- 7 (h) Approximately six months prior to the end of the term of the arrangement referred to in c. above, or at such earlier time as the parties may agree to, TVA will determine whether or not it will offer to take ownership of the demonstration plant. If the determination is in the affirmative TVA will be prepared to pay for the facility on the basis of certain agreed criteria, and the payment will be applied to project costs unless the parties otherwise agree. If (after consulting with PMC and BRC) ERDA disagrees with TVA's conclusion respecting the monetary value of the facility, it will notify TVA accordingly, and the parties will confer on the situation. In the event the disagreement is not resolved, or in the event TVA does not decide to take ownership of the facility, ERDA will retain title to and custody of the demonstration plant. If and when TVA takes title to the facility, TVA shall have the obligation of dismantling or decommissioning or removal of the facility, provided, however, that until such event occurs, ERDA shall have the right to use and dispose of said property as it deems advisable from the standpoint of its programs, and further, shall have the right to require TVA to operate the plant at ERDA's expense and upon terms and conditions provided for in the definitive contracts or otherwise to arrange for operation at ERDA's expense and upon terms and conditions satisfactory to TVA. (i) Termination of the project prior to the end of the term specified in c. above may be effected only in accordance with certain criteria. There will be no unilateral right on the part of PMC, CE, TVA, or BRC to terminate the project. The bases for termination will include (i) failure to secure any necessary governmental permit, authorization or approval required for the construction or operation of the demonstration plant or exemption therefrom, despite the best efforts of TVA and ERDA, (ii) nonsatisfaction of the conditions mentioned in a. above, (iii) despite the best efforts of TVA and ERDA, nonobtainment of indemnification coverage under or substantially comparable to that now provided by Section 170 of the Atomic Energy Act of 1954, as amended, (iv) insufficiency of project funds to permit the effective conduct of the project, including anticipated commitments and contingencies, (v) prevention of proceeding to conclusion with the project by a final court injunction or administrative order, (vi) for technical or environmental reasons it is concluded that the essential project objectives cannot be attained, or (vii) failure to reach agreement on significant changes in approved reference design. (j) All applicable laws and regulations, including those pertaining to the Nuclear Regulatory Commission (NRC) licensing and regulations, will be complied with. (k) A mutually agreeable procedure for resolving disagreements will be specified in the PMC-ERDA contract. (1) The presently estimated cost of the demonstration plant is shown in Attachment A hereto. This estimate will be subject to revision from time to time to the extent additional information indicates that such revisions are appropriate. Development, systems engineering, prototype, testing and plant operations Furnished special nuclear material___ Utility contributions___. $1,240 1496 1, 736 1,092 366 10 258 Expected contributions from reactor manufacturers_. Total estimated project resources_. 10 1,736 1 Escalation based on an average annual rate of 8 percent; estimate in 1974 dollars. B. DESCRIPTION OF PROPOSED PROJECT 1. PRINCIPAL UNDERLYING AIMS (a) This demonstration plant project is an indispensable part of ERDA's overall, long-range LMFBR research and development program which has as a major objective the development of the LMFBR concept to the stage of commercial usefulness. (b) ERDA's base LMFBR program is and will be important to the success of this demonstration plant project. (c) The construction and demonstration-operation of the LMFBR demonstration plant on an electric utility system will help demonstrate the potential value and environmental desirability of the LMFBR concept as a practical future source of electric power and provide valuable information, data, and experience. 2. LOCATION TVA will make available, for the site of the demonstration plant, a portion of a tract of land (now owned by TVA) near Oak Ridge, Tennessee, on the Clinch River. The land is on a peninsula located in Roane County on the north bank of Watts Bar Lake; it borders on the boundary of ERDA's Oak Ridge property. The tract encompasses an area of approximately 1364 acres. The demonstration plant will be located in a manner permitting possible future power plant additions on the tract. 3. TECHNICAL DESCRIPTION OF THE DEMONSTRATION PLANT The LMFBR demonstration plant will be an integrated electric power plant and will include (a) a liquid sodium cooled reactor and steam generation system; (b) a steam turbine driven electric generation system; (c) heat rejection system; (d) electrical switch yard; and (e) related auxiliaries and supporting structures and facilities. The overall steam cycle will be similar to that of modern conventional steam-electric power plants. Design guidelines for the demonstration plant stress maximum use of existing technology to reduce technical risks and assure safe, reliable operation. The plant will be designed to operate reliably, safely and with minimum environmental effects in compliance with these guidelines. The design effort will be supported by a strong research and development program with significant emphasis on prooftesting. Major objectives will be to (1) demonstrate the technical performance, reliability, maintainability, safety, environmental acceptability and economic feasibility in a utility environment of an LMFBR central electric power station and (2) confirm the value of this concept for conserving important non-renewable natural resources. Accordingly, the manner in which the demonstration plant is operated, after the initial period of start-up and testing, will be as similar as practicable to the commercial LMFBR plants that are expected to be in operation in the 1980's. 4. CHANGES OR SUPPLEMENTS The ERDA reserves the right, without qualification, to change or supplement these criteria in writing, at any time or times, as it may deem appropriate in the best interests of the Project. The specific design for the first demonstration plant has been selected and it is expected that the following several approximate design parameters will be included: |