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JAN 0 6 2004

TRE CYOF ZO.Od OE

HOBBS, NEWMEXICO

[J71177SS 300 North Turner Hobbs, New Mexica 824D4303

DEPAR7TWET (505) 397-9315 * FAX (505) 397-9370 0 twoomertbobbmnm.org

December 30, 2003

Mr. John Shaw. PE

Projecl Director

Lockwood Greene Engineers

P.O. Box 491

Sparanburg, SC 29304

RE: NEF Memosandum Of Undestanding-November 14, 2003

Dear Mr. Shaw:

This letter is in response toyourNovember 14,2003 letter regarding the supply ofpotable water from the City of

Hob, New Mrxico to the proposed National Enrichment Facility (NEF) to be located three miles castofEunicke

New Mexico.

After ow recent discussions regaling your water supply needs and a detailed aalysis ofpipeline alternatives, we

arc proposing to modify the conditions listed in your original letter. Please review the following revised

conditions and determine if they are acceptable.

We cannot guartrc that the City orlobbs potable water will not require additional b'utn cnt before ii is

acceptable for use in your facilities. It is our understanding that you ae now testing our water to

detmine if the xisting waer quality m=ts your needs. Ifyou dctermine that our existingwater quality

mectsyour needswe greeto make potablewateravailable toNEFform plantoperating lifcof30years

with an cstimated initial use in 2007.

* Water can besupplied at an avcragem te,ra portion theruof, in the amnowtof 65,000 gpd (45 gpm) and

maintain a minimum water pressure of 890 psig at the NEF facility site. In fact, our calculations show

the expected water pressure mt NEF to be 130-150 psig (at 45 gpm). Consequcntly, you nzy desire to

install a pressurr-reducing valve on the NEF site to reducc those presures for your use.

* To provide a waer storage tank refill rafte of 566 gpm (250,000 gallo0sM hours + 45 gpm) for proposed

fue flow, tbc expected pressure at your site during our peak day use rate would be pproximlscy 42 psig.

lbe expected pressure at your site during our"wo't case" peak houruse nre would be approximalely 23

psig. Forthisryasonwerequest thatyou scheduleany"onr-cmnergeny" water tank refilling processes

during non-peak times, prefetably from II 00 pm to 5:00 am.

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

connected. with the undemanding that the City of Hobbs will maintain the capacity and prcssure

requirements as noted abovc.

* We have determined that it is not femible to use the existing 14-inch AC water line nmiing between

Hobbs and Nadine at the frst portion ofa trais sion line to supply potable watcr to the NF site. This

existing AC line does not have the strength or structunral integrity to withstand the surges and water

harnmrs expected to be experienced in this application.

5

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* As an alternative. we propose that the existing 14-inch AC pipeline be sliplined with a minimum joint

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

be increased to a 12 inch. DR-I I (DIPS) HIDPE pipe to handle the increased pressures experienced in this

downstream portion of the line.

* With the proposed pipeline types, sizes and configuration, there is no need fbw a pump station to be

constructed in Nadine. The cost of installingthe UDPE pipe to ourspecifications fiomn Hobbs. from the

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

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

* The City of Hobbswill be responsible for obaining permission 1o pLacc the pipeline in the highway rightof-way along with the costs for operating and nwintaining the new potable water linc from Hobbs to the

property boundawy of the NEF site.

* The City of Hobbs has no objections to NEF working with the City of Eunice lo secure a separale potable

water line 1ron Eunice to the NEF site providing that the Eunice line remains completely independent

from the Hobbs supply line up to the NEF waler distribution system. NEF shall be responsible for

assuring that there is no possibility ofa croms connection between the two systems and the installalton and

mnaintcnanme of properly sized back flow prevention devices for each systemPliase mview the above conditions and to see if thy sre acceptable. I fyou cept the terms and conditions of

this agreement. pleasc affix your original signature in the spaces below and return one original lo mc for our

project records.

