u U /zeo(uz VhiV) 06:55 FAX 202 586 2027 NUCLEAR ENERCY [6 002

Modifcation 1

to

AGREEMENT BETWEEN

THE U.S. DEPARtMENT OF ENERGY ('"DOE")

AND.

"USEC INC. (•.USEC-)

DOE and USEC hereby agree:

A. Pursuant to Article 5.D. of the AGREEMENT BETWEEN TEE U.S.

DEPARTMENT OF ENERGY ("DOE") AND USEC .INC. ("USEC"), dated June 17,2002 (the

"DOE-USEC Agreement, of June 17, 2002)". the Parties modify the DOE-USEC Agreement of

June 17,2002 to incorporate the following additional provisions into the DOE-USEC Agreement

of June 17, 2002:

1. Executive Agent Memorandum ofAgreement (MOA)

Nothing in the DOE-UJSEC Agreement of June 17, 2002 shall be construed as affecting,

impairing, modifying or superseding any provision of the MEMORANDUM OF AGREEMENT

BETWEEN TBE UNITED STATES ACTING BY AND THROUGH TH UNITED STATES

DEPARTMENT OF STATE, AND TEE UNITED STATES DEPARTMENT OF ENERGY

AND THE UNTNED STATES ENRICHMENT CORPORATION, FOR USEC TO SERVE AS

THE UNITED STATES GOVERNMENT'S EXECUTIE AGENT UNDER TIE

AGREEMENT BETWEEN THE UNITED STATES AND THE RUSSIAN FEDERATION

CONCERNING TBE DISPOSITION OF MIGHLY ENPRCHED URANTUM EXTRACTED

FROM NUCLEAR 'WEAPONS, dated April 18, 1997 (the "Executive Agent MOA"). The -

commitments made by DOE and USEC in the DOE-USEC Agreement of June 17, 2002,

inbluding Article 1, are between DOE aria USEC only and are confined to the terms and

conditions expressly provided therein.

2. Use of Information and Confidentiality of Trade SecretfProprietary Information

(a) USEC understands and acknowledges that infbrmation provided by USEC under the DOEUSEC Agreement of June 17, 2002 will be made available.by DOE to agencies of the United

States and, subject to an appropriate agreement prohibiting any further. disclosure not authorized

by the D OE-USEC Agreement of June 17, 2002, t6 DOE contractors designated by DOE to

evaluate such information for the purpose of ensuring that the objectives of the DOE-USEC

Agreement of June 17, 2002 are met.

Nb) USEC may designate information provided under the DOE-USEC Agreement of Juiie 17,

I
uý/zd/02 WED 06:56 FAX 202 5186 2027 NUCLEAR ENERGY (.]003

2002 as Trade Secret/Proprietary Information so long as the information was developed at

private expense outside of any CRADA or other Government contract, and such information

embodies trade secrets or is information that is commercial or financial End is confidential or

privileged, by affxing to each page containing such information the legend "Contains USEC

-Trade Secret/Proprietary Information, For Contract.Implementation or Administration Purposes

SOnly -- Not for Public Disclosure or Further Distribution" or simiar legend authorized under the

CRADA referenced in Article 4 or by another DOE-USEC agreement to pages containing Trade

Secret/Proprietary Information. If Trade Secretf/Proprietary Information is orally disclosed by

USEC to DOE or its representatives, USEC shall identify any Trade Secret/Proprietary

information as such orally at the time of the disclosure and confirm the Trade Secret/Proprietary

nature of the information in a written summary thereof, appropriately marking such information

as provided for above, within 30 days of the original oral disclosure. Orally disclosed Trade

Secret/Proprietary Information confirmed in writing in accordance with the preceding sentence

shall be treated as Trade Secret/Proprietary Information in accordance with this Article. In

addition, USEC shall identify any Trade Seciet/Proprietary Information copies of which are

provided pursuant to the access provided under Section 3 of this Modification I in accordance

with the procedures set out in this paragraph.

