ML22123A108

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American Centrifuge Plant - Supplemental Information Related to Foreign Ownership, Control, or Influence Information
ML22123A108
Person / Time
Site: 07007004
Issue date: 04/27/2022
From: Karen Fitch
American Centrifuge Operating
To: Samson Lee
Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Security and Incident Response
References
ACO 22-0030
Download: ML22123A108 (9)


Text

CUI// PROPIN Proprietary Information

( t8ntrus * * *
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  • Fueling the Future
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  • of Nuclear Power April 27, 2022 ACO 22-0030

ATTN: Document Control Desk Samuel Lee, Director Division of Security Operations Office of Nuclear Security and Incident Response U.S. Nuclear Regulatory Commission Washington, DC 20555-0001

American Centrifuge Plant, Docket No. 70-7004; License No. SNM-2011

Supplemental Information Related to Foreign Ownership, Control, or Influence Information

INFORMATION TRANSMITTED HEREWITH IS PROTECTED FROM PUBLIC DISCLOSURE AS CONFIDENTIAL COMMERCIAL OR FINANCIAL INFORMATION AND/OR TRADE SECRETS PURSUANT TO 10 CFR 2.390 AND 9.17(a)(4)

Dear Samuel Lee:

In accordance with a commitment made within Reference 1, the purpose of this letter is to submit American Centrifuge Operating, LLC ' s (ACO) unaudited financial information for calendar year 2021 for U.S. Nuclear Regulatory Commission review (Enclosure 1).

contains Proprietary Information and ACO requests that this enclosure be withheld from public disclosure pursuant to 10 Code of Federal Regulations (CFR) 2.390(a)(4). An affidavit required by 10 CFR 2.390(b)(l)(ii) is provided within Enclosure 2.

If any further information is needed to complete the review of this supplemental information, please contact me at (740) 897-3859. /vi t) b (

Sincerely, ;)5/(bt

~/j,'fJ ;J/0SSb l

Kelly L. Fitch ('}SJ l!

Regulatory Manager Document/matter transmitted contains CUI// PROPIN,JJ-1 :S-5

Proprietary Information When separated from Enclosure 1, this cover letter and Enclosure 2 are uncontrolled.

American Centrifuge Operating, LLC 3930 U.S. Route 23 South - P.O. Box 628 Piketon, OH 45661 CUI// PROPIN Proprietary Information

Samuel Lee April 27, 2022 ACO 22-0030, Page 2

Enclosures:

As stated

Reference:

1. Letter ACO 20-0005 from L.B. Cutlip to M. Bailey (NRC) regarding Supplemental Information Related to Foreign Ownership, Control, or Influence Information, dated January 29,2020.

cc (without enclosures unless otherwise noted):

S. Bazian, NRC HQ K. Everly, NRC HQ (Enclosures)

Y. Paraz, NRC HQ (Enclosures)

S. Harlow, DOE NE J. Hutson, DOE NE Contractor (Enclosures)

L. Pitts, NRC Region II (Enclosures)

J. Tobin, NRC HQ (Enclosures)

T. Vukovinsky, NRC Region II

\\

Document/matter transmitted contains CUI// PROPIN Proprietary Information When separated-from Enclosure 1, this cover letter and Enclosure 2 are uncontrolled.

Enclosure 2 of ACO 22-0030

Affidavit

Information Contained Within Does Not Contain Export Controlled Information Reviewing Official: #1038, ACO

Date: 04/25/2022 AFFIDAVIT OF LARRY B. CUTLIP SUPPORTING APPLICATION TO WITHHOLD FROM PUBLIC DISCLOSURE CERTAIN INFORMATION PROVIDED TO NRC IN LETTER ACO 22-0030

I, Larry B. Cutlip, of American Centrifuge Operating, LLC (ACO), having been duly

sworn, do herby affirm and state:

1. I have been authorized by ACO to (a) review the information owned by ACO which is

referenced herein relating to a supplement to the Foreign Ownership, Control or Influence

(FOCI) information specific to ACO described in letter ACO 22-0030, which ACO seeks to

have withheld from public disclosure pursuant to section 14 7 of the Atomic Energy Act

(AEA), as amended, 42 U.S.C. § 2167, and 10 CFR 2.390(a)(4), and 9.17(a)(4), and (b)

apply for the withholding of such information from public disclosure by the U.S. Nuclear

Regulatory Commission (NRC) on behalf of ACO.

2. Consistent with the provisions of 10 CFR 2.390(b)(4) of the Commission's regulations, the

following is furnished for consideration by the Commission in determining whether the

information sought to be withheld from public disclosure should be withheld.

1. The information sought to be withheld from public disclosure is owned and has been held

in confidence by ACO.

11. The information is of a type customarily held in confidence by ACO and not customarily

disclosed to the public. ACO has a rational basis for determining the types of

information customarily held in confidence by it and, in that connection, utilizes a system

to determine when and whether to hold certain types of information in confidence. The

application of that system and the substance of that system constitute ACO policy and

provide the rational basis required. Under that system, information is held in confidence

if it falls in one or more of several types, the release of which might result in the loss of

an existing or potential competitive advantage, as follows:

a) The information reveals the distinguishing aspects of a process (or component,

structure, tool, method, etc.) where presentation of its use by any of Centrus'/ACO's

competitors without license from ACO constitutes a competitive economic advantage

over other companies.

b) It consists of supporting data, including test data, relative to a process ( or component,

structure, tool, method, etc.), the application of which data secures a competitive

economic advantage (e.g., by optimization or improved marketability).

c) Its use 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 a similar product.

d) It reveals cost or price information, production capacities, budget levels, or

commercial strategies of ACO, its customers or suppliers.

