ML18087A176

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Letter 18-022 M180065 GEH-GNF-A NRC Decommissioning Surety Bonds 3-27-18
ML18087A176
Person / Time
Site: Vallecitos Nuclear Center, 07000754, 07001113, 07200001, Vallecitos
Issue date: 03/27/2018
From: Murray S
Global Nuclear Fuel
To: Ty Naquin
Fuel Manufacturing Branch
Naquin T
References
Download: ML18087A176 (40)


Text

HITACHI Proprietary Information Notice The Enclosures to this letter contain Global Nuclear Fuel Americas or GE Hitachi Nuclear Energy proprietary information which is to be withheld from public disclosure in accordance with 10 CFR 2.390 and RIS 2005-31. Upon removal of the Enclosures, the balance of this letter may be made public.

Via FedEx M180065 March 27, 2018 Ty Naquin, Fuel Manufacturing Branch Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission 11555 Rockville Pike Rockville, MD 20852 GE Hitachi Nuclear Energy Scott P. Murray Manager, Facility Licensing 3901 Castle Hayne Road P.O. Box 780 Wilmington, NC 28402 USA T (910) 819-5950 scott.murray@ge.com

Subject:

GEH/GNF-A Financial Assurance of Decommissioning Funds - Surety Bonds

References:

1) NRC License SNM-1097, Docket 70-1113
2) NRC License SNM-2500, Docket 72-01
3) NRC License SNM-960, Docket 70-754
4) NRC License TR-1, Docket 50-70
5) NRC License DR-10, Docket 50-183
6) NRC License DPR-1, Docket 50-18
7) NRC License R-33, Docket 50-73
8) GE Company Parent Guarantee of Decommissioning Funds, 5/1/17
9) Letter S. P. Murray to NRC Director, Nuclear Material Safety and Safeguards, "GEH Notice Regarding Decommissioning Financial Assurance Parent Company Guarantee, 3/14/18 1 O) Letter S. P. Murray to NRC Director, Nuclear Material Safety and Safeguards, "GNF-A Notice Regarding Decommissioning Financial Assurance Parent Company Guarantee, 3/14/18

Dear Mr. Naquin:

Per References 9 and 10, GE Hitachi Nuclear Energy Americas, L.L.C (GEH) and Global Nuclear Fuel-Americas (GNF-A) are providing original signed documents that establish surety bonds for decommissioning financial assurance intended to replace the GE Company parent guarantee.

Please note that the surety bonds contain proprietary financial information and are requested to be withheld from public disclosure.

US NRC March 27, 2018 M180065 Page 2 of 2 If you have any questions concerning this information, please call me at (91 0) 819-5950.

SinR?!f ;n Scott P. Murray, Manage~

Facility Licensing Attachments: 1. GNF-A Affidavit

2. GEH Affidavit

Enclosures:

(Contains Company Proprietary Information)

1. NRC License SNM-1097, GNF-A Payment Surety Bonds (2)
2. NRC License SNM-2500, GEH Payment Surety Bond
3. NRC License SNM-960, GEH Payment Surety Bond
4. NRC License TR-1, GEH Payment Surety Bond
5. NRC License DR-10, GEH Payment Surety Bond
6. NRC License DPR-1, GEH Payment Surety Bond
7. NRC License R-33, GEH Payment Surety Bond Cc SPM 18-022

US NRC March 27, 2018 M180065 Page 1 of 2 I, Scott P. Murray, state as follows :

AFFIDAVIT (I)

I am the Manager, Facility Licensing of Global Nuclear Fuel - Americas (GNF-A) and have been delegated the function by GNF-A of reviewing the information described in paragraph (2) which is sought to be withheld, and have been authorized to apply for its withholding.

(2)

The information sought to be withheld is contained in Enclosure I to GEH's letter. M 180065, Scott P. Murray to Ty Naquin, Fuel Manufacturing Branch entitled GEH/GNF-A Financial Assurance of Decommissioning Funds - Surety Bonds. GNF-A proprietary information is contained in Enclosure I and is identified by the statement "GNF-A Proprietary Information.

(3)

In making this application for withholding of proprietary information of which it is the owner or licensee.

GNF-A relics upon the exemption from disclosure set forth in the Freedom of Information Act (FOIA), 5 USC Sec. 552(b)(4), and the Trade Secrets Act, 18 USC Sec. 1905, and NRC regulations 10 CFR 9.l7(a)(4). and 2.390(a)(4) for trade secrets (Exemption 4). The material for which exemption from disclosure is here sought also qualifies under the narrower definition of trade secret, within the meanings assigned to those terms for purposes of FOIA Exemption 4 in, respectively. Critical Mass Encr!!y Project v. Nuclear Rc!!ulatory Commission, 975 F2d 871 (DC Cir. 1992), and Public Citizen Health Research Group v. FDA, 704 F2d 1280

( DC Cir. 1983 ).

