ML19080A060

Transmittal 19-008 M190061 GEH-GNF-A NRC Financial Assurance Update - 03192019

ML19080A060
Person / Time
Site:	Vallecitos Nuclear Center, 07000754, 07001113, 07200001, Vallecitos
Issue date:	03/19/2019
From:	Murray S Global Nuclear Fuel
To:	Ty Naquin NRC/NMSS/DFCSE/FLB
Naquin T
References
M190061
Download: ML19080A060 (32)

Text

{{#Wiki_filter:* 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 M190061 March 19, 2019 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. Box780 Wilmington, NC 28402 USA T (910) 819-5950 scott.murray@ge.com

Subject:

GEH/GNF-A Financial Assurance of Decommissioning Funds - Surety Bond Riders

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) N RC License R-33, Docket 50-73

8) Letter S. P. Murray to T. Naquin (NRC), "GEH/GNF-A Financial Assurance of Decommissioning Funds - Surety Bonds, 3/27/18

Dear Mr. Naquin:

On March 27, 2018 (Reference 8), GE Hitachi Nuclear Energy Americas, L.L.C (GEH) and Global Nuclear Fuel-Americas (GNF-A) provided surety bonds for decommissioning financial assurance for the referenced NRC licenses. The enclosures to this letter provide supplemental riders to increase the bond amounts. All other terms and conditions of the bonds remain unchanged. Please note that the surety bond riders contain proprietary financial information and are requested to be withheld from public disclosure. If you have any questions concerning this information, please call me at (910) 819-5950. Since ly, v,/) ~ P.,,,~ cott P. Murray, Manag Facility Licensing

USNRC March 19, 2019 M190061 Page2of2 Attachments: 1. GNF-A Affidavit

2. GEH Affidavit

Enclosures:

(Contains Company Proprietary Information)

1. NRG License SNM-1097, Rider for GNF-A Payment Surety Bond No.

9277999

2. NRG License SNM-1097, Rider for GNF-A Payment Surety Bond No.

106857483

3. NRG License SNM-2500, Rider tor GEH Payment Surety Bond No.

82454298

4. NRG License SNM-960, Rider for GEH Payment Surety Bond No. 2253266

5. NRG License TR-1, Rider for GEH Payment Surety Bond No. 2253262

6. NRG License DR-10, Aider for GEH Payment Surety Bond No. 2253260

7. NRG License DPR-1, Rider for GEH Payment Surety Bond No. 2253268

8. NRG License R-33, Rider for GEH Payment Surety Bond No. 2253264 Cc SPM 19-008

USNRC March 19, 2019 M190061 Page 1 of 2 I, Scott P. Murray, slate as follows: AFFIDAVIT (I) I am the Manager, Facility Licensing of Global Nuclear Fuel - Americas (GNF-A) and have been dclcgaled 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 Enclosures I and 2 to GEH's letter, M 190061, Scott P. Murray to Ty Naquin, Fuel Manufacturing Branch entitled GEH/GNF-A Financial Assurance of Decommissioning Funds - Surety Bond Riders. GNF-A proprietary information is contained in Enclosures I and 2 and is identified by 1hc 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 9.17(a)(4), and 2.390(a)(4) for trade secrets (Exemption 4 ). The material for which exemption from disclosure is here sough! also qualifies under the narrower definition of trade secret, within the meanings assigned 10 1hose lcrms for purposes of FOIA Excmplion 4 in, respectively, Crilical Mass Energy Project v. Nuclear Regulatory Commission, 975 F2d 871 (DC Cir. I 992), and Public Citizen Health Research Group v. FDA, 704 F2d 1280 (DC Cir. 1983). (4) The information sought to he wi1hheld is considered to be proprietary for the reasons set forth in paragraphs (4)a. and (4)b. Some examples of categories of informalion that lit inlo lhc definition of proprietary informalion arc:

a.

Informalion 1ha1 discloses financial, a process, method, or apparalus, including supporting dala and analyses, where prevention of its use by GNF-A's compclitors without license from GNF-A constitutes a competitive economic advantage over GNF-A and/or 01her 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 IO CFR 2.390(b}(4}, the information sought to be withheld is being submitted to lhe NRC in confidence. The information is of a sort customarily held in confidence by GNF-A and is in fact so held. The information sough! to be withheld has, to the best of my knowledge and belief, consis1cn1ly been held in confidence by GNF-A, no1 been disclosed publicly, and not been made available in public sources. All disclosures lo lhird 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 lhc information in confidence. The initial designation of this information as proprielary information, and lhc subsequent steps taken to prevent its unauthorized disclosure arc as set forth in the following paragraphs (6) and (7). (6) Initial approval of proprietary lreatmcnt 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 10 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 staff manager, project manager, principal scientist, or other equivalent authority for technical content, competitive effect, and determination of the accuracy of the proprietary designation. Disclosures outside GNF-A arc limi1cd to rcgulalory bodies, customers, and potential customers, and their agents, suppliers, and licensees, and olhcrs wilh a legitimale need for the information, and then only in accordance with appropriate regulatory provisions or proprielary and/or confidentiality agreements.

