Springfields

Site Stakeholder Group

Site Reports – April 2017

Contents

Business Report 2

Environment, Health & Safety Report 6

Socio-Economic Report 9

Glossary and Abbreviations 12

Springfields Fuels Limited

Springfields, , Preston, PR4 OXJ

T+44 (0) 1772 762000 www.westinghousenuclear.com/springfields

Business Report

Simon Marshall Managing Director

1 Environmental, Health, Safety & Quality – Highlights

1.1 As of 27th March 2017, Springfields employees have worked 429 days without an industrial safety accident that resulted in a days-away case. In addition, there have been no recordable injuries so far this financial year.

1.2 A counter terrorism Security exercise was conducted on January 11th. We would like to thank everyone for their cooperation and participation. There were a number of good points and some learning.

1.3 In March Springfields Fuels was successful in transitioning to the latest ISO 9001 Quality and 14001:2015 Environmental Management standards.

2 Operational

2.1 The 31st March brought to a close the 2016/17 financial year, during which the production of Advanced Gas-Cooled Reactor (AGR) fuel was completed as planned, and deliveries to

EDF Energy’s stations successfully achieved. Intermediate products (UO2 powder and granules) have also been manufactured to time and delivered in line with our customers’ requirements.

The LWR (Light Water Reactor) fuel manufacturing facility has increased productivion taking on additional fuel load and successfully achieving all deliveries to EDF SA in France. In order to meet the growing demand for the RFA1300 fuel variant (a physically longer fuel assembly than the RFA900 being manufactured) the LWR production facility has been modified to accommodate this requirement. All process and product qualification activities were completed and approved by EDF SA in November 2016, enabling our first delivery of RFA1300 fuel in December 2016.

2.2 Following Toshiba’s acquisition of a controlling stake in NuGen, Springfields is looking forward to manufacturing the AP1000 fuel for the initial cores and the subsequent re-loads of the three stations planned for the Moorside site in Cumbria. The introduction of the LWR fuel manufacturing capability has been a crucial step in positioning Springfields to produce fuel for both the current and next generation of reactors planned for construction in the UK and across the rest of Europe, Middle East and Africa. This objective is further supported by the modifications of the facility to accommodate the longer RFA1300 fuel variant, as the AP1000 fuel is of a similar geometry.

2.3 The installation of the HT-IDR (High Throughput – Integrated Dry Route) technology for UF6 re-conversion has been completed on all three process streams. All streams are continuing

to perform extremely well. This project has been vital to ensure we have the necessary UF6

to UO2 re-conversion capacity to meet future fuel demand.

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3 Uranium Recovery

3.1 All Authority (NDA) and Ministry of Defence (MOD) contractual targets should be met this year. This has involved the development and successful implementation of new processing capability on many production lines.

3.2 Pre-processing of off-site material to allow processing in SFL facilities has been completed, work is now complete in preparing for storage the material that will not be processed. The NDA do not currently have any plans for transferring any other material from any other site to Springfields. International opportunities for Uranium Recovery continue to be explored to off- set any decline in UK business.

3.3 Washing of the obsolete hex cylinders continues to plan. This work will continue into next year. The effluent blending rig is functioning, allowing cylinder effluents to be processed which have previously slowed the process.

4 Decommissioning

4.1 A336 (UN Production) & A337 (UO3 Production)

Though operations continue in these plants, work has now commenced on the initial phase of decommissioning across the two areas. This has been primarily focused on the decontamination and removal of several items of plant and equipment that have been identified as already redundant. In addition, civil and mechanical works are also currently ongoing to construct new pipe-bridge structures to allow for the diversion of several mechanical services currently passing through the buildings. Future decommissioning plans continue to be developed with the NDA to align with the site’s residue processing programme, plant closure strategies and NDA funding availability.

4.2 A88 (Main Workshop)

Work continues on the construction of an extension to A611 to enable the relocation of the site’s Main Workshop, and discussions are continuing with the NDA to agree the decommissioning plan for A88 including diversion of all associated services. A suitable Care and Maintenance plan is being developed for the building in the interim, and prior to its final demolition.

4.3 Contaminated Land Management

The 2016/17 programme of routine sampling and monitoring has progressed without issue or any significant changes being reported. Surveying of the historic east site drainage network was also completed in late 2016 and NDA has now requested that an options report including cost estimates be prepared on potential remedies and next-steps regarding its potential impact on downward flow into Deepdale Brook.

