ML23117A331
| ML23117A331 | |
| Person / Time | |
|---|---|
| Site: | Vallecitos Nuclear Center |
| Issue date: | 04/27/2023 |
| From: | Murray S GE-Hitachi Nuclear Energy Americas |
| To: | Duane Hardesty Office of Nuclear Reactor Regulation, Document Control Desk |
| Shared Package | |
| ML23117A330 | List: |
| References | |
| M230060 | |
| Download: ML23117A331 (1) | |
Text
"..
- HITACHI Proprietary lnf'?_rmeition N~ti_fe
_ to th/$ *letter contains GEH-proprietary information*. -
- whic.h is to be withheld from pubpc disclosure in accordance with 10 CFR2.~~o.. Upon removal of Attqchment 2, th~ bap_nce of this Jett~,:_
mqy be made public:_:
M230060 April 27, 2023-Duane A. Hard~sty, Project Manager Non-Power Production and Utilization Facility Lieensing Branch Division of Advanced Reactors and Non-Power Production and Utilization Facilities Office of Nuclear Reactor Regulation US Nu.clear ReQulatory Commission Attn: Document Control Desk GE Hitachi Nuclear Energy
~!'
4!°-!. *-
~
S9ott P,. IYl\\lrrtY*
Man§ger, Faclllty Licensing 3901 Castre Hayn!! Road
__ --, ~o:-eox 78..9
~.::. --=-==Wilmington, NC 2840g.
USA T (910) 819-5950
- - --: = - scott.inurraY@ge.com
=
Subject:
GEH Response for Request for Additional Information for NRC License NO. R-3~ Decommissioning Cost Estimate Refer-ences:
(1) NRC License R-33, Docket 50-73 (2) Letter D. Hardesty (NRC) to M. Feyrer (GEH), Request for Additional Information (RAI) regarding the Decommissioning Cost Estimate for NRC License No. R-33 dated 3/11/2021 - EPID NOS. L-2020-RNW-0038 GE Hitachi Nuclear Energy Americas LLC (GEH) hereby-provides supplemental information regarding the NRC request for additional information (Reference 2) pertaining to the decommissioning cost estimate for NRC License R-33 for the GEH Nuclear Test Reactor.
Attached to this fetter are additional GEH responses to the NRC RAls.
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge. Executed on April 27, 2023.
Please contac! [118 at (910) 819-5950 if there_are any additional questions.
t
M230060 USNRC 4/27/23
_P_!:lge.2. o! ~
- 2) GEH Responses to RAls (a through e) (Contains-Propri etary lnformation)-
- 3) ~EH Responses tq RAls (a thr.ough e) (Retlacted -- Public: Version). _ - -
Cc:* G. W~rtz, USNRC/NRR/DANU/UNPL
__ SPM.23-Q17
M230060 USNRC 4/27/23 Pag~ 3 of 4 GE-Hitachi Nuclear Energy Americas LLC-AFF.IDA VIT I, Scott-I\\. Mµ~ay, state as follows:
(1)
I rut). the Mana~c. Licensing & Liabjlities of GE-Hitachi Nuclear ~nergy (GEH), and have beep pel~~teg-1lt~ _ r. *** -
function of reviewing the information described in paragraph (2) which is sought to-b.e withheld, lUld ffaye been authorized to apply for its withholding.
=
(2)
The information-sought to be withheld is provjded in Attachment 4 to GEH's letter, M230060,_ Scott P-. -
MuirayTo Duane Irarqesty, entitled "GEJI Response for Request for Additional Infoima~o.!(fo!_ ~C License
-=--
NO. R-33 Deco_rnmj~ioning Cost Estimate dated April 27, 2023. GEH prc;>prietary informati9n contained-in is identified by the statement "GEH Proprietary Information Wi$hold from Public Disclosure -
Pursuant to.lO_CFR 2.390."
(3)
In making this application for withholding of proprietary information of wllich jt is the _owner or licensee, GEH relies 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 1 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 Fid 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 are: -
(5)
(6)
- a.
Information that discloses 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.
Infocmation 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 aspects of past, present, or future GEH customer-funded development plans and prQgram?, tha_! may includ.e potential products of GEH.
- d.
Information that discloses trade secret and/or potentially patentable subject matter for which it may be desirable to obtain patent protection.
To address 10 CFR 2.390(b)(4), the information sought to be withheld is being submitted to the NRC ii!.
confidence. Tlie 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 belief, consistently been held in confidence cy GEH, not been disclosed publicly, and not been made available in.puplic s_~urces. All disclosures to t~ird parties, including any required transmittals to the NRC, have b(?en 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 are as set forth in the follo~ing paragraphs (6)
~m 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
M230060 USNRC 4/27/23 Page 4 of 4 industry knowledge, or who is the person most likely fo be subject to the terms under which it was licensed to GEH.
(7)
The procedure for approval of external release of such a document typically requires review by tlie staff manager, project manager, princip!ll scientist, or other equivalent authority for technical content, competitive effect, and determination of the accuracy of the proprietary designation. Disclosures outside GEH are 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.
(8)
The information identified in paragraph (2) above is classified as proprietary because it contains details of GEH's processes, methods, design, or manufacturing facilities.
(9)
Public disclosure of the infoflllation 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 information is part of GEH's comprehensive BWR 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 c;;omprise 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 are able to use the results of the GEH experience to normalize or verify their own process or if they are able to claim an equivalent understanding by demonstrating that they can arrive at the same or similar conclusions.
The value of ti.tis information to GEH 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 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 of perjury that the foregoing is true and correct.
Executed on this 27th day of April 2023.
sg~f GE-Hitachi Nuclear Energy Am STATE OF NORTH CAROLINA )
)
COUNTY OF _NEW HANOVER
- )
Subscribed and sworn to me, a Notary Public, in and for e State of North Carolina, this 27th day of April 2023.