(4)

The information sought to be withheld is considered to be proprietary for the reasons set forth in paragraphs (4)a. and (4)b. Some examples of categories of information that fit into the definition of proprietary information arc:

a.

Information that discloses financial, a process. method, or apparatus. including supporting data and analyses. where prevention of its use by GNF-A's competitors without license from GNF-A constitutes a competitive economic advantage over GNF-A and/or other companies.

b.

Information that, if used by a competitor, would reduce their expenditure of resources or improve their competitive position in the design. manufacture. shipment, installation. assurance of quality. or licensing of a similar product.

(5)

To address 10 CFR 2.390(b)(4), the information sought to be withheld is being submitted to the NRC in confidence. The information is of a sort customarily held in confidence by GNF-A. and is in fact so held. The information sought to be withheld has, to the best of my knowledge and belief, consistently been held in confidence by GNF-A, not been disclosed publicly. and not been made available in public sources. All disclosures to third parties. including any required transmittals to the NRC. have been made, or must be made.

pursuant to regulatory provisions or proprietary and/or confidentiality agreements that provide for maintaining the information in confidence. The initial designation of this information as proprietary information. and the subsequent steps taken to prevent its unauthorized disclosure arc as set forth in the following paragraphs (6) and (7).

(6)

Initial approval of proprietary treatment of a document is made by the manager of the originating component.

who is the person most likely to be acquainted with the value and sensitivity of the information in relation to industry knowledge, or who is the person most likely to be subject to the terms under which it was licensed to GEH. Access to such documents within GNF-A is limited to a "'need to know" basis.

(7)

The procedure for approval of external release of such a document typically requires review by the stall manager. project manager, principal scientist. or other equivalent authority for technical content. competitive effect, and determination of the accuracy or the proprietary designation. Disclosures outside GNF-A arc limited to regulatory bodies. customers, and potential customers. and their agents. suppliers. and licensees. and others with a legitimate need for the information, and then only in accordance with appropriate regulatory provisions or proprietary and/or confidentiality agreements.

US NRC March 27, 2018 M180065 Page 2 of 2 (8) The information identified in paragraph (2) ahovc 1s classified as proprietary hecausc it contains details of GNF-A *s processes, design and manufacturing facilities.

(9)

Puhlic disclosure of the information sought to he withheld is likely to cause suhstantial harm to GNr-A's competitive position and foreclose or reduce the availahility of profit-making opportunities. The facility design and licensing methodology is part of GNF-A's comprehensive safety and technology hase. and its commercial value extends hcyond the original development cost. The value of the technology hase goes heyond the extensive physical datahase and analytical methodology and includes development of the expertise to determine and apply the appropriate evaluation process. In addition. the technology hase includes the value derived from providing analyses done with NRC-approved methods.

The research, development, engineering. analytical and NRC review costs comprise a suhstantial investment of time and money hy GNF-A. The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is difficult to 4uantify. hut it clearly is substantial. GNF-A's competitive advantage wi ll he lost if its competitors arc able to use the results of the GNF-A experience to nmmalize or verify their own process or if they arc able to claim an equivalent understanding by demonstrating that they can arrive at the same or similar conclusions.

The value of this information to GNF-A would he lost if the information were disclosed to the public. Making such information available to competitors without their having been required to undertake a similar expenditure of resources would unfairly provide competitors with a windfall. and depri ve GNF-A of the opportunity to exercise its competitive advantage to seek an adequate return on its large investment in developing and obtaining these very valuable analytical tools.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on this 27th day of March 2018.

2Jn;rn1Z Scott P. Murray Global Nuclear Fuel -

mericas STATE OF NORTH CAROLINA COUNTY OF NEW HANOVER Subscribed and sworn to me, a Notary Public, in and for the State of North Carolina, this 27th day of March 2018.

My Commission Expires:

June 23, 2018 Notary Public in and for the State of North Carolina

US NRC March 27, 2018 M180065 Page 1 of 2 I, Scott P. Murray, state as follows :

AFFIDAVIT (I)

I am the Manager, Facility Licensing of GE Hitachi Nuclear Energy Americas. L.L.C. (GEH) and have hccn delegated the function hy GEH of reviewing the information described in paragraph (2) which is sought to he withheld in Attachment 2 to GEH's letter. MI 80065. Scott P. Murray to Ty Naquin entitled GEH/GNF-A Financial Assurance of Decommissioning Funds - Surety Bonds, and have been authorized to apply for its withholding.

(2)

GEH proprietary information is contained in Enclosures 2-7 to this letter and is identified hy the statement "GEH Proprietary Information".