5 Employees

5.1 Springfields is currently in the process of conducting this year’s apprentice recruitment – a total of five are required. Aptitude tests and interviews have been carried out and the five

successful candidates will begin their employment in August 2017. These additions are key to ensuring we continue to bring new blood into the organisation to support growth and base business going forward from a talent perspective, even though the company continues to reduce its number of employees overall in the UK.

5.2 Since the last meeting (November 2016), a total of eight employees have left the company. We have recruited two people into new roles supporting the wider Westinghouse organisation in both New Build and Decommissioning business as we look to grow these opportunities in the UK, with a further three recruits in the process of being finalised. At present approximately 1065 people are employed by Westinghouse in the UK. Some of our employees have again supported Westinghouse projects at power stations in the UK and in other international locations such as Korea.

5.3 The annual reward and recognition event (Recognising Excellence) was held on 24 November. The event recognises those employees who have won UK safety awards and George Westinghouse Signature Awards of Excellence – the company’s highest award for technological excellence. Around 80-employees attended the lunch and awards presentations which were held at The Villa, Wrea Green.

5.4 The site transformation team continue to work on projects in partnership with union representatives to ensure the site remains competitive and is in a strong position to attract new business. As it becomes more and more difficult to operate in commercial markets, the focus remains on the safe operation of the site at all times.

5.5 As our presence in West Cumbria increases with the growth in our decommissioning and new build activities, we continue to be involved in the Centre of Nuclear Excellence and the National College for Nuclear alongside our continued support for the National Skills Academy for Nuclear showing our commitment to play an active role in ensuring future skills requirements on both a local and national level are understood.

6 Commercial

6.1 Westinghouse has secured a new contract for Springfields to 2021 with EDF for the provision of UF6 cylinder maintenance services covering transport, storage, washing, inspection and certification in support of the EDF fleet of cylinders which is used in the fuel cycle operations of EDF in France and EDF Energy in UK.

6.3 Agreement has been reached with the Nuclear Decommissioning Authority for the work on their legacy materials to be performed at Springfields in the coming financial year to 31st March 2018. This confirms extension of the work on processing NDA’s uranium residues for another 12 months and retains operation of unique facilities into this period. Westinghouse continues to work with the NDA to find the most appropriate route for disposal of any remaining historic liabilities located on the Springfields site.

6.4 The Hex Plant remains in care and maintenance regime pending a decision on the ultimate future for the facility. Westinghouse is continuing to pursue opportunities to start the plant in the coming years.

6.5 Westinghouse UK was awarded a contract for design and manufacture of 247 Self Shielded Boxes that will be used at for the interim storage of decommissioning material from the First Generation Storage Pond. The number of boxes could increase should

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further safety cases be approved for additional inventory. The commercial team which supports this work is based at Springfields.

6.6 Westinghouse has established a new team at Springfields to support servicing of operating nuclear plants. The group will participate in approximately two years of training globally alongside the existing Westinghouse Operating Plant Business (OPB) teams in locations such as USA, Germany and South Korea, using a range of non-destructive examination (NDE) techniques. Westinghouse intends to establish a centre of excellence for NDE at Springfields, supporting OPB requirements in UK.

Environment, Health & Safety Report

Dave Peacock EHS&Q Director 1. Industrial Safety / Process Safety 1.1 The graph below shows the Site accident performance up to 20th March 2017, together with previous years’ performance for reference.

Springfields Combined Accident Performance (SFL/WEC/Contractors)

100 Minors OSHA DAC Other OSHA Recordable RIDDOR Reportable

89 90

80 76 76 74

70

60 56 51 50 To 20th March 2017

40 35 30 30

20

11 10 6 6 6 6 6 5 4 4 4 4 4 3 3 3 3 2 2 2 1 0 0 0 0 0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

2 Radiological / Nuclear Safety

2.1 Preliminary assessment of doses for both SFL personnel and contractors for 2016 has been provided by the external dosimetry service and confirms a very similar good performance to the previous year.

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Average Dose (mSv) 0.90 Contractors Springfields Fuels Ltd

0.80

0.70

0.60

0.50

0.40

0.30

0.20

0.10

0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2.2 Regulator Visits & Inspections

There have been a number of ONR, EA and HID visits to the Site since the last report. These include:

 ONR planned inspection against Control of Radiological Exposure. Satisfactory

 ONR System inspection of licence conditions Satisfactory

 ONR (Security) witnessed Counter Terrorism Exercise. Satisfactory

 ONR (Safety) undertook review of Fire Audits: Satisfactory .

 ONR (Security) carried out planned inspection on transport. Satisfactory, with minor actions on administrative arrangements.