Gwenn Moser NOTARY PUBLIC Brunswick County, NC My Commtaalon Expires October 18, 2027 Notary Public in and for the State of North Carolina
US NRC M230060 April 27, 2023 Page 1 of 3 GE Hitachi Nuclear Energy Company Proprietary Information - Withhold from Public Disclosure Pursuant to 10 CFR 2.390 Pursuant to letter, D. A. Hardesty (NRC) to M.F. Feyrer, GE-Hitachi Nuclear Energy Americas LLC (GEH) - Receipt and Supplemental Information Needed for Renewal Review of GEH Nuclear Test Reactor Facility Operating License No. R 33 (EPID L-2020-RNW-0038), dated 03/11/21 (ML21062A250), the NRC requests, pursuant to 10 CFR 50.75:
- a. A current decommissioning cost estimate in 2021 dollars for the GEH NTR to meet the NRCs radiological release criteria for decommissioning the facility.
Accordingly, describe the basis on how the decommissioning cost estimate was developed.
- b. A summary of total decommissioning costs broken down into the categories of labor, waste disposal, other items in current dollars, and a contingency factor.
- c. A statement of the decommissioning method to be used.
- d. A description of the means of adjusting the cost estimate and associated funding level periodically over the life of the facility, pursuant to 10 CFR 50.75(d)(2)(iii).
- e. A numerical example showing how the decommissioning cost estimate will be updated periodically in the future.
GEH Response:
- a. The estimated total cost for decommissioning of the NTR facility R-33 license is approximately $6.5 million as of December 31, 2022. Financial assurance for decommissioning funds is provided by General Electric Hitachi (GEH) in the form of a payment surety bond. A copy of the current surety bond rider #2253264 in the amount of $6,505,919 was provided to the NRC on March 31, 2022.
The costs were originally developed in 1997 based on estimates performed by Battelle Pacific Northwest Labs (PNL) published in NUREG/CR-1756, Technology, Safety and Costs of Decommissioning Reference Nuclear Research and Test Reactors, March 1982 for the Plum Brook Test Reactor (PBTR). Comparisons of the NTR facility to the facilities at PBTR were based on number of square feet, size, volume, and other factors to establish ratios that were applied to the PBTR cost estimate. This approach for estimating the cost of decommissioning the NTR is in accordance with Regulatory Guide 1.159 Assuring the Availability of Funds for Decommissioning Nuclear Reactors, Revision 2 issued October 2011.
The current estimate is based on existing facility conditions and estimates of the volume of waste material that may have to be removed and shipped to an authorized disposal site.
US NRC M230060 April 27, 2023 Page 2 of 3 GE Hitachi Nuclear Energy Company Proprietary Information - Withhold from Public Disclosure Pursuant to 10 CFR 2.390
- b. A summary of the total decommissioning costs are shown below (as of 12/31/22)
Decommissioning Cost Estimate Summary NTR Category Estimated Cost ($K)
Planning and Preparation
[REDACTED]
Decontamination and Dismantlement
[REDACTED]
Release Survey
[REDACTED]
Waste Packing and Shipping
[REDACTED]
Waste Disposal
[REDACTED]
Equipment/Supplies
[REDACTED]
Laboratory Costs
[REDACTED]
Utilities/Shared Services
[REDACTED]
NRC Inspection
[REDACTED]
Subtotal
[REDACTED]
25% Contingency
[REDACTED]
Total
$6,506
- c. A payment surety bond was established to provide decommissioning financial
US NRC M230060 April 27, 2023 Page 3 of 3 GE Hitachi Nuclear Energy Company Proprietary Information - Withhold from Public Disclosure Pursuant to 10 CFR 2.390 assurance that was submitted to the NRC by letter dated March 27, 2018,
Subject:
GEH/GNF-A Financial Assurance of Decommissioning Funds - Surety Bonds. (ADAMS Accession Number ML18087A172). Supplemental Riders to increase the bond amounts were submitted to the NRC by letter dated March 31, 2023
Subject:
GNF-A/GEH Financial Assurance of Decommissioning Funds - Surety Bond Riders (ADAMS Accession Number ML23104A417).
In addition, GEH has established a Master Standby Trust Agreement with the Bank of New York Mellon for the benefit of the NRC in the case of default or inability to direct decommissioning activities by GEH. An amended standby trust agreement was submitted to the NRC by letter dated April 5, 2018,
Subject:
GEH/GNF-A Financial Assurance of Decommissioning Funds - Standby Trust Agreement Amendments.
(ADAMS Accession Number ML18096A036).
d/e. The NTR cost estimate is reviewed, and if necessary, adjusted annually. This review considers the status of any ongoing or planned facility modifications; operational events that may impact future decommissioning; changes in regulatory requirements and industry guidance; etc. In addition, annual adjustments for inflation are made using site-specific long-term inflation rates related to nuclear facility retirement costs of between 3 and 4%.
At approximately every five years a more detailed review is performed, and the cost estimate updated as necessary. This review validates assumptions used to prepare the estimate including labor rates, labor categories, waste volumes, waste categories, analytical costs, waste disposal options, waste disposal rates, transportation and packaging costs, utility costs, taxes, insurance costs, etc.
The last detailed review of the cost estimate was performed in 2019 by an independent third-party engineering firm experienced in preparing cost estimates and completing decommissioning-related services for the nuclear industry. The independent review included site reconnaissance and measurements, scaling factors from building volumes and footprints, interviews with site personnel, and comparisons to previous other decommissioning projects. As a result of this independent third-party review, the NTR decommissioning cost estimate was essentially unchanged in 2019. The current cost estimate (as of 12/31/22) is approximately $6.5 million.