Louisiana Energy Services, L.P.

('LES")

Exhibits

NIRS/PC Contention EC-2

Impact Upon Water Supplies

January 7, 2005
National Enrichment Facility Environmental Report,

Sections 3.3, 3.4, and 4.4 (See Exhibit 1)
'Lockwood Greene 5/11/2004 4:18 PAGE 2/3 RightFax

JAN 0 6 2004

7THE CI7YOF zo2os o i6

HOBBS, NEWMEKIC0O

V77Lfri 300 North Tarmer Ilobbs, Nrw M nko 832404302

DEPARTMENT (505)397-9315 * FAX (505)397-9370 0 trwroz bobbsnm.org

December 30,2003

Mr. John Shaw. P.E

Project Diredtor

Lockwood Grecne Engineers

P.O. Box 491

Spananburg. SC 29304

RE. NEF Memorandum OrUnde tanding -November 14,2003

Dear Mr. Shaw:

This Itler is in response toyour November 14,2003 lefter regarding the supply of potable water from the City of

Hobbs, New Mexico to the proposed National Enrichment Facility (NEF) to be located thre miles castofEun;cc,

New Mexico.

After our recent discussions regarding your water supply needs and a detailed analysis of pipeline alternatives, we ) are proposing to modify the.conditions listed in your original letter. Please review the following revised

conditions and determine if they am acceptablc.

0 Wc cannot guarantec thal the City oflobbs potable wacr will not require additinl tratment before it is

acceptable for uBc in your facilities. It is our understanding that you are now testing our waler to

determine if the existing water quality meets your needs. If you detemine that our existing waler quality

meetsyour needs, we agree to make potable water available toNEF for a plant operating life of 30yeas

with an csirnated initial use in 20017.

* Weter can be supplied at an average rate, ora portion thereof, in the amount of 65,000 gpd (45 gpm) and

maintain a minimur water presswu of 8090 psig at he NEF failitysite. In fact, our calculations show,

the expected water pressure at NEF to be 130-150 psig (at 45 gpm). Consequently, you may desirc to

install a pressur-reducing valve on the NEF site to roduce those pressures for your use.

* To provide awater storage tank refill rate of 566 gpr (250.000 galkomsM hours + 45 gpm) for proposed

fir flow, the expected pressure at your site during our peak day use rate would be approximately 42 psig.

Ile expected pessure at your site during our "worst case" peak hour use rate would be approximately 23

psig. Forthisreasonwerequest thatyouschedule any oon-cergnCy"Water tank refillingprocesses

during non-peak times, prcfieraby from 11:00 pm to 5:00 am.

* The new water transmission line will be designed to allow new users in the vicinity of the line to be

connected. with the understanding that the City of Hobbs will maintain thc capacity and pressure

rcquirements as noted above.

* We have determined that it is not feasible to use the existing 14-inch AC waler line running between

Hobbs and Nadine as the first portion ofa transmission line to supply potable water to theNEFsh- llis

existmg AC line does not have the strngth or structural integrity to withstand the surges and water

hammers exp&ted to be experienced in this application.

LES-01163

Pov I of2

LES Exhibit 22
Lockwood Greene 5/11/2004 4:18 PAGE 3/3 RightFax

I

* As an shatrnative. we propose that the existing 14-inch AC pipeline be slip-lined with a minimum joint

bead. 12 inch DR-13.5 (IPS) HDPE pipe. As the pipe reaches Nadine, the wall thickness would need to

beincreased toa 12 inch. DR-I I (DIPS) HDPEpipeto handle ahe inreascd pressuresexperienced in this

downstream portion of the line.

• With the proposed pipeline types sizes and configuration, them is no need rfo pump station to be

constructed in Nadine. The cost of installingtheTIDPE pipe to our specifications from Hobbs, from the

intersection of Stanolind Road/Dal Paso Street to the NEF she. is to be the responsibility of NEF. The

water use fees will include all costs for operation and maintenance of the water supply system.

* The City of Hobbswill be responsible lbrobtaining permission to place thepipeline in the highway righto-way along with the costs ibroperating and maintaining the new potable watcr line from Hobbs to the

property boundary of the NEF site.

• Th City of Hobbs has no bjections to NEF working with the City of Eunice to secure a separate potable

water line fmom Eunice to the NEF site providing that the Eunice line remains completely independent

ftin the Hobbs supply line up to the NEF water distribution system. NEF shall be responsible for

assuring that there is no possibility ofa cras connection between the two systems arnd the installation and

mnaintennnc of propcrly sized beck flow prcntion devices for each system

Please rcvkw the bove conditions and to se if they are acceptable. Ifyou acce tems and conditions of

this agreement, please affix your original signature in the spaces below and return one original o me for our

project records.

For your inrornationm if you have a desire to reconsidcr the use of cMucrnt water in lieu orusing potable

waler. we would be happy to discuss this with you futher.

Ifyou have any qucstions oreornment please co>nact me. 7hank you for your help and consideration as we

continue to work closely with you on this projecL

Sincerely.

The City of Hobbs, New Mexico

Director of Utilities

Lockwood Greene. Engineering & Construction

* L JAN .2 0O ktIU

J#LShaw. P.E.

Project Director

(On behalforthe National Enrichment Facility)

P'v' -LES-O 164