US NRC REGION.III ID:708-515-1259

AGREEMENT ESTABLISHING GUIDANCE FOR. NRC INSPECTION

ACTIVITIES AT

THE PADUCAH AND PORTSMOUTH GASEOUS DIFFUSION PLANTS

BETWEEN

DEPARTMENT OF ENERGY REGULATORY OVERSIGHT MANAGER

AND

NUCLEAR REGULATORY COMMISSION

I. Authorit

The United States Department of Energy (DOE) and the United States

Nuclear Regulatory Commission (NRC), Region III, enter into this

Agreement under the authority of Section 1701 (c)(4)B of the Atomic

Energy Act (AEA) of 1954, as amended and the Joint Statement of

Understanding between the Nuclear Regulatory Commission and the

Department of Energy on Implementing Energy Policy Act Provisions on

Regulation of Gaseous Diffusion Uranium Enrichment Plants (Joint

Statement), 59 Fed. Reg,4M (February 1, 1994).

II. Background

The Atomic Energy Act of 1954, as amended by the Energy Policy Act of

1992 (42 U.S.C. s 2297 et seq.),'created the United States Enrichment

Corporation (USEC), a government corporation for the purpose of managing

and operating the uranium enrichment enterprise previously owned and

operated by the DOE. The Energy. Policy Act (the Act) also required that

by October 24, 1994, the NRC establish its standards for the regulation

of the gaseous diffusion plants leased by the USEC in order to protect

the public health and safety and to provide for the common defense and

security. After these standards are promulgated, the USEC is required

to apply at least annually for a certificate of compliance with the

standards. Until such time as the NRC assumes regulatory jurisdiction

at the gaseous diffusion plants (GDPs), DOE will exercise nuclear safety

and safeguards and security oversight authority at the leased portion of

the gaseous diffusion plants located in Paducah, Kentucky, and Piketon,

Ohio. The regulatory framework of DOE's authority is contained in the

Regulatory Oversight Agreement, Exhibit D to the Lease Agreement between

DOE and USEC dated July 1, 1993. Pursuant to the Joint Statement, it is

agreed that the NRC will locate observers at the facilities on or after

July, 1, 1993, to obtain information and knowledge that may be useful to

NRC in developing or implementing its standards. The Joint Statement

also provides that interim guidance for the NRC inspectors/observers

will be established between the DOE R'egulatory Oversight Manager and the

NRC covering the period before NRC assumes regulatory jurisdiction over

the facilities.
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NRC/DOE AGREEMENT -2 -

III.Sce

A. This Agreement defines the way in which DOE and NRC will cooperate

to facilitate the NRC's obtaining of information and knowledge

regarding the gaseous diffusion plants and USEC's operation

thereof through routine and special inspection activities during

the interim period before NRC assumes regulatory responsibility.

The:NRC inspection activities will be conducted for the purpose of

gathering information useful to the NRC in developing the 10 CFR

Part 76 standards and making the initial certification decision

for the GDPs as directed in the Atomic Energy Act of 1954, as

amended. This Agreement does not apply to investigations or

inquiries conducted by DOE.

B. For the purpose of this Agreement, the term "inspection" as

applied to DOE shall mean the examination, review, or evaluation

of any program or activity of the USEC with respect to: (1) the

effectiveness of the program or activity in ensuring that the

health and safety of the public and plant personnel are adequately

protected; (2) the safe operation of the facilities; (3)

compliance with any applicable DOE Nuclear Safety and Safeguards

and Security Requirements as defined in the Regulatory Oversight

Agreement (ROA). With respect to the NRC, the term "inspection"

is defined as the onsite or Regional/Headquarters Office review of

any program or-activity of USEC with respect to prospective

compliance with proposed NRC standards for the regulation of the

leased portions of the gaseous diffusion plants.

= C. Nothing in this Agreement is intended to restrict or expand the

authority of DOE or to affect or otherwise alter the terms of the

ROA.

D. Nothing in this Agreement confers upon the NRC Inspectors

authority to (1) interpret or modify DOE requirements imposed on

the USEC;.(2) take enforcement actions; or (3) direct or recommend

gaseous diffusion plant employees to take or not to take any

actions. Authority for all such actions is reserved exclusively

to DOE, until the NRC assumes regulatory oversight for the leased

portion of the gaseous diffusion plants in accordance with the

Act.

E. Nothing in this agreement is intended to restrict or otherwise

limit the authority of the NRC to exercise its full regulatory

authority, including both inspection and enforcement authority, at

such time as NRC assumes regulatory authority over the leased

portion of the gaseous diffusion plants in accordance with Title

II of the Atomic Energy Act of 1954, as amended.

F. Under this Agreement, up to three NRC Resident Inspectors may be

located at each gaseous diffusion plant site with visits from

Regional and Headquarters staff to become familiar with plant

operations.
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NRC/DOE AGREEMENT. - 3 -

IV. DOE's General Responsibilities

DOE is responsible for conducting nuclear safety and safeguards and

security inspections of the leased portions of the gaseous diffusion

plants to ensure that the plants are designed, constructed, tested,

operated, maintained, and decommissioned in accordance with DOE

regulatory requirements. These inspections are conducted in accordance

with the DOE Regulatory Oversight Inspection and Enforcement Manual

(Manual) using personnel appropriately qualified and trained to perform

the necessary tasks. Only the DOE may take appropriate enforcement

actions for all inspections conducted under this Agreement.

V. NRC's General Responsibilities

A. The NRC, through its Resident and other inspectors, will conduct

inspections and make observations for the purpose of obtaining

information and knowledge of the gaseous diffusion plants and

USEC's operation thereof. Such inspections shall be coordinated

with the authorized DOE representative to ensure that both the

scope and findings of the inspections are clearly communicated.

