Attachment 3 Holding Agreement for 165 MT LEU Reserve.pdf

Section J, Attachment 2

HOLDING AGREEMENT

March 10, 2020

This HOLDING AGREEMENT (“Agreement”) provides supplemental requirements of this Contract No. _________ for the storage of Government-owned LEU.

ARTICLE I. ESTABLISHMENT OF GOVERNMENT’S LEU ACCOUNT

In accordance with the Contract, the Contractor shall store Derived LEU and make available to the Government in accordance with ARTICLE IV below the quantity of unencumbered and unobligated LEU in the form of UF6 meeting the ASTM specification C996-04E1. The Contractor shall establish an account in the name and for the benefit of the Government which represents the quantities of Government-owned unencumbered and unobligated LEU (Government LEU Account). The

Government LEU Account will be credited and debited, in accordance with the

Contract and ARTICLE IV below.

ARTICLE II. CONTRACTOR’S RIGHT TO USE LEU

Subject to the terms of this Contract No. ______________ and this Agreement, the

Contractor may use as working stock the Government LEU in the Government’s LEU

Account that shall be physically maintained at the Contractor’s facility or facilities in accordance with ARTICLE IV below. The Government acknowledges that the

Government LEU is fungible, may exist in various chemical forms at various times, and that the Contractor is not required to maintain, identify, or allocate separate physical inventories of the Government LEU. The Government agrees that the

Government LEU may be commingled with the Contractor’s working stock inventory of LEU. The Contractor shall ensure that no other party has title to or any other interest conflicting with the Government’s title to the Government LEU. The

Contractor agrees to maintain the Government LEU within the United States at all times. The Contractor shall not sell, transfer, barter, or otherwise dispose of the

Government LEU. The Contractor shall not exchange or “book transfer” the

Government LEU for non-U.S. LEU located outside of the United States. Nothing in this ARTICLE II, however, shall require the Contractor to obtain Contracting Officer approval for performing uranium exchanges or book transfers, so long as the uranium contained in the Government’s LEU Account remains within the United States and the Contractor ensures that LEU equivalent to 100% of the Government account be maintained as unencumbered and unobligated LEU.

While use of the Government LEU is permitted, provided it is used in accordance with this Agreement and other applicable Contract clauses, such usage does not constitute an activity for which Clause I. Clause 952.250-70 NUCLEAR HAZARDS

INDEMNITY AGREEMENT(DEVIATION) (JUN 1996) applies.

ARTICLE III. INSURANCE

Section J, Attachment 2

The Contractor shall maintain, at all times when it has possession, custody, or control of Government-owned LEU or other assets under this Agreement, insurance that complies with NRC regulation.

ARTICLE IV. QUANTITY AND SCHEDULE

The Contractor shall physically store and maintain the Government LEU in the

Government LEU Account at its facility, which shall be in the United States, during the term of this contract.

Withdrawals from the Government LEU Account will be accomplished by the COR providing written direction to the Contractor, with a copy to the CO. Within 120 days of receipt of written direction from the COR, the Contractor shall have available for

Physical Delivery to the Government or its designee up to forty-three (43) MTU of

LEU in the form of UF6 in Contractor-furnished industry standard cylinders and over-packs. Up to 100% of the LEU in the Government LEU Account shall be available for

Physical Delivery in the form of UF6 within 18 months after receipt of the first written direction from the Government. The process of providing UF6 in accordance with the specification from the Government LEU Account shall continue until the

Government has taken custody of all LEU in the Government LEU Account.

UF6 delivered to the Government or its designee shall not contain any foreign obligations, and it shall not contain any policy restriction that would prevent its use in tritium reactors, such as LEU derived by down-blending HEU declared surplus in

1994.

With each LEU delivery to the Government, the Contractor shall balance the

Government LEU Account based on SWU and feed component delivered to the

Government and remaining in the Government LEU account. Before the last delivery, the Government and the Contractor will negotiate settlement to ensure there will be no residual amounts of remaining feed and/or SWU.

ARTICLE V. WARRANTY

Pursuant to “DOE-E-2001 Inspection and Acceptance (OCT 2014)” in Section E of the contract and this Agreement, the UF6 released hereunder by the Contractor shall conform to the ASTM specification C996-04E1.

ARTICLE VI. CERTIFICATIONS

The Contractor will certify annually by an authorized official in annual reporting to

DOE that LEU is being stored in compliance with this Agreement.