USNRC March 19, 2019 M190061 Page 2 of 2 (BJ The information identified in paragraph (2) above is classilicd as proprietary because it contains details of GNF-A' s processes, design and manufacturing facilities. (9) Public disclosure of the information sought to be withheld is likely to cause substantial harm to GNF-A's competitive position and foreclose or reduce the availability of profit-making opportunities. The facility design and licensing methodology is part of GNF-A's comprehensive safety and technology base, and its commercial value extends beyond the original development cost. The value of the technology base goes beyond the extensive physical database and analytical methodology and includes development of the expertise to determine and apply the appropriate evaluation process. In addition, the technology base includes the value derived from providing analyses done with NRC-approved methods. The research, development, engineering, analytical and NRC review costs comprise a substantial investment of time and money by GNF-A. The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is diflicult to quantify, but it clearly is substantial. GNF-A's competitive advantage will be lost if its competitors arc able to use the results of the GNF-A experience to normalize 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 be 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 deprive GNF-A of the opportunity lo 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 19th day of March 2019. X.,;Ji;rP 1127 Scott P. Murray Global Nuclear Fuel - Americ STATE OF NORTH CAROLINA ) ) COUNTY OF NEW HANOVER ) Subscribed and swo~_otary Public, in and for the State of North Carolina, this 19th day of March 2019. /4~~~~~~~~~ ~ .... OiAR,... ***,.. lf0 'bf~ ,~ ~ l~I Ju ~ /)d ) i u1 \\ 11 ~, tf tLill..) U,4. (l47J _/ ~\\. 01,.__ ~ 7 t ry Public in ~r the ~'1,,~~0~ State of North Carolina ltA,v ~ v My Commission Expires. 1/ - Jo 3

USNRC March 19, 2019 M190061 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 been delegated the function by GEH of reviewing the information described in paragraph (2) which is sought to be withheld in Enclosures 3 thru 8 to GEH's lcller, M190061, Scott P. Murray 10 Ty Naquin entitled GEH/GNF-A Financial Assurance of Decommissioning Funds - Surety Bond Riders, and have been authorized to apply for its withholding. (2) GEH proprietary information is contained in Enclosures 3-8 to this letter and is identified by 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, 18 USC Sec. 1905, and NRC regulations 10 CFR 9.17(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 Energy 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 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 lit into the definition of proprietary information arc:

a.

Information that discloses linancia\\, 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.

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(h)(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 GEH and is in fact so held. The information sought to be withheld has, to the best of my knowledge and belier, consistently been held in confidence by GEH, 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 he made, pursuant 10 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 GEH is limited 10 a "need to know" basis. (7) The procedure for approval of external release of such a document typically requires review by the Slaff manager, project manager, principal scientist, or other equivalent authority for technical content, competitive effect, and determination of the accuracy of the proprietary designation. Disclosures outside GEH arc limited to regulatory bodies, customers, and potential customers, and their agents, suppliers, and licensees, and others wilh a legitimale need for the information, and then only in accordance with appropriate regulatory provisions or proprietary and/or confidentiality agreements.

US NRC March 19, 2019 M190061 Page 2 of 2 (8) The information identified in paragraph (2) above is classified as proprietary because it contains details ofGEH's processes, design and manufacturing facilities. (9) Public disclosure of the information sought to be withheld is likely to cause substantial harm to GEH's competitive position and foreclose or reduce the availability of profit-making opportunities. The facility design and licensing methodology is part of GEH's comprehensive safety and technology base, and its commercial value extends beyond the original development cost. The value of the technology base goes beyond the extensive physical database and analytical methodology and includes development of the expertise Lo determine and apply the appropriate evaluation process. In addition, the technology base includes the value derived from providing analyses done with NRC-approvcd methods. The research, development, engineering, analytical and NRC review costs comprise a substantial investment of time and money by GEH. The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is difficult to quantify, but it clearly is substantial. GEH's competitive advantage will be lost if its competitors arc able to use the results of the GEH experience to normalize 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 lhis information to GEH would be lost if the information were disclosed to the public. Making such information available to competitors without there having been 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 obtaining these very valuable analytical tools. I declare under penalty or perjury that the foregoing is true and correct. Executed on this 19th day of March 2019. STATE OF NORTH CAROLINA COUNTY OF NEW HANOVER ) ~--"~ Subscrib~~

• a Notary Public, in and for the State of North Carolina, this 19th day of March 2019.

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