March 21, 2007 

 MEMORANDUM OF UNDERSTANDING 

BETWEEN THE 

DEPARTMENT OF ENERGY 

AND THE 

NUCLEAR REGULATORY COMMISSION 

COOPERATION REGARDING THE 

AMERICAN CENTRIFUGE PLANT 

IN PIKETON, OHIO 

I. BACKGROUND 

The Atomic Energy Act of 1954 (the Act), as amended by the Energy Policy Act of 1992 (42 U.S.C. 

'2297 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 in Piketon, Ohio (Portsmouth Site) and 

the Paducah Gaseous Diffusion Plant in Paducah, Kentucky (Paducah Site) which use the 

gaseous diffusion technology and process method of uranium enrichment. The framework for 

DOE's authority to regulate nuclear safety, safeguards and security at the gaseous diffusion plant 

(GDP) sites was contained in the Regulatory Oversight Agreement (ROA), which was 

incorporated by reference into the lease agreement.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 NRC’s 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 GDPs. 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. 

On March 10, 1995, DOE’s Office of Safeguards and Security signed an agreement with the 

NRC’s Division of Security defining security responsibilities at the Paducah and Portsmouth GDPs. 

By agreement between DOE and USEC dated October 10, 1995, the DOE ROA has continued to 

govern GDP facilities and activities not covered by the NRC’s November 1996 certificates of 

compliance. On March 30, 1998, DOE and USEC modified an existing agreement entitled "USEC 

and DOE Resolution of Shared Site Issues at the Gaseous Diffusion Plants (Revision 1)" which 

allows for a mutual coordination of activities at the GDP sites. 

In 1998, consistent with the USEC Privatization Act (42 U.S.C. §2297h (1) – (13)), USEC was 

privatized, resulting in the creation of USEC Inc. (parent company of USEC). In June 2002, USEC 

 1

Exhibit D of the Lease Agreement between the U.S. Department of Energy and the United States Enrichment 

Corporation; dated July 1, 1993 
March 21, 2007

- 2 -

Inc. and DOE signed an agreement2 whereby USEC Inc. made long-term commitments that are 

intended to ensure stability for the domestic uranium enrichment industry and provide a continued, 

reliable fuel source for the world's nuclear reactors. As part of this June 2002 Agreement, USEC 

Inc. committed to pursuing advanced uranium enrichment technology. In September 2002, USEC 

Inc. signed an amended Cooperative Research and Development Agreement (CRADA) with 

UT-Battelle LLC. The purpose of the DOE-approved CRADA is to expand cooperative efforts to 

deploy proven U.S. gas centrifuge uranium enrichment technology as an alternative to the 

gaseous diffusion method of uranium enrichment currently utilized at the GDPs. USEC Inc.'s 

design uses the advantages of DOE's design while incorporating key technological advancements 

and cost reductions. Under the CRADA, UT-Battelle LLC and USEC Inc. are conducting further 

centrifuge development work at DOE's East Tennessee Technology Park (ETTP) in Oak Ridge, 

TN, where DOE centrifuge test facilities already exist. 

USEC Inc. announced in December 2002 that it would site its American Centrifuge Lead Cascade 

Facility (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 Lead 

Cascade. 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 17, 2004, DOE approved a lease of certain areas and facilities at Portsmouth to 

USEC for activities related to the Lead Cascade. On February 24, 2004, the NRC issued a license 

for the Lead Cascade. Upon USEC’s subsequent sublease to USEC Inc. of the Lead Cascade 

facilities, USEC Inc. was authorized to refurbish and subsequently operate the Lead Cascade in 

accordance with its NRC-issued license. 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 commercial enrichment plant consisting of thousands of centrifuge 

machines. 

On March 24, 2004, the NRC and DOE signed a Memorandum of Understanding (MOU) which 

delineates each agency’s roles and responsibilities concerning regulatory oversight of the Lead 

Cascade to ensure adequate oversight and to avoid dual regulation. The MOU for the Lead 

Cascade also ensures that USEC’s and USEC Inc.’ s activities, to be conducted during centrifuge 

disassembly/assembly and operational phases of the Lead Cascade, have regulatory continuity 

and are safe and secure. Under the MOU for the Lead Cascade, DOE would initially provide 

regulatory oversight for nuclear safety, safeguards and security. During this time, NRC’s oversight 

responsibility would be limited to determining the adequacy of the management measures, 

including quality control applied to items relied on for safety (IROFS), and other USEC Inc. 

activities addressed by NRC safety requirements as documented in USEC Inc.’ s Lead Cascade 

license. Transition to NRC oversight of the Lead Cascade occurred on August 25, 2006. The 

March 2004 MOU is expected to stay in effect until the termination of the Lead Cascade license. 

