March 3, 2023

Ronald Dailey
President
Nuclear Fuel Services, Inc.
P.O. Box 337
MS 123
Erwin, TN 37650-0337

SUBJECT: NUCLEAR FUEL SERVICES, INC. – LICENSEE PERFORMANCE REVIEW

(NUCLEAR REGULATORY COMMISSION INSPECTION REPORT
07000143/2023005)

Dear Mr. Dailey:

The U.S. Nuclear Regulatory Commission (NRC) staff in our Region II office and the Office of
Nuclear Material Safety and Safeguards (NMSS) completed a periodic performance review of
the Nuclear Fuel Services (NFS) facility with respect to the conduct of NRC-licensed activities.
The performance review covered licensed activities from January 1, 2021, through
December 31, 2022. The performance of NFS was evaluated in the areas of Safety Operations,
Radiological Controls, Facility Support, Safeguards and Other Areas in accordance with
Inspection Manual Chapter (IMC) 2604, “Licensee Performance Review.”

Overall, the NRC staff determined that NFS continued to conduct activities safely and securely
and in a manner that protects public health and the environment. There was a total of three
Severity Level (SL) IV, cited violations identified during the assessment period in the area of
Safety Operations and two SL IV, cited violations in the Safeguards performance area. Based
on our review of licensed activities, no area needing improvement was identified for the
performance areas of Safety Operations, Safeguards, Radiological Controls, Facility Support, or
Other Areas. Therefore, the NRC plans to conduct the core inspection program for a Category I
Fuel Fabrication Facility as described in NRC IMC 2600 Appendix B, “NRC Core Inspection
Requirements Table 1,” for the period of January 1, 2023, through December 31, 2024. Since
there was no area needing improvement identified in Safeguards, a separate licensee
performance review letter will not be issued for this area.

The results of our review are planned to be presented at a public meeting on May 18, 2023.
Although your site had no areas needing improvement for this current review cycle, you will still
be granted the opportunity to discuss your facility’s performance in the same areas as those
evaluated by the NRC, if you so choose.
R. Dailey 2

In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice and Procedure," a copy of
this letter will be made available for public inspection and copying at http://www.nrc.gov/reading-
rm/adams.html and at the NRC Public Document Room in accordance with Title 10 of the Code
of Federal Regulations 2.390, “Public Inspections, Exemptions, Requests for Withholding.”

Please refer questions and comments regarding your Licensee Performance Review to Mr.
Robert E. Williams Jr., Chief, Projects Branch 1, by telephone at 404-997-4664.

Sincerely,
Signed by Masters, Anthony
on 03/03/23

Anthony D. Masters, Director

Division of Fuel Facility Inspection

Docket No. 07000143

License No. SNM-124

cc: w/ encl: Distribution via LISTSERV

R. Dailey 3

SUBJECT: NUCLEAR FUEL SERVICES – LICENSEE PERFORMANCE REVIEW

(NUCLEAR REGULATORY COMMISSION INSPECTION REPORT
07000143/2023005) DATED MARCH 3, 2023

DISTRIBUTION:
A. Masters, RII
R. Williams, RII
J. Worosilo, RII
M. Greenleaf, RII
J. Rivera-Ortiz, RII
L. Harris, RII
L. Cooke, RII
D. Gasperson, RII
J. Pelchat, RII
S. Helton, NMSS
C. Safford, NMSS
J. Rubenstone, NMSS
S. Soto-Lugo, NMSS
A. Rivera-Varona, NMSS
J. Downs, NMSS
M. Kowal, RII
S. Price, RII
N. Doiley, RII
PUBLIC

ADAMS ACCESSION NUMBER: ML23060A102

x Non-Sensitive x Publicly Available
x SUNSI Review
 Sensitive  Non-Publicly Available
OFFICE RII: DFFI RII: PSB NMSS: DFM NMS: DFM RII: DFFI
J. Downs for
NAME R. Williams J. Worosilo A. Rivera-Varona A. Masters
S. Soto-Lugo
DATE 3/1/2023 3/1/2023 3/1/2023 3/1/2023 3/3/2023

OFFICIAL RECORD COPY