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Springfields Site Stakeholder Group Site Reports – April 2016 Contents Business Report 2 Environment, Health & Safety Report 6 Socio-Economic Report 8 Glossary and Abbreviations 11 Springfields Fuels Limited Springfields, Salwick, Preston, PR4 OXJ

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SpringfieldsSite Stakeholder Group

Site Reports – April 2016

Contents

Business Report 2

Environment, Health & Safety Report 6

Socio-Economic Report 8

Glossary and Abbreviations 11

Springfields Fuels Limited

Springfields, Salwick, Preston, PR4 OXJ

T+44 (0) 1772 762000

ww w . westinghousenuclear.com/springfields

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Business ReportMick GornallManaging Director

1 Environmental, Health, Safety & Quality – Highlights

1.1 As of 25 March 2016, Springfields employees have worked 66 days without an industrial safety accident that resulted in a days-away case.

1.2 A RIDDOR Reportable accident (absence >7 days) took place in January 2016. The injured party was working within a glove box in A633 when a tamping tool, used to push product through a grate, fell approximately 8” (from where it was stored) onto their left hand middle finger. A subsequent x-ray identified a fracture to their finger tip.

1.3 While Springfields aspire to zero accidents, the number of recordable injuries for 2015/16 (total 2) was half of the improvement target, which was set at 4. This is an improving trend.

1.4 With regard to the Part A notification sent to the Environment Agency on 27 July 2015 concerning a battery incorrectly consigned in some waste from SFL that was about to be off-loaded at Clifton Marsh, SFL has now received a formal Warning Letter from the EA.

1.5 With regard to the Part A notification sent to the EA on 2 September 2015 concerning the non-representative sampling of the Site Trade Effluent discharge, no response has yet been made by the EA.

1.6 On 11 February 2016 a Part A Notification was sent to the EA concerning the failure to collect and analyse the required number of weekly rainfall samples.

1.7 SFL have received a copy of the draft consolidated EPR Permit from the EA which incorporates the partial surrender for the removal of the Magnox production facilities from the Permit. This is in line with Magnox cessation and the associated building decommissioning timeline.

2 Operational

2.1 The 31 March brought to a close the 2015/16 financial year, during which the production of Advanced Gas-Cooled Reactor (AGR) fuel was completed as planned, and all 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.

LWR (Light Water Reactor) fuel manufacturing has now been operating for over three years at Springfields, 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 currently being manufactured) the LWR production facility has been modified to accommodate this requirement. The programme of work is nearing completion with the process and product qualification activities progressing to schedule.

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

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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 now 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.

3 Uranium Recovery

3.1        All Nuclear Decommissioning 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        Characterisation of material from RSRL has been successfully completed and pre-processing

is now well underway. The NDA are currently reviewing whether additional deliveries from RSRL and DSRL align with their strategy. International opportunities for Uranium Recovery continue to be explored to off-set any decline in UK business.

  3.3        As noted in previous reports, obsolete cylinders have been brought into an internal store. The

project to enable the final population of the cylinders to be processed is now in active commissioning and is progressing well.

4 Decommissioning

4.1 A284 Line 1 (Hex) DecommissioningThis project is now complete, including remediation and removal of all slabs, sub-structures and in-ground contamination.

4.2 A331 (Magnox Assembly) DecommissioningDe-planting and decommissioning of the A331 Magnox Assembly plant has continued to progress to schedule. All former Magnox areas of the building are now largely complete, with the recent focus moving to the former AGR areas including removal of redundant ventilation ducting and decontamination of the building fabric.

4.3 Contaminated Land ManagementNo issues – the 2015/16 programme of routine sampling and monitoring has been progressed to schedule. In addition, investigative work has continued at the east side of site to survey and sample the contents of the historic drainage network in the area with specific reference to its potential impact on downward flow into Deepdale Brook. 

4.4 A326 (Archive and Criticality Assembly)Temporary supplies have been successfully installed and commissioned to maintain services to the adjoining A88 Main Workshop. Demolition work has now commenced on A326, with the work (including removal of floor slab) scheduled to be complete in early summer 2016.