On January 12, 2004, USEC Inc. announced that a commercial-scale facility will be deployed at 

the Portsmouth Site. By letter dated January 27, 2004, USEC Inc. informed the NRC that it would 

 2

 Agreement between the U.S. Department of Energy (“DOE”) and USEC Inc. (“USEC”); dated June 17, 2002 

(June 2002 Agreement) 
March 21, 2007

- 3 -

submit a license application for a 3.5 million SWU/year commercial-scale facility in August 2004. 

On August 23, 2004, USEC Inc. submitted a license application for its commercial-scale facility 

known as the American Centrifuge Plant (ACP). On October 7, 2004, the NRC issued an order 

(CLI-04-30) docketing USEC Inc.= s license application. The order governs the mandatory hearing 

on the ACP, and included a 30-month milestone schedule for the NRC review and final decision 

on the ACP license application. As stated in the order [60 NRC at 436], the Energy Policy Act of 

1992 requires that the NRC Aretain authority and responsibility for the regulation of uranium 

enrichment facilities.@ Accordingly, the NRC Awill be the sole licensing and regulatory authority@

over any byproduct, source, and special nuclear material to be used at the ACP, and will hold such 

authority Awith respect to the control and use of any equipment or device in connection therewith,@

notwithstanding this MOU. 

USEC Inc. anticipates fully deploying its 3.5 million SWU/year ACP at the Portsmouth Site in 2011.

The NRC issued its draft Environmental Impact Statement (EIS) for the ACP in September 2005 

and its final EIS in April 2006. The NRC issued its final Safety Evaluation Report for the ACP in 

September 2006 and expects to make its licensing decision in 2007. If a 10 CFR Part 70 license 

for the ACP is issued, the Lead Cascade Facilities may operate concurrently with the ACP. 

DOE has leased real property (GCEP Leased Premises) and personal property to USEC and has 

set forth certain conditions under which DOE provides consent for USEC’s sublease of the Gas 

Centrifuge Enrichment Plant (GCEP) Leased Premises to USEC Inc. for the purpose of 

constructing and operating the ACP. This lease, known as the GCEP Lease or GCEP Lease 

Agreement (dated December 7, 2006), contains a GCEP Regulatory Oversight Agreement (ROA) 

(Exhibit M of the GCEP Lease Agreement) which contains the basis for DOE’s safety, safeguards 

and security oversight of the GCEP Leased Premises and/or activities of USEC and USEC Inc. 3 

within the GCEP Leased Premises that are not under NRC regulatory authority. The ACP, as well 

as the Lead Cascade, is within the GCEP Leased Premises. 

II. DEFINITIONS 

When utilized in this document, the following terms shall have the meanings indicated below. 

“American Centrifuge Plant” or ”ACP” shall mean the USEC Inc. constructed and/or operated 

commercial production 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 Plant (as amended).4

 This definition excludes activities 

associated with the USEC Inc. Lead Cascade Facility until the Lead Cascade license is 

terminated. 

“Activities associated with the ACP” or “ACP activities” shall mean any activities relating to the 

design, procurement, engineering, construction and/or operation of any component of the ACP 

commercial production facility as well as the safeguards and security programs activities by any 

 3

 In the GCEP Lease, the definition of USEC also includes USEC Inc. 

4

 License Application for the American Centrifuge Plant in Piketon, Ohio; Document No. LA-3605-0001; dated 

August 2004. 
March 21, 2007

- 4 -

participant at any location where ACP program activities occur as authorized by either DOE or the 

NRC. 

“Cognizant Security Agency” shall mean agencies of the executive branch authorized by 

Executive Order to establish industrial security programs to safeguard classified information under 

the jurisdiction of Federal agencies when disclosed or released to U.S. industry. For purposes of 

this MOU, these agencies are either DOE or the NRC. 