B. NRC activities will be performed in accordance with Federal

standards and requirements and DOE practices, with no undue burden

on the DOE or the USEC.

VI. -Implemntat ion

The DOE and NRC agree to work in concert to ensure that the following

staffing, inspection and enforcement, communications and information

exchange, and conflict resolution protocol regarding the NRC Inspector

activities are followed.

A. Staffing

1. The NRC will select its inspectors in accordance with its

own procedures and qualifications.

2.1 The NRC is responsible for obtaining security clearances for

its inspectors.

3. The NRC is responsible for ensuring that NRC Inspectors

comply with safety requirements established by the USEC. The

NRC is not required to follow USEC's fitness-for-duty

program but will instead follow its own internal fitnessfor-duty program. DOE is not responsible for ensuring

access or space for NRC personnel. USEC is responsible for

ensuring access and space for NRC personnel.

4. NRC and Office of Government Ethics Conflict of Interest

regulations will be in effect for NRC Inspectors conducting

inspection-activities related to the Gaseous Diffusion

Plants.
.1iS NRC REGION III ID:708-515-1 2 5 9 MAR 18'96 10:11 No.007 P.04

NRC/DOE AGREEMENT - 4 -

B. Inspectjons and Enforcement

1. The NRC Inspectors' activities are intended to provide

information for use in developing standards for the gaseous

diffusion plants and in determining whether to issue the

initial certificate and/or approve a compliance plan in

accordance with the Act. NRC inspection activities are also

iittended to assist USEC in becoming familiar with NRC

practices.

2. The NRC Inspectors are responsible for adhering to safety

requirements imposed by USEC related to personal safety and

radiological protection,

3. The NRC Inspectors may accompany the DOE Site Safety

Representative during inspections, inspection entrance and

exit interviews, and enforcement meetings.

4. The DOE will provide the NRC with a copy and current updates

of the DOE Manual.

Safety/technical allegations or concerns received by the NRC

Inspectors will be provided to the DOE for processing in

accordance with DOE procedures, including DOE procedures for

confidential sources.

6. If an NRC Inspector identifies situations with immediate

safety significance, he or she will immediately communicate

this information to the USEC and the DOE Site Safety

Representatives. It is essential that this information be

discussed with a DOE site representative immediately upon

discovery so that DOE may take prompt action as dictated by

the situation. If the DOE Site Safety Representatives are

unavailable, the NRC Inspector will transmit this

information immediately to the DOE Regulatory Oversight

Manager or his designee.

7. DOE will receive copies of all written communications

between USEC and NRC relating to activities of NRC

Inspectors under this agreement.

S. If potential violations of DOE regulatory requirements are

identified as a result of the NRC's inspection activities,

DOE may take appropriate enforcement action as set forth in

Appendix B of the ROA. Enforcement action, if any, will be

taken only by DOE.

C. Communications and Information Exchange

1. The DOE and NRC agree in good faith to make available to

each other information within the intent and scope of this

Agreement.
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NRC/DOE AGREEMENT - 5

2. The DOE and NRC agree to meet every 6 months at mutually

agreeable times and locations to exchange information on

matters of common concern pertinent to this Agreement.

3. The DOE and NRC agree to consider each other's identified

information needs and concerns when developing inspection

plans.

4. The NRC will conform to DOE practices regarding information

disclosure. For instance, the NRC must abide by DOE

protocol not to publicly disclose DOE inspection findings

prior to the release of the DOE inspection report. However,

the NRC may discuss with USEC any NRC finding relative to

the development of 10 CFR Part 76 standards or certification

of the gaseous diffusion plants in accordance with the Act,

as amended.

5. To preclude dissemination of information which may be exempt

from disclosure pursuant to the Freedom of Information Act,

the DOE and NRC shall consult with each other before

disclosure of information related to this Agreement.

6. The NRC will notify DOE before stationing an NRC Resident

Inspector at a site.

A. 'The principal senior management contacts for this Agreement will

be the Director, Division of Radiation Safety and Safeguards,

Region III, NRC, and the DOE Regulatory Oversight Manager. These

individuals may designate appropriate staff representatives for

the purpose of administering this Agreement.

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.

VIII. Resolution of Conflicts

A. If disagreements or conflicts about matters within the scope of

this Agreement arise, DOE and NRC will work together to resolve

these differences.

B. Resolution of differences between DOE and NRC staff over the

significance of findings will be the initial responsibility of the

DOE Regulatory Oversight Manager.

C. The DOE Office of Chief Counsel, Oak Ridge Operations, will have

the final authority to interpret DOE's regulatory requirements.
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NRC/DOE AGREEMENT - 6 -

IX. Effective Date, Termination, and Modification

This Agreement shall become effective upon signing by the Region III

Administrator, NRC, and the DOE Regulatory Oversight Manager, and shall

remain in effect until NRC issues the initial certificate and/or

approves a compliance plan, which terminates this Agreement. A formal

review, not less than 6 months after the effective date, will be

performed concurrently by the DOEand NRC to evaluate implementation of

the Agreement and resolve any problems identified. This Agreement will

be subject to periodic reviews and may be amended or modified upon written agreement by both parties.

X. Seoarability

If any provision(s) of this Agreement, or the application of any provision(s) to any person or circumstances, Is held invalid, the

remainder of this Agreement and the application of such provisions to

other persons or circumstances shall not be affected.

FOR THE U. S. DEPARTMENT OF ENERGY

RR•bl atory Ove-rght Manager /

THE U.S.UCLEAR .R REGULATORY COMMISSION

Regional Administrator