<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<meta http-equiv="content-type" content="text/html; charset=ISO-8859-1">
</head>
<body bgcolor="#ffffff" text="#000000">
<style>@font-face {
font-family: "Arial";
}@font-face {
font-family: "Calibri";
}@font-face {
font-family: "Consolas";
}p.MsoNormal, li.MsoNormal, div.MsoNormal { margin: 0in 0in 10pt; line-height: 115%; font-size: 11pt; font-family: "Times New Roman"; }p.MsoPlainText, li.MsoPlainText, div.MsoPlainText { margin: 0in 0in 0.0001pt; font-size: 10.5pt; font-family: Consolas; }span.PlainTextChar { font-family: Consolas; }div.Section1 { page: Section1; }</style>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">Dear Colleagues:</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">As you know, the federal sequestration has gone
into effect.</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">The Department of Energy has made an analysis of
sequestration
and the impact it will have on DOE operations. In that scenario,
Jefferson Lab
could experience a reduction of as much as $4 million in the
current fiscal
year.</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">In that case, we would expect some significant
impacts:</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText" style="margin-left: 0.5in;"><span
style="font-size: 12pt; font-family: Arial;">- Our initial
response would be
to seek reductions in the purchase of materials and supplies.
This would, of
course, have some adverse impacts. For instance, restoration of
the lab’s
cryogenic supply functionality, which is needed to ensure future
accelerator
operability, would be affected.</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText" style="margin-left: 0.5in;"><span
style="font-size: 12pt; font-family: Arial;">- If necessary, we
could
implement employee furloughs for up to two weeks, which also
would affect those
working on the 12 GeV Upgrade project. </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">There is additional uncertainty because of the
expiration of the Continuing Resolution on March 27. So, we will
need to be
patient as the FY13 budget works its way through the legislative
process.</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">Our primary goal through this process is to
preserve the mission of the lab, and so we will make every
effort to minimize
the impact of sequestration on our staff and on our research. </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">We know we can count on you to stay focused on your
work, and on the safety of you and your co-workers.</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;"> </span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">Hugh Montgomery</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">Director</span></p>
<p class="MsoPlainText"><span style="font-size: 12pt; font-family:
Arial;">Jefferson Lab</span></p>
</body>
</html>