“GCEP Lease” or “GCEP Lease Agreement” shall mean the Lease Agreement between the U.S. 

Department of Energy and the United States Enrichment Corporation for the Gas Centrifuge 

Enrichment Plant Leased Premises, dated December 7, 2006. 

“GCEP Lease Effective Date” shall mean the date the GCEP Lease becomes effective for each 

facility or area (or portion thereof) identified in Exhibit A (as amended) to Appendix 1 of the GCEP 

Lease. 

“GCEP Leased Premises” shall mean the real property located at the Portsmouth Site leased to 

USEC as described in Exhibit A (as amended) to Appendix 1 of the GCEP Lease. 

“Matters of Common Interest” shall mean modifications to the GCEP Leased Premises including 

but not limited to related railways, roadways, structures, systems, components, hazards, activities, 

tenant mix, and population, which can impact safety, safeguards or security risks under DOE or 

NRC jurisdiction during normal, off-normal, or emergency conditions. 

“Transition” shall mean the shift in regulatory oversight between DOE and NRC for nuclear safety 

and appropriate aspects of safeguards and security. Transition for the ACP will occur at 12:01 am 

on the day following issuance of NRC’s license for the ACP unless NRC and DOE mutually agree 

to a different transition date. 

III. PURPOSE AND SCOPE 

A. It is the intent of NRC and DOE to work in concert to distinguish activities and/or facilities 

within the GCEP Leased Premises associated with the ACP under DOE oversight from 

those under NRC oversight. Accordingly, the purposes of this Memorandum of 

Understanding (MOU) are as follows: 

1. To enter into a written, mutual understanding of the roles and responsibilities of the 

NRC and DOE during the deployment and utilization of gas centrifuge technology by 

USEC Inc. in connection with the ACP and to outline the process for the transition of 

regulatory oversight responsibilities between DOE and NRC; 

 2. To clarify the regulatory boundaries between the NRC and DOE and to avoid dual 

regulation of the same activity and/or facility by USEC/USEC Inc., recognizing that 

USEC Inc. may be conducting both NRC-regulated and DOE-regulated activities for 

the ACP within the GCEP Leased Premises; 

 3. To define the way in which NRC and DOE will cooperate to facilitate obtaining 

information and knowledge regarding gas centrifuge technology and ACP operations. 
March 21, 2007

- 5 -

B. The Department of Energy enters into this Agreement under the authority of section 646 

of the Department of Energy Organization Act (Pub. L. 95-91, as amended; 42 U.S.C. § 

7256). 

C. The Nuclear Regulatory Commission enters into this MOU under the authority of Sections 

53, 57, 62, 63, 81, 103, and 161.b, of the Atomic Energy Act of 1954, as amended (42 

U.S.C. §§ 2073, 2077, 2092, 2093, 2111, 2133, and 2201(b)); and Section 201(f) of the 

Energy Reorganization Act of 1974 (42 U.S.C. § 5841(f)). 

D. 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 

within each agency’s jurisdiction. 

E. This MOU in no way restricts either of the parties from participating in any activity with other 

public or private agencies, organizations or individuals. 

F. This MOU is neither a fiscal nor a funds obligation document. Nothing in this MOU 

authorizes or is intended to obligate the parties to expend, exchange, or reimburse funds, 

services, or supplies, or transfer or receive anything of value, or enter into any contract, 

assistance agreement, interagency agreement or other financial obligation. 

G. This MOU is strictly for internal management purposes for each of the parties. It is not 

legally enforceable and shall not be construed to create any legal obligation on the part of 

either party. This MOU shall not be construed to provide a private right or cause of action 

for or by any person or entity. 

H. This MOU applies solely to the facilities and/or activities related to the ACP or the GCEP 

Leased Premises as specified in this MOU. Nothing in this MOU applies to or establishes 

a precedent for any other MOU, matter, or agreement, including any other existing or future 

agreements, between DOE and NRC for any other activity or facility owned, operated or 

leased by or for DOE.

