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<title>February 15, 2007, Board letter forwarding the First Quarterly Report to Congress on the Status of Significant Unresolved Issues with the Department of Energy Design and Construction Projects</title>
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<body lang=3DEN-US link=3Dblue vlink=3Dpurple style=3D'tab-interval:.5in'>

<div class=3DSection1>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><b
style=3D'mso-bidi-font-weight:normal'>[DNFSB LETTERHEAD]<o:p></o:p></b></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>February
15, 2007</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>Mr.
Mark B. Whitaker, Jr.</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>Departmental
Representative to the DNFSB</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>U. <span
style=3D'mso-bidi-font-weight:bold;mso-bidi-font-style:italic'>S. </span>De=
partment
of Energy</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>1000
Independence Avenue, SW</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>Forrestal<span
style=3D'mso-bidi-font-size:11.0pt;mso-bidi-font-family:Arial'> </span><span
style=3D'mso-bidi-font-weight:bold'>Building, Room </span><span style=3D'ms=
o-bidi-font-size:
11.5pt'>6</span><span style=3D'mso-bidi-font-weight:bold'>H</span>-025</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>Washington,
<span style=3D'mso-bidi-font-size:11.5pt;mso-bidi-font-weight:bold'>DC </sp=
an>20585-1<span
style=3D'mso-bidi-font-size:11.5pt'>000<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><span
style=3D'mso-bidi-font-size:11.5pt'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>Dear
Mr. Whitaker:</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>The Defense
Nuclear Facilities Safety Board <span style=3D'mso-bidi-font-size:7.5pt;
mso-bidi-font-family:Arial'>(</span>Board) is pleased to enclose <span
style=3D'mso-bidi-font-size:11.5pt'>a </span>copy of our First Quarterly Re=
port <span
style=3D'mso-bidi-font-size:11.5pt'>to </span>Congress on the Status of
Significant Unresolved Issues with the Department <span style=3D'mso-bidi-f=
ont-size:
11.0pt'>of </span>Energy&#8217;s Design <span style=3D'mso-bidi-font-size:1=
1.5pt'>and
</span>Construction Projects. <span
style=3D'mso-spacerun:yes'>&nbsp;</span>Congress mandated the Board <span
style=3D'mso-bidi-font-size:11.5pt'>to </span>write this report <span
style=3D'mso-bidi-font-size:11.5pt;mso-bidi-font-weight:bold'>in </span>the=
 House
Conference <span style=3D'mso-bidi-font-size:11.0pt;mso-bidi-font-family:Ar=
ial'>Report
</span>109-702 (Section 3201<span style=3D'mso-bidi-font-size:9.5pt;mso-bid=
i-font-family:
Arial'>), </span>on the National Authorization Act for Fiscal Year 2007 <sp=
an
style=3D'mso-bidi-font-size:12.5pt;mso-bidi-font-weight:bold'>(H.R. </span>=
<span
style=3D'mso-bidi-font-style:italic'>5</span>122).</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>The
conferees directed the Board <span style=3D'mso-bidi-font-size:11.5pt'>and =
the D</span>epartment
of Energy <span style=3D'mso-bidi-font-size:11.5pt'>to </span>prepare joint=
ly a
report on efforts toward more timely resolution of<span style=3D'mso-bidi-f=
ont-size:
11.0pt;mso-bidi-font-family:Arial;mso-bidi-font-weight:bold'> </span>techni=
cal
issues raised by the Board. <span style=3D'mso-spacerun:yes'>&nbsp;</span><=
span
style=3D'mso-bidi-font-size:11.5pt'>Until </span>such time <span
style=3D'mso-bidi-font-size:11.5pt'>as </span>the jointly prepared report is
submitted, the conferees have directed the Board <span style=3D'mso-bidi-fo=
nt-size:
11.5pt'>to </span>provide quarterly reports <span style=3D'mso-bidi-font-si=
ze:
11.5pt'>on the </span>status of significant unresolved technical difference=
s between
the Board and the Department of Energy concerning design and construction.<=
/p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'>Sincerely,</p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><b><i><span
style=3D'mso-bidi-font-size:7.5pt;mso-bidi-font-family:Arial'>A</span></i><=
/b><b
style=3D'mso-bidi-font-weight:normal'><i style=3D'mso-bidi-font-style:norma=
l'><span
style=3D'mso-bidi-font-size:10.5pt;mso-bidi-font-family:Arial'>. </span>J</=
i></b><b
style=3D'mso-bidi-font-weight:normal'><i style=3D'mso-bidi-font-style:norma=
l'><span
style=3D'mso-bidi-font-family:Arial'>. </span>Eggenberger<o:p></o:p></i></b=
></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><b
style=3D'mso-bidi-font-weight:normal'><i style=3D'mso-bidi-font-style:norma=
l'><span
style=3D'mso-bidi-font-size:8.5pt;mso-bidi-font-family:Arial'>Chairman<o:p>=
</o:p></span></i></b></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal style=3D'mso-layout-grid-align:none;text-autospace:non=
e'><span
style=3D'mso-bidi-font-size:11.5pt'><a
href=3D"http://www.hss.doe.gov/deprep/2007/fb07f15a.pdf">Enclosure=
</a>:
as stated</span><span style=3D'mso-bidi-font-size:10.0pt'><o:p></o:p></span=
></p>

<p class=3DMsoNormal><o:p>&nbsp;</o:p></p>

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