Decommissioning/Demolition: Overview of Demolition Management Process. Timothy R. Cook Golder Associates Inc.

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Magnus Hansen
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1 Decommissioning/Demolition: Overview of Demolition Management Process Timothy R. Cook Golder Associates Inc. Plant Closure Workshop November 12, 2009

2 Background Golder Associates Inc. conducted a study for the Electric Power Research Institute and Exelon to document a systematic approach to decommissioning fossil-fueled power plants. Publication is forthcoming for the report on the study, titled Decommissioning Process for Fossil- Fueled Power Plants. Intent is to provide the Owner or Operator of a plant nearing the end of its operational life with an overview of the key elements necessary to successfully implement a decommissioning project. Objectives for decommissioned site: Minimal risk to health & safety Minimal environmental impacts Compliance with laws Suitable for post-decommissioning Minimal liability to present or land use objective future owners Aesthetically acceptable to community Staged Approach to Decommissioning.

enhancement, cost management, and aligning project scope with their business

3 Staged Approach ( objective driven ) Helps Owners manage the process of facility closure with an emphasis on strategic planning, liability management, safety enhancement, cost management, and aligning project scope with their business objectives. 1 Project Framing 2 Site Characterization 3 Rem. & Rec. Planning 4 Implementation 5 Project Closure

4 Terminology Decommissioning: To render a plant or building inert Demolition: Removal of aboveground and underground structures Other common terms: Deactivation Deconstruction Abatement Remediation Closure Dismantling

5 Value to Owner Staged Approach to Decommissioning / Demolition Process Management Safety programs are strictly followed Cost certainty Contractor contingency is reduced by minimizing unknowns Maximizes asset value returned to Owner Contractor is responsible but fail-safe gates are in-place Owner has assurance of proper waste management Owner and Contractor share in public/agency relations

The Decommissioning / Demolition Management Process 1 2 3 4 5 1. Strategic Planning: Information to allow decision-making and set-up 2.

6 The Decommissioning / Demolition Management Process Strategic Planning: Information to allow decision-making and set-up 2. Pre-Work Preparation: Technical and contractual preparatory tasks to facilitate successful implementation 3. Project Implementation: Execution and project control / compliance 4. Project Closure: Documentation

7 Step 1 - Strategic Planning End use scenarios / exit strategies Project estimating / value-understanding Asset evaluation - redeployment or sale Historical use research - site use history Contract Set-up HR & PR issues / Permitting Sequencing and Prioritizing tasks and developing timelines

Focus on: End use scenario / exit strategies Basis for all key decisions! What is the business transaction? What is the overall objective of demolishing site?

8 Focus on: End use scenario / exit strategies Basis for all key decisions! What is the business transaction? What is the overall objective of demolishing site? Considerations for Owner: marketability, utilities, safety, liability, PR, environmental, holding costs, corporate protocols, labor (union) issues, site use history, long-term security Obtain consensus of stakeholders Describe / show how site will look at end

Example Closed Manufacturing Facility, Midwest (US) 4.7M square feet under roof, operated from 1950s to 2007. Site still heated, managed, and maintained despite no plans for re-use.

9 Example Closed Manufacturing Facility, Midwest (US) 4.7M square feet under roof, operated from 1950s to Site still heated, managed, and maintained despite no plans for re-use. Owner s exit strategy was not developed Fluctuating real estate and scrap metal markets complicated unstructured planning by Owner. Golder compiled pertinent information (holding costs and action costs) and prepared in a structured matrix format to better evaluate exit strategy options. Completed a value analysis of each end use scenario for 2, 4, and 8 year projections. Owner used information for making business decision and forward planning. The Key is to know what information is needed to obtain the best scenario snapshot without incurring extensive investigations and engineering fees.

Step 2 Pre-Work Preparation Regulated Materials Survey (aka haz-mat survey ) Environmental Site Assessments (surface / subsurface) Engineering: Utilities, storm management, permitting, etc.

10 Step 2 Pre-Work Preparation Regulated Materials Survey (aka haz-mat survey ) Environmental Site Assessments (surface / subsurface) Engineering: Utilities, storm management, permitting, etc. Contract documents and technical specifications for work ( performance-based ) Contractor procurement Evaluation of contractor bids Understand governing laws and ordinances Develop integrated plan for remedial actions

Step 3 Project Implementation Contractor submittal review Document contractor compliance with specifications and regulations Liaise with agencies and public

11 Step 3 Project Implementation Contractor submittal review Document contractor compliance with specifications and regulations Liaise with agencies and public on behalf of Owner Review of waste management records Administrative assistance and data management Inspections: environmental clearance and general completion

12 Step 4 Project Closure Contractor permit close-outs / regulatory reporting Document As-built surface and subsurface conditions Archive waste management records Project closure report synopsis of major project activities Facilitates transition into property end use

13 Topics for Further Research Decommissioning / demolition cost estimating tool (experience based) End-use scenario value analysis tool Asset portfolio prioritization tool

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