(3)

In making this application for withholding of proprietary information of which it is the owner or licensee.

GEH relics upon the exemption from disclosure set forth in the Freedom of Information Act (FOIA). 5 USC Sec. 552(b)(4 ). and the Trade Secrets Act, I 8 USC Sec. 1905. and NRC regulations IO CFR 9. l 7(a)(4 ). and 2.390(a)(4) for trade secrets (Exemption 4). The material for which exemption from disclosure is here sought also qualifies under the narrower definition of trade secret. within the meanings assigned to those terms for purposes of FOIA Exemption 4 in, respectively, Critical Mass Encn!y Project v. Nuclear Regulatory Commission. 975 F2d 871 (DC Cir. 1992), and Public Citizen Health Research Group v. FDA. 704 F2d 1280 (DC Cir. 1983).

( 4)

The information sought to he withheld is considered to be proprietary for the reasons set forth in paragraphs

( 4 )a. and ( 4 )b. Some examples of categories of information that fit into the definition of proprietary information arc:

a.

Information that discloses financial, a process, method. or apparatus. including supporting data and analyses. where prevention of its use by GEH's competitors without license from GEH constitutes a competitive economic advantage over GEH and/or other companies.

h.

Information that, if used by a competitor. would reduce their expenditure of resources or improve their competitive position in the design. manufacture, shipment, installation. assurance of quality. or licensing of a similar product.

(5)

To address IO CFR 2.390(h)(4), the information sought lo he withheld is being suhmittcd to the NRC in confidence. The information is of a sort customarily held in confidence hy GEH. and is in fact so held. The in formation sought to he withheld has, to the best of my knowledge and hclief. consistently been held in confidence hy GEH, not hcen disclosed puhlicly. and not hccn made availahle in puhlic sources. All disclosures to third parties, including any required transmittals to the NRC. have heen made. or must he made.

pursuant to regulatory provisions or proprietary and/or confidentiality agreements that provide for maintaining the information in confidence. The initial designation of this information as proprietary information. and the suhscquent steps taken to prevent its unauthorized disclosure arc as set forth in the following paragraphs (6) and (7).

(6)

Initial approval of proprietary treatment of a document is made by the manager of the originating component.

who is the person most likely to he acquainted with the value and sensitivity of the information in relation lo industry knowledge. or who is the person most likely to be suhjecl to the terms under which it was licensed to GEH. Access to such documents wi thin GEH is limited to a "need to know" hasis.

(7)

The procedure for approval of external release of such a document typically requires review hy the stall manager. project manager, principal scientist. or other equivalent authority for technical content. competitive effect, and determination of the accuracy of the proprietary designation. Disc losures outside GEH arc limited to regulatory hodics, customers, and potential customers. and the ir agents. suppliers. and licensees. and others with a legitimate need for the information. and then only in accordance with appropriate regulatory provisions or proprietary and/or confidentiality agreements.

US NRC March 27, 2018 M180065 Page 2 of 2 (8)

Tl1c information ickntificd in paragraph (2) ahow 1s dassificd as proprietary hcec1usc it contains ck tails of GEH' s processes. design and manufacturing facilities.

(9)

Puhlic disclosure of the information sought to he withheld is likely to cause suhstantial harm to GEH's competitive position and foreclose or reduce the availahility of profit-making opportunities. The facility design and licensing methodology is part of GEH's comprehensive safety and technology hasc. and its commercial value extends hcyond the original development cost. The value of the technology hasc goes hcyond the extensive physical datahasc and analytical methodology and includes development of the expertise to determine and apply the appropriate evaluation process. In addition. the technology hasc includes the value derived from providing analyses done with NRC-approved methods.

The research. development, engineering, analytical and NRC review costs comprise a suhstantial investment of time and money hy GEH. The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is difficult to quantify. hut it clearly is suhstantial. GEH's competitive advantage will he lost if its competitors arc ahlc to use the results of the GEH experience to normalize or verify their own process or if they arc ahle to claim an equivalent understanding hy demonstrating that they can arrive at the same or similar conclusions.

The value of this information to GEH would he lost if the information were disclosed to the puhlic. Making such information availahlc to competitors without there having hecn required to undertake a similar expenditure of resources would unfairly provide competitors with a windfall. and deprive GEH of the opportunity to exercise its competitive advantage to seek an adequate return on its large investment in developing and ohtaining these very valuahle analytical tools.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on this 27th day of March 2018.

STATE OF NORTH CAROLINA COUNTY OF NEW HANOVER Suhscrihcd and sworn to me. a Notary Puhlic, in and for the State of North Carolina. this 27th day of March 2018.

My Commission Expires:

June 23, 2018

~ pj~_,,, -

Notary Public in and for the State of North Carolina