Timothy R. CookGolder Associates Inc.
Plant Closure Workshop November 12, 2009
Decommissioning/Demolition:Overview of Demolition Management Process
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• Compliance with laws• Minimal liability to present or future owners
• Minimal environmental impacts• Suitable for post-decommissioning land use objective• Aesthetically acceptable to community
Staged Approach to Decommissioning.
Staged Approach ( objective driven )
Helps Owners manage the “process” of facility closure with anemphasis on strategic planning, liability management, safetyenhancement, cost management, and aligning project scope withtheir business objectives.
1Project Framing
2Site Characterization
3Rem. & Rec. Planning
5Project Closure
4Implementation
Terminology
Decommissioning:To render a plant or building “inert”
Demolition:Removal of aboveground and underground structures
Other common terms:DeactivationDeconstructionAbatementRemediationClosureDismantling
Staged Approach to Decommissioning / Demolition Process Management
Value to Owner Safety programs are strictly followedCost certaintyContractor contingency is reduced by minimizingunknownsMaximizes asset value returned to Owner Contractor is responsible but “fail-safe” gates arein-placeOwner has assurance of proper waste managementOwner and Contractor share in public/agency relations
The Decommissioning / Demolition Management “Process”
1. 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
1
2 3
4
5
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 anddeveloping 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? Considerations for Owner: marketability, utilities, safety, liability, PR, environmental, holding costs, corporate protocols, labor (union) issues, site use history, long-term securityObtain consensus of “stakeholders”Describe / show how site will look at end
Example
4.7M square feet under roof, operated from 1950s to 2007.
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.
Closed Manufacturing Facility, Midwest (US)
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.
Contract documents and technical specifications for work (“performance-based”)
Contractor procurement
Evaluation of contractor bids
Understand governinglaws and ordinances
Develop integrated plan for remedial actions
Step 3 – Project Implementation
Contractor submittal review
Document contractor compliance with specifications andregulations
Liaise with agencies and public on behalf of Owner
Review of waste management records
Administrative assistance anddata management
Inspections: environmentalclearance and general completion
Step 4 – Project Closure
Contractor permit close-outs / regulatory reporting
Document “As-built” surface and subsurface conditions
Archive waste management records
Project closure report – synopsisof major project activities
Facilitates transition intoproperty end use
Decommissioning / demolition cost estimating tool (experience based)
End-use scenario value analysis tool
Asset portfolio prioritization tool
Topics for Further Research