IV. RESPONSIBILITIES 

A. REGULATORY OVERSIGHT 

1. Upon the GCEP Lease Effective Date and prior to the transition to NRC regulatory 

oversight for USEC Inc.’s ACP activities: 

a. DOE is responsible for ensuring that USEC/USEC Inc. has adequately established 

and is implementing nuclear safety, safeguards, and security programs in 

accordance with the applicable DOE Nuclear Safety Requirements (10 CFR Parts 

820, 830, and 835), DOE Security Requirements (e.g., 10 CFR Part 824), and the 

Regulatory Oversight Agreement (ROA) between DOE and USEC (Exhibit M of the 

GCEP Lease) at the GCEP Lease Premises and for ACP activities except as 

provided in IV.A.1.b below. 
March 21, 2007

- 6 -

b. In connection with USEC Inc.’s ACP application for a license under 10 CFR Part 

70 and USEC Inc.’s activities related to the application, NRC may make 

observations for the purpose of obtaining information and knowledge of the GCEP 

Leased Premises and is responsible for licensing reviews and any associated 

Quality Assurance (QA) audits. Specifically, NRC is solely responsible for 

determining the adequacy of the management measures, including quality control, 

applied to items relied on for safety (IROFS), and other USEC Inc. activities 

addressed by the ACP license application and NRC requirements. NRC is solely 

responsible for activities that affect the safe operation of the ACP for compliance 

with 10 CFR Part 70 requirements. As a result of such activities, NRC may take 

regulatory action it deems appropriate for matters within NRC jurisdiction. Matters 

associated with ACP activities prior to transition that are not within NRC jurisdiction, 

such as described in IV.A.1 above, will be referred to DOE. 

2. Following transition of regulatory oversight of activities associated with the ACP, NRC 

will be responsible for regulatory oversight of USEC Inc.’s activities as described in 

USEC Inc.’s 10 CFR Part 70 license application for the ACP, except for certain 

safeguards and security responsibilities set forth in Sections IV.B and IV.C below and 

in Attachment 15

. After transition, the NRC may observe activities in the remaining 

GCEP Leased Premises that could adversely impact the nuclear safety and/or 

safeguards and security conditions of the ACP. DOE will retain regulatory oversight 

responsibility for all activities and/or facilities within the GCEP Leased Premises not 

regulated by the NRC under an applicable 10 CFR Part 70 license. 

3. It is recognized that not all facilities and/or activities within the GCEP Leased Premises 

will transfer to USEC/USEC Inc. control when the GCEP Lease is signed, but rather will 

transition to USEC/USEC Inc. control and NRC oversight after all DOE activities have 

been completed. DOE and NRC will mutually agree on the date and time for transition 

of regulatory oversight for these activities and/or facilities in advance of each transition. 

 

4. Unless otherwise agreed to by DOE and NRC, upon termination of any ACP license 

that may be issued, DOE will be responsible for all regulatory oversight of the activities 

within the GCEP Leased Premises associated with the ACP. 

B. SAFEGUARDS AND SECURITY 

Following transition of regulatory oversight of the GCEP Leased Premises and/or activities 

associated with the ACP to the NRC: 

1. DOE will retain responsibility for granting access to the C-24 Isotope Separation 

technology authorized under the 10 CFR Part 725 - Permits for Access to Restricted 

Data. This responsibility shall include jointly administering the C-24 (Gas Centrifuge 

uranium isotope separation) access authorization program with USEC Inc. 

 

5

 Attachment 1 to this MOU defines the process for assigning safeguards and security responsibility between DOE and 

NRC over USEC Inc. subcontractors, vendors and partners involved in ACP activities. Changes to the Attachment will 

be the responsibility of the DOE Regulatory Oversight Manager in the Oak Ridge Office and the chief of the responsible 

Branch within the NRC. 
March 21, 2007

- 7 -

2. DOE will retain oversight responsibility for DOE information security requirements 

which exceed or are not contained within NRC security requirements (Operations 

Security, Technical Surveillance Countermeasures, Communications Security, 

TEMPEST, Counterintelligence, and Physical Protection of Classified 

Equipment/Materials). If these DOE programmatic requirements are written into the 

Security Plans associated with the ACP activities, DOE will transition safeguards and 

security oversight of each applicable area provided the security plan requirements 

meet or exceed DOE requirements and are fully implemented. NRC and DOE agree to 

jointly perform inspections and audits of these applicable functional areas until it is 

mutually agreed that NRC will assume sole responsibility. 

3. DOE will continue to be solely responsible for information security requirements 

involving Export Controlled Information and Unclassified Controlled Nuclear 

Information. 

