DOE AND USEC AT ODDS OVER HOW TO RETURN PADUCAH PLANT

USEC and the Department of Energy are at odds over the how to de-lease the Paducah Gaseous Diffusion Plant, according to a USEC financial filing posted this week. After ceasing operations at the plant this summer, in August USEC gave DOE its required two-year notice to give up its lease to the plant. But the company hopes to return parts of the facility before then— USEC says it generally has the right to a “partial de-lease” of the plant. “However, limitations on available funding to DOE in light of federal budget constraints and spending cuts could limit DOE’s willingness to accept the return of areas that USEC wishes to de-lease on a timely basis,” states a Nov. 5 USEC Securities and Exchange Commission Filing. “In addition, while DOE has stated that it continues to be willing to work with USEC to develop a transition plan and schedule for the safe and secure return of the Paducah GDP, DOE has taken the position that USEC is foreclosed from invoking its rights to a partial return of facilities under the lease.”

The company warned that the issues could grow around the return of the plant. “USEC strongly disagrees with this DOE position. Disputes could also arise regarding the requirements of the lease and responsibility for associated turnover costs,” the filing states.