(c) DOE may disclose an item of Trade Secret/Proprietary Information under the DOE-USEC

Agreement of June 17, 2002 without the consent of USEC and the restrictions under this

provision on use or disclosure of such information shall not apply if: (i) such item is or becomes

publically available other than as a result of a disclosure by DOE; (ii) such item has been made

available by USEC to others without obligation concerning its confidentiality; (iii) such item is

already available to the Government without obligation concerning its confidentiality; (iv)

disclosure of such item of Trade Secret/Proprietary Information is required by a law applicable

to DOE, provided however that DOE shall disclose such item of Trade Secret/Proprietary

Information only to the extent required by such law; or (v) DOE determines that such item of

Trade Secret/Proprietary Information may provide evidence of a violation of law by USEC or

any other person or a violation of a contractual obligation of USEC, and DOE further determines

that disclosure of such item of Trade Se6ret/Proprietary Information is necessary in order to

allow the United States to take actoio wxth respect to such'violation, which action -shall include

without limitation, investigating, prosecuting, enjoining, or restraining such violation,. provided

however that the DOE shall disclose such item of Proprietary Information only to the extent

necessary to take such action with respect to such violation.

(d) Subject to subsections (a), (b) and (c) above, DOE agrees that (i) it shall use any USEC Trade

Secret/Proprietary Information provided by USEC under the DOE-USEC Agreement of June 17,

2002 only for the purpose of implementing or administering the DOE-USBC Agreement of June

17, 2002; (ii) it shall not disclose properly marked USEC Trade Secret/Proprietary Information

except to U.S. Government employees and representatives authorized by DOE for purposes of

implementing or administering the Agreement of June. 17, 2002 and who are advised of the

Trade Secret/Proprietary nature of the information, and as is required by applicable law'

2
• zts/uz WED 06:57 FAX 202 586 2027 NUCLEAR ENERGY 0004

including the Freedom of Information Act, (iii) all USBC Trade Secret/Proprietary Information

provided by USBC under the DOE-UtSEC Agreement of June 17, 2002 which was developed at

private expense outside of any CRADA or other Government contract is the property of USEC

and it will be returned to USEC upon its request four years after completion of the DOB-USEC

.Agreement of June 17, 2002, or if specifically used. in any agreement with DOE, will be subject

to use, disclosure and disposition provisions set forth in any such :agreement.

(e) Unless otherwise agreed to by the parties, I year after USEC's achieving of the milestone for

beginning of conmnmercial plant operations of the advanced enrichment facility provided for under

Article 3 of the DOE-USEC Agreement of June 17, 2002 or I year after completion of that

Agreement, whichever occurs first, the restrictions in this provision with respect to further use

and disclosure of information marked as USEC Trade Secret/Proprietary Information shall not

apply with respect to any USEC Trade Secret/Proprietary Information which USEC at that time

does not specifically identify. Upon the achievement of any given milestone established

pursuant to Article 3 of the Agreement, restrictions regarding the disclosure or use of USBC

Trade Secret/Proprietary Information shall no longer apply to the disclosure or use of the fact of

the achievement of any milestone.

. (f) The Parties acknowledge that USEC may provide information or data to DOE pursuant to

other agreements between the Parties, and agree that the terms of the agreement under which

information or data is provided govern the use and disclbsure of such information.

3. DOE access to USEC Data and Facilities

USEC agrees to provide reasonable access to data, facilities and USEC employees and

contractors for DOE's authorized representatives to monitor USEC's implementation of the

DOE-USEC Agreement of June 17, 2002, including the Deployment Working Group Plan. DOE

access to data, facilities and USEC employees and contractors shall be at reasonable times and at

the locations of the data, facilities, emplpyees and contractors unless otherwise agreed to by

DOE and USEC, or unless required to 5'e submitted to Dd:8 by the DOE-USEC Agreement of

June 17, 2002 or other DOE-USEC agreement.* DOE shall coordinate with USEC in advance to

help ensure that DOE's access to data, facilities, employees and contractors under this Section

does not interfere with on-going operations and complies with all safe•ty, health and regulatory

requirements. Any plans and information provided to DOE by USEC under the DOE-USEC

Agreement of June 17; 2002 which contain USEC Trade Secret/Proprietary Information, shall be

marked with the restrictive legend set forth in, and in accordance with, the Use of Information

and Confidentiality of Trade Secret/Proprietary Information clause of the Agreenentr, and such

data shall be handled in accordance with the terms of that clause.