 ONR (Safety) undertook a REPPIR (Radiation Emergency & Public Preparedness Information Regulations) determination visit, assessed as satisfactory.

 ONR (Security) inspection against the Counter Terrorism Plan. Safisfactory

 ONR (Security) carried out an inspection on Personnel Security. Satisfactory

2 Environmental Safety

There have been a number of EA visits to the Site since the last report. These include:

 Inspection of the Natural Residues Plant – general plant tour and inspection against certain conditions within the Installations Permit (General management, Operating techniques and Emissions to water). The inspection also focussed on residue management following a requirement to agree a temporary increase to the nickel concentration limit. One action required, report did acknowledge number of improvements to the residue process following the issues with Nickel.

 Inspection of Effluent pits and Tank Farm – formal report not yet received however no non- compliances and minor comments regarding housekeeping.

 Inspection of Oil storage facility – inspection was following issues highlighted to the Agency with known historic oil contamination (note: oil is not migrating), Agency was happy with the investigation work carried out and proposed way forward.

Discussions are ongoing with the Agency regarding issue of new radioactive permit which is expected sometime in the new financial year.

The formal report from radioactive waste characterisation audit has now been received, no non- compliances were identified, a number of good practices were highlighted and 6 recommendations were made.

SFL has received a positive opinion from the European Commission on the Article 37 submitted, the submission was for a new Kr-85 aerial limit. A variation for a new Kr-85 limit will now be made to the Agency.

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Socio-Economic Report Alan Beauchamp Communications and Media Relations Manager, Westinghouse Springfields

1 Visits to Springfields

1.1 Community Relations Department has organised the following visits to Springfields over the last six months. Note – due to staff illness, the number of school visits has reduced:-

 14 Educational visits (397 students/teachers)  12 Adults Groups, including visits by Warton History Club, Springfields Retired Employees Association and the Rotary Club of St Annes (158 visitors)  3 work experience placements for local students.

1.2 The site’s nature trail which closed for the winter break at the end of September, reopened on 19 April for the 2017 season for school visits.

2 Stakeholder Relations

2.1 Over the last six months we have had four complaints from members of the public:-

 Reports of piling noises/'booming' during the night. The Shift Manager checked and there were no such noises coming from the site – presumed to be coming from elsewhere.  A local resident complained of 'gas jet noise' between 0300-0600am in the morning. Checked with Shift Manager - there was a large steam leak on a building’s outside gantry level area. The steam leak was attended to and the leak reduced, although further repair was required as soon as possible as this was the third time this valve has leaked. The local resident was called back and the situation explained.  A second local resident also complained about the same ‘gas jet noise’. The resident met the Communications & Media Relations Manager at the Main Gate Reception and the situation was explained.  There was a complaint of overgrown conifer trees on the external car park which were blocking light from the residences across the road. The Estates Manager’s phone number has been given to the local resident to arrange a meeting to discuss the issue. This meeting has taken place and it has been explained that the conifers can not be cut until September due to the environmental protection given to nesting birds.

3. Sponsorship and Donations

3.1 Westinghouse was one of the main sponsors of the Blackpool & Fylde Education Awards which were held in December. Westinghouse sponsored the Inspirational Teaching Award.

3.2 The Springfields Employees’ Medical Research and Charity Trust Fund has supported the following charities in the past few months (payments pending):

Date Description £ Dec 16 MedEquip4Kids – purchase of two specialist chair beds for Approx £2646 Royal Preston Hospital Dec 16 St John’s Hospice, Lancaster – purchase of storage equipment Approx £1377

The Trust Fund does not make monetary donations, but buys items of equipment for medical and charitable organisations.

4. Community and Employee Involvement

4.1 The site charity for 2014-2017was the local heart charity, Heartbeat. Heartbeat supports people who have been affected by heart disease or those who are at high risk of developing it. They are committed to the fight to reduce the impact of heart disease throughout the North West through rehabilitation, information and advice, education and lifestyle support

Heartbeat provide these services from 11 local locations, including Preston, Blackpool, Chorley, and Kirkham.

4.2 At the end of the three year period, employees had raised £18, 975 for Heartbeat.

4.3 The chosen charity for 2017-2019 will be Kidneys for Life. Kidneys for Life supports adults and children in the North West and Cumbria, who have kidney disease and subsequently require treatment.

Kidneys for Life’s main objective is to fund research into kidney disease, dialysis & transplantation to improve the life of those affected by kidney disease. This is especially important for children as they tend to suffer from the rare diseases.

5. Other Issues

5.1 A demonstration/vigil was planned outside the Springfields Main Gate on Saturday 11 March to coincide with the sixth anniversary of the Fukishima accident. The demonstration/vigil was organised by Radiation Free Lakeland. The event passed without any issue; two people attended.

