RA-20-0080, Response to Requests for Additional Information for Exemption Request to the Requirements of Certificate of Compliance No. 1031 for the NAC Magnastor Storage System

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Response to Requests for Additional Information for Exemption Request to the Requirements of Certificate of Compliance No. 1031 for the NAC Magnastor Storage System
ML20072M224
Person / Time
Site: Mcguire, Catawba, McGuire, 07201031  Duke Energy icon.png
Issue date: 03/12/2020
From: Snider S
Duke Energy Carolinas
To:
Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
Shared Package
ML20072M222 List:
References
RA-20-0080
Download: ML20072M224 (6)


Text

Steve Snider

( ~ DUKE Vice President ENERGY. Nuclear Engineering 526 South Church Street, EC-07H Charloote, NC 28202 980-373-6195 Steve.Snider@duke-energy.com Enclosures 1 through 4 Contain Proprietary Information Withhold in Accordance with 10 CFR 2.390 Serial: RA-20-0080 10 CFR 72.7 March 12, 2020 10 CFR 72.212 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001 McGuire Nuclear Station, Unit Nos. 1 and 2 Docket Nos. 50-369, 50-370 Renewed Facility Operating License Nos. NPF-9, NPF-17 Independent Spent Fuel Storage Installation Docket No. 72-38 Catawba Nuclear Station, Units Nos. 1 and 2 Docket Nos. 50-413, 50-414 Renewed Facility Operating License Nos. NPF-35, NPF-52 Independent Spent Fuel Storage Installation Docket No. 72-45

Subject:

Response to Requests for Additional Information for Exemption Request to the Requirements of Certificate of Compliance No. 1031 for the NAC MAGNASTOR Storage System

References:

1. Duke Energy Letter RA-19-0471, Request for an Exemption to the Requirements of Certificate of Compliance No. 1031 for the NAC MAGNASTOR Storage System (ML20009E527), January 9, 2020.
2. NRC Letter to S. Snider, Application for Exemptions for Catawba and McGuire Independent Spent Fuel Storage Installations - Request for Additional Information (ML20050D338), February 21, 2020.

Ladies and Gentlemen:

By letter dated January 9, 2020 (Reference 1), Duke Energy Carolinas, LLC (Duke Energy) requested exemptions pursuant to 10 CFR 72.7, Specific Exemptions for the McGuire Nuclear Station (MNS) and Catawba Nuclear Station (CNS) Independent Spent Fuel Storage Installation (ISFSIs). Specifically, exemption was requested from the ASME Code Section III, Division 1, Subsection NG-2300, Charpy testing direction requirement for carbon steel plate material greater than 0.625 inches thick, as well as the post-heat treatment UT requirements for ASME Section III, Division 1, Subsection NG-2500, for rolled carbon steel plate material greater than 0.75 inches.

RA-20-0080 Page 2 By letter dated February 21, 2020 (Reference 2), the Nuclear Regulatory Commission (NRC) requested additional information required to complete its review. Enclosure 1 to this letter provides the responses to the Requests for Additional Information. Enclosure 2 contains revision 3 to White Paper 71160-WP-20. Enclosure 3 contains Kobe Steel report PGA19-0903, dated September 11, 2019. Enclosure 4 contains the Hitachi-Zosen records of ultrasonic examination of the leftover material. Enclosures 1 through 4 contain proprietary information. An affidavit pursuant to 10 CFR 2.390 is provided in Enclosure 5.

No regulatory commitments are contained in this letter. Please refer any questions regarding this submittal to Mr. Art Zaremba, Director- Nuclear Fleet Licensing, at (980) 373-2062.

Sincerely, Steve Snider Vice President Nuclear Engineering

Enclosures:

1.
2. 71160-WP-020, NAC International Assessment of Longitudinal Versus Transverse Charpy Impact Testing for A537 and A516 Materials, Revision 3
3. Kobe Steel Ltd. Report, PGA19-0903, Influence of Sampling Orientation on Lateral Expansion of Charpy Impact Test Specimen
4. Hitachi-Zosen Record of Ultrasonic Examination of Leftover Material
5. Affidavit Pursuant to 10 CFR 2.390 CC (w/Enclosures):

Laura Dudes, U.S. NRC, Regional Administrator Joe Austin, U.S., NRC, Sr. Resident Inspector- Catawba Andy Hutto, U.S. NRC, Sr. Resident Inspector- McGuire Michael Mahoney, U.S. NRC, Project Manager- Catawba and McGuire Bernie White, U.S. NRC, Sr. Project Manager, Division of Spent Fuel Management

Enclosure 5 Affidavit Pursuant to 10 CFR 2.390

I INTERNATIONAL NAC NAC INTERNATIONAL AFFIDAVIT PURSUANT TO 10 CFR 2.390 Doug Jacobs (Affiant), Vice President, Storage and Transportation Projects, hereinafter referred to as NAC, at 3930 East Jones Bridge Road, Peachtree Corners, Georgia 30092, being duly sworn, deposes and says that:

1. Affiant has reviewed the information described in Item 2 and is personally familiar with the trade secrets and privileged information contained therein, and is authorized to request its withholding.
2. The information to be withheld includes the following NAC Proprietary Information that is being provided in support of the NRC review of Duke Energy, Application for Exemption for Catawba and McGuire Independent Spent Fuel Storage Installation - Request for Additional Information (ML20050D338). Docket No. 72-38 and 72.45 and Enterprise Project Identifier No. L-2020-LLE-0003 and L-2020-LLE-0004 for Exemption request dated January 9, 2020 (ML20009E527) submittal

- RA-19-0471.