B. The Parties substitute the attachment found at Attachment I of this Modification for

Attachment I to the Agreement.

3
Q~j005

NUCLEAR ENERGY w3b ZUX7

C. Footmte 2 oa page 13 of 1tb OB-TJSBC Agre=ent of ,une 17, 2002 is relocated to

thce emad of t~he fxrd Detence uinder Axtioke 4B.(a) oanpagq 12-

D. To mr~plevteat Azticlo 4-B .. &"-4tpcJiýcztn Ufranium Avneay of thz DOEUSEC A*=mut of Juw 17, 2002, T.SEC will mankm a Pod fbith offort to imp1omnnt the

prou•educs foort •rh in the its lotter datwd Jfily 15, 2002, to select cylUnd=rs for priiorty

processiig at the Sf1T f&City (AttaobwMt 2).

This Modffleaion 1 il effctive thisZ IF ay Of August. 2002,

.-wLee t Lib=U=a Otis

Gonetul COMM01 l U.S. DepadtrenW ofMiegY

Officor

tSEBC 14.

4
INULJLI~A1( frNEHUY I Z0060

Attachment I

Table 1. Bounding concentrations of dispersed transurmnic

and "

0 Tc contamination In-the DUF, tails cyrinders

Contarfiinan"t ppbu MsPu 0.00012 •.Pu "'o 4

.5FPU0.043

23Np 5.2

'Tc * 15.9

S '•Arn 0.0013
a 007

Attachment 2

Memorandum

To: Mary Eggipr

* From: Morris Brown '2" " y. -- te.: July .15, 2002

Subject: Processing protocol for the Affected Inventory

Pursuant to Sect5on B. of Article 4 in the Agreement: .Betm'een DOE and USEC dated

June 17, 2002, entited Out-Of-Specification Uranium Inventory, you have e•ked us. to

make a good-faith effort-to process the potentially contaminated cylinders-from Paducah

fri a manner that follows the sampling recommendations In the.draft February 2002

ORNL report.

To date and generally speaking, Affected Inventory cylinders are removed from their

storage location In Paducah for shipment to ?ortsmouth for sampling and processing

based on their accessibility; i.e., where they are located in the "pile." In response to

your request, during the next 90 days USEC will make a good-faith effort to sample at

least the following numbered cylinders for technetiurrr contamination:

Cylinder.Numbers: 113d67, 113427, 114036, 114075, 1134,69, 114044, 115949,

• 116031, 112700. 115938, 112792, 112733, 112790, 115S27, 115928, 116612, 117062,

118979, 117818, 115930, 116522. 116466, 116534, 11ý050, 116I27, 116264, 115951,

111838, 112821, 112828, 113680, 115894, 1127"18, 116044,.112727, 113909, 115041,

As a result of this effort, 10 of the cylinders recommended for further sampling in the

draft February 2002 ORNL report should be included. over the entire 15 month.

processing period, USEC expects that it Will be abie to gain access to an additonal 4

cylinders recommended in the report. As these additional cylinders become available

they also will be sent for sampling and processing at Portsmouth.

I trust this. processing.protocol.is responsive toyour. request. Please let us know if you

have any-ques..Uons-
Lljw UU I

U.S. DEPA RTMENT "i'•LfY QI& ER G

WASHINGTON, D.C. 20585

OFFICE OF NUCLEAR ENER G )

SCIENCE AND TECHNOLOGY

Fax Number -.(202)586-8353_

FAX NO. 7C -

DATE: 8- 2j~-o2.

) TO:

PO. o NO. PHONE NO. g •o$• FROM:

Sent By:

This transmittal consists of__ page(s) excluding cover sheet.

Comments:

p sQ"5e ,,.-tcxLý A .. C,- C0ýý 0-

oc.?

+, -ý ý -e 4 i-e e- v4 z -1 -r

4-

..-L UsEc Cc. .