4. DOE will continue to be solely responsible for all personnel access authorization 

programs for USEC/USEC Inc., its subsidiaries, and its subcontractors, vendors, and 

partners, pursuant to 10 CFR Part 710. DOE will continue to provide NRC the 

capability to access and generate reports from the Central Personnel Clearance Index 

for USEC-related activities. 

5. DOE will serve as the Cognizant Security Agency (CSA) for all facilities and/or activities 

at the Portsmouth Site not regulated by the NRC. NRC will serve as the CSA for all 

facilities and/or activities regulated by the NRC. 

6. DOE will retain the Foreign Ownership, Control, or Influence (FOCI) review function for 

all USEC/USEC Inc. activities associated with the ACP and submit the FOCI 

information to NRC for action and final determination. 

7. DOE will serve as the Designated Approving Authority for classified computer networks 

at all USEC/USEC Inc. and manufacturing partner facilities associated with the ACP. 

8. DOE will continue to regulate the federal arming and arrest authority granted to USEC 

security police officers under the provisions of 10 CFR Part 1046 and the ROA. 

9. Derivative Classifiers and Reviewing Officials from both DOE and NRC will make 

classification determinations based on DOE classification guidance for the ACP. DOE 

shall provide interpretations on the use of such guidance as requested. Classification 

appraisals shall be conducted by the assigned CSA. 

C. INTERNATIONAL SAFEGUARDS 

1. Prior to informing the Congress that the Executive Branch intends to add the ACP to the 

list of facilities eligible for the application of IAEA safeguards, DOE and NRC will reach 

agreement on responsibilities for implementation of the U.S.-IAEA Safeguards 

Agreement with respect to the ACP in accordance with applicable law and consistent 

with relevant interagency agreements, directives, and decisions. 
March 21, 2007

- 8 -

2. If the U.S. adds the ACP to the list of eligible facilities, the responsibilities of DOE and 

NRC for implementation of the U.S.-IAEA Safeguards Agreement with respect to the 

ACP will be in accordance with the agreement described in Section IV.C.1, and 

documented as an addendum to this MOU.

V. INTERFACES BETWEEN DOE AND NRC 

A. 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. 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: 

a. Substantial proposed changes to the Portsmouth Site involving Matters of 

Common Interest. 

b. Substantial proposed changes to the GCEP Lease Agreement between DOE and 

USEC dated December 7, 2006. 

c. Substantial proposed changes to the GCEP Regulatory Oversight Agreement 

Between DOE and USEC. 

d. Substantial proposed changes to "USEC and DOE Resolution of Shared Site 

Issues at the Gaseous Diffusion Plants (Revision 1)," dated March 30, 1998. 

e. Substantial proposed changes required by DOE of USEC/USEC Inc.'s operations 

potentially impacting safety and security on site. 

f. All changes in the above areas once completed. 

3. NRC agrees to notify DOE in a timely manner of the following: 

a. Substantial proposed changes required by NRC of USEC Inc.'s operations or 

substantial USEC Inc. proposed changes potentially impacting nuclear safety and 

security on site. 

b. Changes to the conditions or terms of the NRC license(s) issued or to be issued to 

USEC Inc. 

c. Reportable events which could have a negative impact on DOE-regulated 

operations. 

d. Substantial proposed changes to the Portsmouth Site involving Matters of Common 

Interest. 
March 21, 2007

- 9 -

 4. NRC and DOE will share all observation, audit, assessment, and inspection reports on 

the GCEP Leased Premises associated with the ACP as addressed in this MOU. 

5. NRC and DOE will inform each other of enforcement actions involving the GCEP 

Leased Premises associated with the ACP. 

6. NRC and DOE agree to mutually develop, maintain, and share a drawing of the GCEP 

Leased Premises which reflects the lease status of the facilities, systems, and areas 

leased to USEC/USEC Inc. and the associated regulatory status for each facility, 

system or area, as applicable, following transition. 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 Controlled 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 

1. In accordance with the National Response Plan, the NRC will be the Lead Federal 

Agency (LFA) for an emergency at the Portsmouth Site. If the origin of the emergency 

is determined to be in the non-leased portion of the Portsmouth Site, then the LFA 

would be transferred to DOE. DOE and NRC will use appropriate joint procedures 

which will ensure compatibility in response to emergencies in Leased Facilities under 

NRC regulatory oversight. 

