Part 70 and to        |     |       |             |
|        |        | reflect enhancements  |     |       |             |
|        |        | made to the fuel      |     |       |             |
|        |        | facility inspection   |     |       |             |
|        |        | program.              |     |       |             |
+--------+--------+-----------------------+-----+-------+-------------+
| N/A    | 08     | Remove AOFFICIAL USE  | N   | N/A   | ML072070428 |
|        | /15/07 | ONLY - SENSITIVE      | one |       |             |
|        |        | INTERNAL INFORMATION@ |     |       |             |
|        | CN     | designation from      |     |       |             |
|        | 07-025 | entire manual chapter |     |       |             |
|        |        | to make publicly      |     |       |             |
|        |        | available.            |     |       |             |
+--------+--------+-----------------------+-----+-------+-------------+
|        |        |                       |     |       |             |
+--------+--------+-----------------------+-----+-------+-------------+
|        |        |                       |     |       |             |
+--------+--------+-----------------------+-----+-------+-------------+