4.5 A336 Chemical PlantThe decommissioning schedules and strategies for A336 plant closure and de-planting continue to be developed. Subject to security the required NDA funding it is anticipated that

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initial de-planting will commence in autumn 2016.

5 Employees

5.1        Following the successful recruitment of graduates and apprentices in 2015, recruitment campaigns are underway to recruit 10 apprentices (mix of Advanced and Higher) and 5 graduates. It is important to bring new blood into the organisation even though the company continues to reduce its number of employees overall in the UK.

5.2        By the end of the financial year a total of 56 employees will have left the company since the last meeting. Some employees have transitioned into new roles, some of which are supporting the wider Westinghouse organisation including looking at growth opportunities in the UK. Some of our employees have supported Westinghouse projects at power stations both in the UK and in other international locations such as Korea.

5.3        The annual safety awards event was held on 6 November 2015, recognising those employees who have made improvements in safety and demonstrated effective use of Human Performance tools. The speakers were Professor Sir Carey Cooper, CBE who gave a presentation on Workplace Wellbeing and Stress and Lesley Smith-Payne who spoke about Health and Wellbeing and the Health and Wellbeing Strategy for Blackpool Teaching Hospitals NHS Foundation Trust. The site continues to maintain and improve on its excellent safety record with all employees attending an annual safety workshop as well as being involved in local improvement teams.

5.4 The site transformation team, consisting of senior executives and union convenors continue to work on projects together 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.

6 Commercial

6.1        The recent announcement by EDF Energy of extension of the AGR stations at Hartlepool, Heysham and Torness by between 5 and 7 years provides additional years of AGR fuel supply from Springfields, with all 7 stations due to operate until 2023 and the final AGR station is now expected to close in 2030.

6.2       The Hex Plant remains in care and maintenance regime pending any final decisions on the ultimate future for the facility. Westinghouse is continuing to pursue opportunities to start the plant in the coming years.

6.3       Westinghouse has decided to relocate its staff from its Chorley office to Springfields. The UK has been identified as a significant growth opportunity for Westinghouse that could be delivered by combining the strengths of all four product lines and utilizing Springfields as its UK centre. The UK is the only country outside the USA which has all four Westinghouse product lines in operation – Nuclear Fuel, New Plants (reactors), Operating Plants and Decommissioning. Currently all of these operations are run from different locations across the country.

6.4       Westinghouse has announced that it is working with the United Kingdom’s Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC) to explore the most effective way to

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manufacture Westinghouse Small Modular Reactor (SMR) Reactor Pressure Vessels (RPV) in the UK. This announcement further signals Westinghouse’s commitment to SMR technology in the UK, with any fuel being made at Springfields. In 2015 Westinghouse has bid to partner with the UK Government to deploy Westinghouse’s Small Modular Reactor technology – a move that would advance the UK from buyer to global provider of the latest nuclear energy technology.

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Environment, Health & Safety ReportDave PeacockEHS&Q Director1. Industrial Safety / Process Safety

1.%2% The graph below shows the Site accident performance up to 29th March 2016, together with previous years’ performance for reference.

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2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

Springfields Combined Accident Performance (SFL/WEC/Contractors)

Minors OSHA DAC Other OSHA Recordable RIDDOR Reportable

To 29/3/16

2 Radiological / Nuclear Safety

2.1 The annual dose received by both SFL personnel and contractors for 2015 continues to show a year on year reduction over the past 5 years.

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Average Dose (mSv)Contractors Springfields Fuels Ltd

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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 (Safety) – Public Health England carried out a Site Perimeter Dose Survey. No issues were identified.

ONR (Safety) – Observation of Emergency Arrangements via Level 1 and 2 Site Exercise. Minor points were raised for consideration.