2. The emergency planning requirements for the GCEP Leased Premises, including 

offsite notifications and emergency classification levels and their corresponding 

emergency action levels, will be in accordance with the site emergency plans and 

procedures which will be coordinated by the NRC among shared site regulators and 

tenants before and during implementation. 

C. Referrals 

1. During the course of conducting DOE reviews and inspections of nuclear safety, 

safeguards, and security in the areas under DOE responsibility, DOE inspectors may 

identify nuclear safety, safeguards, or security concerns that could affect the licensing 

of the ACP. In such instances, those concerns identified by DOE will be referred to the 

NRC for appropriate action. If DOE identifies situations with immediate safety, 

safeguards, or security significance, it will immediately communicate this information to 

USEC Inc. and the NRC's Regional Branch Chief and NRC’s ACP Project Manager. 

2. Similarly, during the course of conducting nuclear safety and safeguards observations 

and inspections of the ACP, NRC personnel may identify nuclear safety, safeguards or 

security concerns within the area of DOE responsibility. NRC will refer these concerns 
March 21, 2007

- 10 -

to the DOE Regulatory Oversight Manager for appropriate disposition. If the NRC 

identifies situations with immediate safety, safeguards, or security significance, it will 

immediately communicate this information to USEC Inc. and the DOE Regulatory 

Oversight Manager. 

3. Both DOE and NRC will be responsible for processing, under its established 

program(s), allegations, declarations, statements or assertions of impropriety or 

inadequacy whose validity has not been established and employee complaints or 

concerns of regulatory significance. Each agency will keep the other agency informed, 

as appropriate, of the existence, status, and resolution of such allegations, complaints, 

or concerns. Each agency will assure, in accordance with its procedures, that each 

allegation, complaint, or concern is promptly referred to the agency or entity that has 

jurisdiction over the allegation, complaint, or concern. 

4. DOE and NRC agree to exchange information on the ACP for matters of mutual 

interest (e.g., Foreign Visitors, Foreign Ownership, Control or Influence 

Determinations; and Unauthorized Disclosures). 

D. Coordination 

1. DOE will coordinate with USEC Inc. to inform NRC's Regional Branch Chief and NRC’s 

ACP Project Manager of GCEP facility reportable events, under DOE's occurrence 

reporting system, for which DOE is responsible. 

2. DOE and NRC shall consult with each other before disclosing information related to 

the MOU to preclude dissemination of information which may be exempt from 

disclosure under the Freedom of Information Act, as amended, or other applicable law. 

Freedom of Information Act requests, Congressional requests or other requests for 

documents will be referred to the agency which authored the document for resolution. 

Although it is NRC's practice to make available to the public non-sensitive 

docket-related DOE correspondence that is not classified, restricted, privileged, or 

proprietary by placing these documents in their ADAMS System, DOE may specifically 

request that information be withheld. 

3. On occasion, DOE may need to move its nuclear materials through GCEP Leased 

Premises to another location. NRC will not require DOE to fill out Form 741 and/or 742 

if the nuclear materials only pass through (and are not processed in) GCEP Leased 

Premises, and the time frame in which the nuclear materials are in the GCEP Leased 

Premises is not expected to exceed eight (8) hours. 

4. DOE and NRC will mutually agree on the date and time for transition of regulatory 

oversight for activities and/or facilities in advance of each transition. USEC/USEC Inc. 

will be provided timely notifications of all regulatory oversight transition dates. 

VI. POINTS OF CONTACT 

A. The principal senior management contacts for this MOU will be DOE's Assistant Manager 

for Nuclear Fuel Supply, Oak Ridge Office, and NRC’s Director, Division of Fuel Cycle 
March 21, 2007

- 11 -

Safety and Safeguards, Office of Nuclear Material Safety and Safeguards. 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 DISPUTES 

A. 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 Office, 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 Assistant Manager for Nuclear Fuel Supply, Oak Ridge 

Office, and the Director, Division of Fuel Cycle Safety and Safeguards, Office of Nuclear 

Material Safety and Safeguards, NRC. 

VIII. EFFECTIVE DATE AND MODIFICATION 

This MOU shall become effective upon signing by the Assistant Manager for Nuclear Fuel Supply, 

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. SEPARABILITY 

If 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. 