6. Skills Training

6.1 The 2016 intake of apprentices is progressing well. They have all completed Phase 1 - foundation training in January 2017 and have progressed to Phase 2 - advanced training. The Degree Apprentices within this group have had a selected module version of the Phase 2 training before they take up plant placements with electrical and mechanical maintenance teams in the manufacturing areas for the coming 8 months beginning at the start of April.

6.2 The 2017 apprenticeship application process closed on February 17th with around 200 applicants applying for the offered craft and degree apprenticeships. These applicants have been through a shortlisting exercise and a programme of interviews was arranged towards the end of March. From this group will be selected the successful candidates for the SFL positions and will provide a pool of potential apprentices for the partner organisations that use Springfields as a provider of apprenticeships. There are a number of our partner employers who showed early interest in the recruitment of apprentices for the 2017 intake.

6.3 Springfields training provision has been informed by the Skills Funding Agency that it has passed successfully through the due diligence process that training providers were obliged to participate in. This began in October and closed in November 2016 in order that it can appear as a provider on a national Register of Apprenticeship Providers (RoATP) - this in turn allows it to continue to deliver government supported apprenticeships.

6.4 Tom Woods, an apprentice just completing his apprenticeship, won the Springfields apprentice of the year in October 2016 and was entered for the Apprentice of the Year in the maintenance category of the National Skills Academy for Nuclear (NSAN) awards scheme. He was one of three finalists in his category with the winner being announced at a prestigious event in Manchester on 16th March. Unfortunately he narrowly missed out on the top spot but it was a great achievement to get to the final. Another apprentice James Rothwell, trained through the

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Springfields scheme and employed by NNL on the Springfields site, was also a maintenance category finalist.

6.5 The apprentice safety improvement team has made charity donations with their winning allocation from their success in the site’s Rogan Safety Award’ including £500 to the site’s chosen charity Heartbeat that specialises in cardiac rehabilitation

6.6 A selection of apprentices are to deliver a ‘Starting out safely’ presentation at the 2017 annual seminar of the Occupational Health and Safety Group on 21st March.

6.7 There was a high profile visitor to the Training Centre - Seema Kennedy MP for South Ribble and the Parliamentary Chairman for the All – Party committee on Apprenticeships, a cross party group which provides a forum for politicians and employers to discuss how to promote the role of hiring apprentices. She toured the Centre and took the time to chat to a number of apprentices on the various apprenticeship programmes. She was impressed with the facilities and apprentices she met.

Glossary and Abbreviations

AHF Anhydrous hydrofluoric Acid ALARA As Low As reasonably Achievable ALARP As Low As Reasonably Practicable AGR Advanced Gas-cooled Reactor Cogent The sector Skills Council for the Chemicals, Pharmaceuticals, Nuclear, Polymers, Petroleum and Oil & Gas industries COMAH Control of Major Accident Hazards COSHH Control of Substances Hazardous to Health Regulations Customer 1st A Westinghouse internal company initiative intended to improve all-round company performance. CR Community Relations OSHA Occupational Safety & Health Administration (USA) DAC* OSHA Days Away Case (time off due to injury that is certified by a medical practitioner). EA Environment Agency HID Hazardous Industries Directorate LTA* Lost Time Accident LWR Light Water Reactor Hex Uranium Hexafluoride (UF6) HR Human Resources IIP Investors In People ONR Office of Nuclear Regulation Milli Sievert These are units of measurement for radiation dose to individuals. & microSievert 1 Sievert (Sv ) = 1000 Millisievert (mSv) 1 Millisievert (mSv) = 1000 Microsievert (Sv)

NDA Nuclear Decommissioning Authority NNL National Nuclear Laboratory NSAN National Skills Academy Nuclear NSG National Stakeholder Group (Facilitated by the NDA, as an interface between local, national and international stakeholders) PPE Personal Protective Equipment PWR Pressurised Water Reactor (type of LWR reactor) RIDDOR Reporting of Injuries, Diseases & Dangerous Occurrences Regulations RoSPA Royal Society for the Prevention of Accidents SFL Springfields Fuels Ltd TRIR Total Recordable Incidence Rate UAM/AUAM Uranium Asset Management/Advanced Uranium Asset Management UO2 Uranium Dioxide, both powder and granules WEC UK Westinghouse Electric Company UK Ltd * LTA/OSHA DAC - These classifications refer to accidents causing an individual to require time away from work of more than 3 days and 1 day respectively