ONR (RMT) – Review of Type 3575 Transport Package. No issues raised. ONR (CNS) – Review of outstanding actions from ongoing projects. ONR (Safety) – Management of Change/Vulnerabilities. No issues raised. ONR (Safety) – Review of Capability Maps. No issues raised.. ONR (RMT) – Review Type 3575 Transport Package QA. No issues raised.. ONR (Safety) – Inspection of the commissioning activities for the XJPC plant. Examples of

good practice identified and no issues raised. ONR (Fire) Inspection of OFC. Some areas for improvement on arrangements were

identified. A programme of actions to resolve these issues was agreed with ONR. ONR (Safety) – Inspection of LC36 Arrangements for NNL operations in A709. No issues

raised. ONR (CNS) – Inspection of Guard Force and Security Projects. ONR (Safety) – Inspection of decommissioning LC35 arrangements. No issues raised. ONR (Safety) – Review of source disposal and source store. No issues raised. HID/EA – Human Factors inspection. Some general recommendations were raised. HID/EA – Aging Plant Inspection deemed satisfactory.

3 Environmental Safety

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

Discussions regarding the SFL submission of arrangements for Corporate Radioactive Waste Advisor status.

Inspection of Chemical and Metallurgical Services (CMSD) facilities. No issues raised. Follow up inspection regarding the actions raised from a previous inspection on

Radioactive Waste Management arrangements. Progress deemed satisfactory. Inspection of old Magnox facilities as part of the partial ‘Surrender’ process with regard to

the Site EPR permit.

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Socio-Economic ReportAlan BeauchampCommunications 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:

26 Educational visits (660 students/teachers /Uniform Groups) 5 Adults Groups, including visits by Hinkley Point and Heysham tour guides (82 visitors) 2 work experience placements for local students, placements have been affected by Via Partnership going into administration

1.2 The site’s nature trail opened for school visits on 4 April following the winter break.

2 Stakeholder Relations

2.1 Over the last 6 months we have had two complaints from members of the public:-

A complaint regarding the volume of the site’s criticality alarm was received from a resident living opposite the external car park. The complaint was investigated and it transpired that following maintenance work on the alarm system, the volume had inadvertently been increased. It was subsequently returned to normal volume.

A complaint was received regarding flooding to an adjacent field north of the site by a local farmer. Investigations confirmed that any flood water on site is directed to site drains and would not have contributed to the flooding in the field. However, following a meeting with the farmer it was agreed that Westinghouse would engage their external contractor to check for any blockages along Deepdale Brook off site and assist with clearing if it was required.

3. Sponsorship and Donations

The main sponsorship during the last six months has been support for the Rotary Technology Tournament 2016. Events are held across Lancashire to promote technology to highlight the role of technology and the future job opportunities for students.

Westinghouse Springfields attended the Blackpool Gazette Education Awards at Blackpool Tower in November to present the Inspired Teacher Award, which was sponsored by the site

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

Date Description £Sept-15 Bowland Pennine Mountain Rescue 1,600.00Oct-15 Newlife – Foundation for Disabled Children 1,680.00Nov-15 Autism Initiatives 3,084.00Dec-15 Rosemere Cancer Foundation 3,341.00Jan-16 Guide Dogs Association 3,200.00Mar-16 New Longton Community Responders 2,340.00Mar-16 The Lullaby Trust 2,760.00

18,005.00

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

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The various winners of the Westinghouse Springfields Annual Rogan Safety Competition receive prize money to the value of £2,000. The prize money is made available to the winners for donations to charities of their choice. During January the prize money was distributed to eight charities including Rosemere Cancer Foundation, MacMillan Cancer, Air Ambulance and The Salvation Army

4 Community and Employee Involvement

The site charity for 2014-2017 is 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.

To date Springfields employees have raised over £13,500 for Heartbeat, including over £1,600 raised by the site’s apprentices who organised a Christmas raffle.

Heartbeat has recently set up a pilot screening scheme for young people in conjunction with the Lancashire Junior Football League. The pilot scheme will provide testing for young people between 14 and 16 years of age to identify those at risk of heart disease, and in doing so reduce the number of sudden cardiac deaths. Each week in the UK 12 young people die suddenly from a previously undiagnosed heart condition. Through Heartbeat’s pilot programme and Westinghouse employees’ support, 200 young people will be provided with testing that can diagnose most cardiac abnormalities. The programme will involve ECG (electrocardiograph) screening – a quick, non-invasive test which shows the electrical activity of the heart. When combined with screening questions it provides a way of assessing a large number of the conditions which cause sudden cardiac death in athletes.