  • Enclosure 2, 71160-WP-020 Rev 03, NAC International Assessment of Longitudinal Versus Transverse Charpy Impact Testing for A537 and A516 Materials, Rev. 3
  • Enclosure 3, Kobe Steel Ltd. Report, PGA 19-0903, September 11, 2019
  • Enclosure 4, Hitachi Zosen, Record of UT Exam, October 17, 2019 NAC is the owner of this information that is considered to be NAC Proprietary Information.
3. NAC makes this application for withholding of proprietary information based 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 NRCRegulations 10 CFR Part 9.17(a)(4), 2.390(a)(4), and 2.390(b)(l) for "trade secrets and commercial financial information obtained from a person, and privileged or confidential" (Exemption 4 ). The information for which exemption from disclosure is herein sought is all "confidential commercial information," and some portions may also qualify under the narrower definition of "trade secret," within the meanings assigned to those terms for purposes of FOIA Exemption 4.
4. Examples of categories of information that fit into the definition of proprietary information are:
a. Information that discloses a process, method, or apparatus, including supporting data and analyses, where prevention of its use by competitors of NAC, without license from NAC, constitutes a competitive economic advantage over 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.
c. Information that reveals cost or price information, production capacities, budget levels or commercial strategies of NAC, its customers, or its suppliers.
d. Information that reveals aspects of past, present or future NAC customer-funded development plans and programs of potential commercial value to NAC.
e. Information that discloses patentable subject matter for which it may be desirable to obtain patent protection.

Duke Energy RA-20-0080 Page 1 of3

I INTERNATION NAC AL NAC INTERNATIONAL AFFIDAVIT PURSUANT TO 10 CFR 2.390 (continued)

The information that is sought to be withheld is considered to be proprietary for the reasons set forth in Items 4.a, 4.b, and 4.d.

5. The information to be withheld is being transmitted to the NRC in confidence.
6. The information sought to be withheld, including that compiled from many sources, is of a sort customarily held in confidence by NAC, and is, in fact, so held. This information has, to the best of my knowledge and belief, consistently been held in confidence by NAC. No public disclosure has been made, and it is not 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 agreements, which provide for maintenance of the information in confidence. Its initial designation as proprietary information and the subsequent steps taken to prevent its unauthorized disclosure are as set forth in Items 7 and 8 following.
7. Initial approval of proprietary treatment of a document/information is made by the Vice President, Engineering, the Project Manager, the Licensing Specialist, or the Director, Licensing - the persons most likely to know the value and sensitivity of the information in relation to industry knowledge.

Access to proprietary documents within NAC is limited via "controlled distribution" to individuals on a "need to know" basis. The procedure for external release ofNAC proprietary documents typically requires the approval of the Project Manager based on a review of the documents for technical content, competitive effect and accuracy of the proprietary designation. Disclosures of proprietary documents outside ofNAC are limited to regulatory agencies, customers and potential customers and their agents, suppliers, licensees and contractors with a legitimate need for the information, and then only in accordance with appropriate regulatory provisions or proprietary agreements.

8. NAC has invested a significant amount of time and money in the research, development, engineering and analytical costs to develop the information that is sought to be withheld as proprietary. This information is considered to be proprietary because it contains detailed descriptions of analytical approaches, methodologies, technical data and/or evaluation results not available elsewhere. The precise value of the expertise required to develop the proprietary information is difficult to quantify, but it is clearly substantial.

Public disclosure of the information to be withheld is likely to cause substantial harm to the competitive position ofNAC, as the owner of the information, and reduce or eliminate the availability of profit-making opportunities. The proprietary information is part of NAC's comprehensive spent fuel storage and transport technology base, and its commercial value extends beyond the original development cost to include the development of the expertise to determine and apply the appropriate evaluation process. The value of this proprietary information and the competitive advantage that it provides to NAC would be lost if the information were disclosed to the public. Making such information available to other parties, including competitors, without their having to make similar investments of time, labor and money would provide competitors with an unfair advantage and deprive NAC of the opportunity to seek an adequate return on its large investment.

Duke Energy RA-20-0080 Page 2 of3

RINTERNATIONAL NAC NACINTERNATIONAL AFFIDAVIT PURSUANT TO 10 CFR 2.390 (continued)

STATE OF GEORGIA, COUNTY OF GWINNETT Mr. Doug Jacobs, being duly sworn, deposes and says:

That he has read the foregoing affidavit and the matters stated herein are true and correct to the best of his knowledge, information and belief.

Executed at Peachtree Comers, Georgia, this j +.!;;- day of -y{/_{a/LJA...-- ,2020.

Vice President, Storage and Transportation Projects, NAC International Subscribed and sworn before me this 9 ~ day of vv({ vc.L, , 2020.

Duke Energy RA-20-0080 Page 3 of 3