For your information, if you have a desire to rmconsidcr the use of eMuent water in lieu of using potabic

waler, we would be happy to discuss this with you further.

If you have any questions or corrmnents. please contact mc. Thank you for your help and consideration as we

continue to work closely with you on this project.

Sincerely.

The City of Hobbs, New Mexico Lockwood Greene. Engineering & Construction

-dw ' % S g , JAN 2 C 21JU4

m WoomerP.E.

Director of Utilities jcct Director

(On behalf or the National Enrichment Facility)

pta 2QO.
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LOCKWOOD GREENE

Xi * ENGINEERING ERING&CONS & CONSTRUCTIONPotOfc *00 Rlitt iaton\5i~l~ Drive (29.303) x49

111111OSpairtmillurg, SC 29304-0491

* dephicne8 -4.578.2(XW

Frw.dtnhL'v #¢6J.599.6flfl

21 January 2004

Honorable James Brown

Mayor Eunice, New Mexico

City of Eunice, New Mexico

PO Box 147

1106 Avenue J

Eunice, NM 88231

Dear Mayor Brown:

Subject: National Enrichment Facility (NEF) Memorandum of Understanding

The National Enrichment Facility is proceeding with the preliminary siting and design activities

in Lea County New, Mexico, and is requesting your agreement with the decision to make a

potable water connection to the City of Eunice New Mexico. The following information

represents our discussions held in your offices on 060ctober2003 and the current understanding

of the potable water needs and is subject to change during the projects detailed design phase.

By acceptance of this agreement it is accepted and understood that:

* Eunice potable water, without additional treatment, is available for use by the NEF for

an operating plant life of 30 years with an estimated initial use in 2007.

* Water can be supplied at an average rate, or a portion thereof, in the amount of

65,000gpd and maintain 80-90 psig water pressure at the NEF site. Peak use rates may

exceed the average rate.

* The City of Eunice can integrate this new potable water supply to supply new city

users, provided the capacity and pressure requirements specified above can be

maintained at the NEF.

* It is acceptable to connect to the existing 16" PVC line running along Highway 18

Business north of Eunice approximately at the Truck Bypass, to locate a pumping

station (location to be determined) and to connect a 10" or smaller HDPE line to the

NEF.

* The costs for the pumping station and installation of the new 10" or smaller HDPE line

approximately 7 miles from the connection point to the NEF site (Truck route, Hwy 234)

will be the responsibility of the NEF.

* If necessary, the City of Eunice will be the responsible agent for the installation of the

water line and the acquisition of any easements with all costs assumed by NEF.

* The City of Eunice will be responsible for all costs of operating and maintaining the new

water line and pump station.

• The water use fee charged to NEF by the City will include all costs for operation and

maintenance of the water supply system.

Jls:p:U0W9 outgoing correspondence'Ietter of agreernent water eunice-revO.doc

040-018511.01
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* Honorable James Brown

21 January 2004

Page 2 of 2

* As a matter of information, the NEF may also seek to secure a separately run potable

water line run from the City of Hobbs New Mexico. The line from Hobbs will remain

independent from the Eunice supply line up to the NEF plant water distribution system.

As confirmation of your acceptance with this agreement, please affix your original signature in

the spaces below and return one original to me for the project records.

If you have further questions or comments, please contact me. Thank you for your help and we

look forward to working closely with you on this project.

Sincere regards,

LOCKWOOD GREENE

Jo L. Shaw PE

Project Director

Lockwood Greene Engineers

(on Behalf of the National Enrichment Facility)

CITYOF EUNICE NEW MEXICO

onorable James Brown

Mayor Eunice, New Mexico

cc: Rod Krich - LES

Project Files 20.17,20.09

Ron Abousleman, City Manager Eunice NM

jIs:p;%2009 outgoing correspondenceJefter of agreement water eunlcejev0.doc

040-018511 .OIFN:20.09