Blue Grass Chemical Agent-Destruction Pilot Plant Quarterly Update

March 12, 2014

Presented to:

Kentucky Chemical Demilitarization Citizens’ Advisory Commission and Chemical Destruction Community Advisory Board

Presented by:

Jeff Brubaker Doug OmichinskiSite Project Manager Project Manager

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Northwestern Corner - Observation Point

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Hydrolysate Storage Area

Control and Support Building

Munitions Demilitarization Building (MDB) Filter Banks

MDB

Utility Building

Supercritical Water Oxidation Building (not visible in photo)

Laboratory Building (not visible in photo)

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Blue Grass Chemical Agent-Destruction Pilot Plant Construction Site (March 2014)

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Blue Grass Updates

Construction now more than 80 percent complete

Systemization activities now more than 15 percent complete

Installation of Standby Diesel Generators Beneficial occupancy of Control and

Support Building Continued painting of Hydrolysate Storage

Area tanks and start of insulation Mobilization of Entry Control Facility

subcontractor Continuing installation of Munitions

Demilitarization Building filter area ductwork including connection to the Clean-Air Exhaust Stacks

Placement and energization of back-up batteries in the Control and Support Building

A team of project workers place the bottom half of one of the two Clean-Air Exhaust Stacks. In operations, these stacks will release cleaned, filtered and monitored facility air back to the environment.

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Main Processing Facilities

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Systemization team members inspect electrical panels inside the Control and Support Building (CSB).

Workers prepare interior walls in the Supercritical

Water Oxidation Processing Building.

An ironworker welds a fragmentation plate inside aMunitions Demilitarization Building blast proof room.

Electricians install back up battery systems inside the CSB.

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Support Facilities and Infrastructure

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Hydrolysate Storage Area tank construction is completeand painting and insulation work is underway.

A utility pipe rack now circumnavigates the Utility

Building as support infrastructure work continues.

Utility Building air handling units and dryers are installed and ready for systemization activities.

An electrician verifies a “lock-out/tag-out” of an energized Utility Building system.

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Safety Performance

12-month rolling rate

Accidents per 200,000 job hours

Occupational Safety and Health Administration Voluntary Protection Program Star Status site

Lost-time injury rate is 87 percent lower and recordable injury rate is 61 percent lower than industry average

As of January 31, 2014, the project has completed 661,376 hours and 95 days without a lost-time accident

Occupational Safety and Health Administration Voluntary Protection Program Star Status site

Lost-time injury rate is 87 percent lower and recordable injury rate is 61 percent lower than industry average

As of January 31, 2014, the project has completed 661,376 hours and 95 days without a lost-time accident

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1.11.26

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Recordable Injuries Lost-Time Injuries

Construction IndustryBechtel Parsons

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Current Project Staffing

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Total project employment―1,340

Richmond, Ky.―1,333― Nonmanual―671― Craft―669― Local hires―58 percent

Other locations―7― San Diego, Calif.― Columbus, Ohio― Reston, Va.

There are 669 local union building and construction trades craft workers safely working at the Blue Grass Chemical Agent-Destruction Pilot Plant.

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Hiring a Local Workforce

Bechtel Parsons Blue Grass

Workforce in Richmond, KentuckyWorkforce includes manual and non-manual employees

Note 1:Local: Metropolitan Statistical Areas (MSAs) and the small business advocacy program include the following counties:

Madison, Woodford, Fayette, Scott, Bourbon, Clark, Jessamine and Rockcastle. MSAs are defined by the Bureau of Labor Statistics.

Note 2: Manual employees are hired through the local Union Hall in Lexington, Kentucky.

Local58%

Outside of Kentucky

40%

Rest of Kentucky2%

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Valuing a Diverse Workforce

BPBG – Non-Manual Workforce Kentucky Population

Source: U.S. Census Bureau, 2010

Source: U.S. Census Bureau, 2010

KentuckyArchitecture and Engineering

BPBG – Non-Manual Workforce

Caucasian88%

Minority12%

Male79%

Female21%

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Moving Forward

Ironworkers install a platform on one of the Supercritical Water Oxidation reactors using an innovative “spider crane.” This crane can lift three tons, but also folds down to pass through doorways.

Safety is highly important at the Blue Grass plant. An electrician prepares warning signs for an upcoming task area.

Munitions Demilitarization Building major electrical, piping and instrumentation installations

Construction of Supercritical Water Oxidation Processing Building effluent tanks

Utility Building internal systems turned over to systemization personnel and energized

Start of Entry Control Facility construction

Start of Container Handling Building construction

Start of Medical Facility construction

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Questions/Discussion

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For more information about the Blue Grass Chemical Agent-Destruction Pilot Plant project, please contact the Blue Grass Chemical Stockpile Outreach Office at (859) 626-8944.