,e) It reveals aspects of past, present, or future ACO or customer funded development

plans and programs of potential commercial value to ACO.

f) It reveals information concerning the terms and conditions, work performed,

administration, performance under or extension of contracts with its customers or

suppliers.

iii. There are sound policy reasons behind the ACO system which include the following:

a) The use of such information by ACO gives ACO a competitive advantage over its

competitors. It is, therefore, withheld from disclosure to protect the ACO competitive

position.

b) It is information, which is marketable in many ways. The extent to which such

information is available to competitors diminishes ACO's ability to sell products and

services involving the use of the information.

c) Use by our competitors would put ACO at a competitive disadvantage by reducing their expenditure of resources at ACO expense.

d) Each component of proprietary information pertinent to a particular competitive

advantage is potentially as valuable as the total competitive advantage. If competitors

acquire components or proprietary information, any one component may be the key to

the entire puzzle, thereby depriving ACO of a competitive advantage.

e) Unrestricted disclosure would jeopardize the position of prominence of ACO in the

world market, and thereby give a market advantage to the competition of those

countries.

f) The ACO capacity to invest corporate assets in research and development depends

upon the success in obtaining and maintaining a competitive advantage.

iv. The information is being transmitted to the Commission in confidence and, under the

provisions of 10 CFR Section 2.390, it is to be received in confidence by the

Commission.

v. The information sought to be protected is not available in public sources or available

information has not been previously employed in the same original manner or method to

the best of our knowledge and belief.

3. The proprietary information sought to be withheld is contained in.Enclosure 1 of ACO

22-0030. This letter provides NRC with subsidiary company financial information. This

information is part of that which will enable ACO to ensure adequate funding is available

to continue the deployment of ACO's high assay low enriched uranium (HALEU)

Demonstration Program.

Further the deponent sayeth not.

Larry B. Cutlip, having been duly sworn, hereby confirms that I am the Senior Vice

President, Field Operations of ACO, that I am authorized on behalf of ACO to review the

information attached hereto and to sign and file with the NRC this affidavit and the attachments

hereto, and that the statements made and matters set forth herein are true and correct to the best

of my knowledge, information, and belief.

Larry B. Cutlip

On this 27 th day of April 2022, Larry B. Cutlip personally appeared before me, is known

by me to be the person whose name is subscribed to within the instrument and acknowledged

that he executed the same for the purposes therein contained.

In witness hereof I hereunto set my hand and official seal.

Kathy Richer State of Tennessee Notary Public Anderson County My commission expires October 26, 2024 AC-005 (01/23/2020)

D. P d ACD2 RG 003 river roce ure - - p aqe 1 f 0 1

REGULATORY CORRESPONDENCE REVIEW AND CONCURRENCE

Subject:

Letter/Report No.

Supplemental Information Related to Foreign Ownership, Control, or ACO 22-0030 Influence Information

Preparer: Fitch Due Date: 04/30/2022 I [8;] Notary Public D Fee Required

Organization Review Concurrence Signature / Date Area of Comments Review* Yes No D List Applicable Line Management/

Subject Matter Expert(s)

i..

Approval for Public Release.- Cover Via email 04/25/2022 Letter and Enclosure 2 PI/PII Review - Enclosure 1 John Lockwood ECI Review-No OUO Review-No DC#4734 I ECI #1038 UCNI Review - No Public Release of Cover Letter and SRSI Review - No Enclosure 2 Only, while Enclosure 1 PROPIN SGI Review - No withheld as CUI//

D Derivative Classifier Review -

Unclassified

[8J Centrus Legal Shahram Ghasemian - comment 0 X incorporated 04/25/2022

[8J Centrus HO Accounting Kevin Harrill - via email 04/26/2022 Cl X

[8J Centrus HQ FSO Mike Whitehurst-via email 04/25/2022 0 X

[8J Regulatory Manager See Signed Letter 0

[8J Enrichment Operations Plant Manager Matt Snider - 0

Director, Engineering, Procurement, & Construction

[8J Senior Vice President, Field Operations Cutlip - signed affidavit 0

  • AREA OF REVIEW:

~ Organization supplied input - verify and concur that the information contained in the document is complete your knowledge.

0 and accurate in all material respects to the best of Organization concurrence with information is required.

DISTRIBUTION:

Final sent to the Regulator (Date/initials): Original:

Internal Distribution Completed (Date/initials): EDMS:

Further the deponent sayeth not.

Larry 8. Cutlip, having been duly sworn, hereby confinns that l am the Senior Vice

President, Field Operations of ACO, that I am authorized on behalf of ACO to review the

information attached hereto and to sign and file with the NRC this affidavit and the attachments

hereto, and that the statements made and matters set forth hei:ein are true and correct to the best

of my knowledge, information, and belief.

(

On this 27 th day of April 2022, Larry B. Cutlip personally appeared before me, is known

by me to be the person whose name is subscribed to within the instrument and acknowledged

that he executed the same for the purposes therein contained.

In witness hereof l hereunto set my hand and official seal.

Kat~her State of Tennessee Notary Public Anderson County My commission expires October 26, 2024