WASHINGTON, DC Secretary of Energy Bill Richardson today announced that the Department of Energy (DOE) has lifted the compliance order against Fluor Daniel Hanford Inc., the managing contractor of the department's Hanford site in Washington. The order, issued by Secretary Richardson on May 27, 1999, required the contractor to make specific improvements and complete corrective actions by specified dates. Secretary Richardson lifted the order when he was satisfied that the actions were made on a timely basis and were effective.

The compliance order was the first issued under the department's Price-Anderson Nuclear Safety Enforcement program. The order addressed long-standing, unresolved and recurring failures of the contractor to meet quality assurance requirements at the Hanford Spent Nuclear Fuel Project. The order was issued in addition to a Notice of Violation and a $330,000 civil penalty, which has since been paid. The Energy Department had determined that the contractors repeatedly failed to follow the procedures established in their own safety plans to ensure that nuclear safety operations are conducted within appropriate safety margins. Failure to comply with the order could have resulted in additional civil penalties at up to $110,000 per day for each violation.

"This is another example of how the department's enforcement program is working to improve safety at Energy Department sites," said Secretary Richardson. "The message we sent to Fluor Daniel Hanford and all our contractors through the compliance order is that the department will not accept poor performance. That message was clearly heard." Richardson added, "I am especially proud of the team effort between the headquarters enforcement office and the technical staff at the department's Richland Field Office who will continue to oversee the implementation of these actions."

The compliance order required the contractor to take action in four areas:

• A comprehensive review of all Spent Nuclear Fuel Project activities to fully identify and characterize the extent of the issues involved in the notice of violation. This action was completed on schedule, and, as a result, the contractor identified an additional 29 quality problems to be corrected.

• Improved oversight of the subcontractor and strengthening all activities involving nuclear system and component design control and verification. These actions were completed on schedule and resulted in revised procedures and additional training.

• Improved work control processes that ensure that work is properly supervised and conducted in accordance with procedures. This was completed on schedule and resulted in revised procedures, additional training and increased supervision and oversight of work.

• Establishment of a deficiency tracking system and a site-wide corrective action management process. These actions were completed on schedule.

The Energy Department has reviewed each of these areas and determined that the actions were satisfactorily completed. The Richland Operations Office will continue to monitor the effectiveness of the corrective actions.

The Hanford Spent Nuclear Fuel Project's goal is to stabilize and move more than 2,300 tons of spent nuclear fuel from the aging K-Basins storage pools to new, more secure storage facilities.

Copies of the consent order and associated materials are available on the Internet at http://www.eh.doe.gov/enforce.

News Media Contact:
Erik Olds, 509/372-8656
Jeff Sherwood, 202/586-5806

Release No. R-99-326