5. Investors in People (IIP)

Westinghouse Springfields was reassessed against the Investors In People accreditation in February and was successfully awarded the standard for a further three years. IIP relates to how a company demonstrates effectiveness through its employees and encompasses all aspects of business, from strategy through leadership, people management, learning & development, performance measurement and continuous improvement.

6. Other Issues

A memorial garden, in memory of Springfields employees who have died in service, was opened in March. The area includes a walled seating area and landscaped gardens in a remote area of site, providing a private and secluded setting for quiet contemplation.

This year is the 70th Anniversary of Springfields as a nuclear fuel manufacturing plant. There are no major celebrations planned to mark the anniversary, however, the following activities are planned:

- Monthly articles in the employee newsletter featuring the history of the site.- Special presentation to employees on the history of fuel manufacturing.- Commemorative gift – pictorial notebook – for each employee.- Linking the site’s 70th anniversary with Westinghouse’s 130th anniversary- Special ‘Memory Lane’ features planned for the Blackpool Gazette and the

Lancashire Evening Post.

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7. Skills Training

7.1 The 2012 cohort of apprentices have all now completed on or before their planned end date with an overall retention and achievement of 92% for both respectively. They have all been retained by their companies to assume craft roles. Congratulations on their achievement and we wish them well in their careers.

7.2 Recruitment of apprentices for Westinghouse Springfields is underway, the opportunities are five higher/degree apprenticeship places and five craft places. Testing and interviews are planned for the coming months. We are also in touch with customers to understand their requirements for the next intake.

7.3 The recruitment season is starting for next year with Springfields instructors and volunteer apprentices attending school careers events to promote what Springfields has to offer in engineering apprenticeships. These are usually focused on Year 11 pupils.

7.4 Mark Menzies, MP for the Fylde, was on site in January in discussions with Managing Director, Mick Gornall. He also took the opportunity to visit the apprentice training centre to view the facilities for training young engineers and chatted to some of the apprentices as he toured the centre. Mr Menzies said “it was clear during my visit that apprentices were extremely engaged with what they are learning and that they are keen to become some of the next generation of world class British engineers”.

7.5 Christmas apprentice fund raising activities were extremely successful, with their annual Christmas raffle pulling in a massive £1,600. Apprentices touted for raffle sales in the offices and on patrol in the Costa Cafes. Prices for the lucky winners included an iPad Air 2. Proceeds were donated to the site sponsored charity, Heartbeat.

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Glossary and Abbreviations

AHF Anhydrous hydrofluoric Acid ALARA As Low As reasonably Achievable ALARP As Low As Reasonably Practicable AGR Advanced Gas-cooled ReactorCogent The sector Skills Council for the Chemicals,

Pharmaceuticals, Nuclear, Polymers, Petroleum and Oil & Gas industries

COSHH Control of Substances Hazardous to Health RegulationsCustomer 1st A Westinghouse internal company initiative intended

to improve all-round company performance.

CR Community RelationsOSHA Occupational Safety & Health Administration (USA)

DAC OSHA Days Away Case (time off due to injury that is certified by a medical practitioner).

LWR Light Water ReactorHex Uranium Hexafluoride (UF6)HR Human ResourcesIIP Investors In People

Milli Sievert& microSievert

These are units of measurement for radiation dose to individuals.

1 Sievert (Sv )= 1000 Millisievert (mSv) 1 Millisievert (mSv) = 1000 Microsievert (Sv)

NDA Nuclear Decommissioning AuthorityNNL National Nuclear LaboratoryNSAN National Skills Academy NuclearNSG National Stakeholder Group (Facilitated by the NDA,

as an interface between local, national and international stakeholders)

PWR Pressurised Water Reactor (type of LWR reactor)RIDDOR Reporting of Injuries, Diseases & Dangerous Occurrences

RegulationsRoSPA Royal Society for the Prevention of AccidentsSFL Springfields Fuels LtdTRIR Total Recordable Incidence RateUAM Uranium Asset Management

UO2 Uranium Dioxide, both powder and granules

WEC UK Westinghouse Electric Company UK Ltd