For the U.S. Nuclear Regulatory Commission 

_________________________________ 

Robert C. Pierson 

Director, Division of Fuel Cycle Safety and Safeguards 

Office of Nuclear Material Safety and Safeguards 

For the U.S. Department of Energy 

_________________________________ 
March 21, 2007

- 12 -

Larry W. Clark 

Assistant Manager for Nuclear Fuel Supply 

Oak Ridge Operations 

U.S. Department of Energy 
March 21, 2007 

Attachment I 

Safeguards and Security Responsibilities 

For Subcontractors, Vendors and Partners 

Associated with the 

American Centrifuge Plant 

I. PURPOSE AND SCOPE 

 The purpose of this attachment is to define the process for assigning safeguards and security 

responsibility between DOE and NRC over USEC Inc. subcontractors, vendors and partners 

involved in ACP activities. By agreement of DOE and the NRC, this attachment will assign 

safeguards and security responsibilities commensurate with efficient operations and avoid 

dual regulations wherever possible with respect to the ACP. However, nothing in this 

attachment restricts or otherwise limits the authority of either NRC or DOE to exercise its full 

regulatory authority, including both inspection and enforcement authority. It is understood that 

this attachment defines participants and facilities at a given point in time, and that commercial 

operations may require the introduction of additional participants and/or facilities; therefore, it 

is agreed that DOE and the NRC shall use the framework defined in this attachment to assign 

safeguards and security oversight responsibilities for any additional participants and/or 

facilities introduced to the ACP. 

II. DEFINITIONS

 “Manufacturing Partners” shall mean the contractors and associated facilities chosen by 

USEC Inc. to manufacture completed centrifuge machines and/or components and 

assemblies that will be used in such machines. These operations will require the 

Manufacturing Partners to participate in the facility clearance process in order to possess 

classified centrifuge (i.e., C-24) technology. 

 “Vendors” shall mean contractors and/or commercial entities and associated facilities that will 

be selected by USEC Inc. to supply raw materials, specific components, or services to the 

Manufacturing Partners. These operations may not require the Vendors to participate in the 

facility clearance process. 

III. RESPONSIBILITIES 

A. NRC will provide regulatory oversight and have the safeguards and security responsibility 

for USEC, Inc. located in Bethesda, Maryland. 

B. Prior to transition, DOE will provide regulatory oversight and have the safeguards and 

security responsibility for all entities associated with the ACP located at Piketon, Ohio. 
March 21, 2007

- 2 -

C. Following transition, the DOE will retain regulatory oversight and safeguards and security 

oversight responsibility for manufacturing partners associated with the Cooperative 

Research and Development Agreement (CRADA) efforts between USEC and UT-Battelle, 

LLC, located at the Oak Ridge, Tennessee, facilities. This includes the following 

companies and facilities: 

 USEC Inc. (ACEMP operations) located in Oak Ridge, TN 

 Boeing-Oak Ridge, Inc. located in Oak Ridge, TN 

 

D. Following transition, the NRC will assume safeguards and security oversight responsibility 

for the following manufacturing partners and vendors associated with the ACP: 

 ATK Composites located in Clearfield, UT 

 Fluor Enterprises, Inc. located in Greenville, SC 

 Honeywell International, Inc. located in Torrance, CA 

 USEC Inc. (commercial operations) located in Piketon, OH 

 Honeywell FM&T (ACP operations) located in Kansas City, MO 

E. Following transition, the DOE will retain regulatory oversight and safeguards and security 

responsibility for USEC Inc. vendor procurement activities associated with both the 

CRADA activities and the ACP activities. NRC will be kept informed of all classified vendor 

operations and may participate in any of the associated surveys that DOE performs on 

these activities. 

F. Following transition, for USEC Inc. activities associated with the ACP, DOE agrees to 

provide Subject Matter Experts to assist NRC in the evaluation of the following programs: 

Operations Security (OPSEC), Technical Surveillance and Countermeasures (TSCM), 

Counterintelligence (CI), TEMPEST, and Physical Protection of Classified 

Equipment/Materials. Any observations or findings from such evaluations will be included 

in NRC’s inspection reports and reviewed by NRC to determine any violations of 

requirements or commitments.