ML23187A143

Supplement to License Amendment Request for American Centrifuge Operating, LLCs License Application for the American Centrifuge Plant

ML23187A143
Person / Time
Site:	07007004
Issue date:	06/29/2023
From:	Karen Fitch American Centrifuge Operating
To:	John Lubinski Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
ACO 23-0055, EPID L-2023-LLA-0024, EPID L-2023-LLA-0024
Download: ML23187A143 (1)

Text

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CUI// SP-EXPT / SP-SRI I SP-UCNI / PROPIN // NOFORN Export Controlled Information, Security-Related Inforhlation - Withhold Under 10 CFR 2.390, Unclassified Controlled Nuclear Information, and Proprietary Information

• June 29, 2023 ACO 23-0055

• AT1N: Document Control Desk John W. Lubinski, Director Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Washington, DC 20555-0001

American Centrifuge Plant; Docket Number 70-7004; License Number SNM-2011

Supplement to License Amendment Request for American Centrifuge Operating, LLC's License Application for the American Centrifuge Plant - EPID L-2023-LLA-0024

INFORMATION TRANSMITTED HEREWITH IS PROTECTED FROM PUBLIC DISCLOSURE AS: 1) CONFIDENTIAL COMMERCIAL OR FINANCIAL INFORMATION AND/OR TRADE SECRETS PURSUANT TO 10 CFR 2.390 AND 9.17(a)(4); 2) SECURITY-RELATED INFORMATION PURSUANT TO 10 CFR2.390; AND 3) EXPORT CONROLLED INFORMATION PURSUANT TO 10 CFR PART 810

Dear John Lubinski:

The purpose of this letter is to provide supplemental proposed changes to the U.S. Nuclear Regulatory Commission (NRC) for continued reyiew and approval to address requests for additional information (RAis) related to American Centrifuge Operating, LLC's (ACO) License Amendment Request.

On June 5, 2023, staff from the NRC and ACO held a conference call to discuss clarifications needed for ACO's amendment request dated February 13, 2023 (Reference 1). On June 8, 2023 (Reference 2), the NRC issued the formal RAis for ACO's response..

ACO's responses to these RAis are being provided as Enclosure 1 ()fthis letter.*.Also, provided in are related proposed changes to LA-3605-0003A,Addendum 1 of the Integrated Safety Analysis Summary for the American Centrifuge Plant-HALEU Demonstration. As discussed in the response to RAI EP-1, LA-3605-0003A was revised to update the references to the fire hazards

Document/matter transmitted contains CUI// SP-EXPT /SP-SRI/ SP-UCNI / PROPIN II NOFORN Export Con.trolled Information, Security-Related Information - Withhold Under 10 CFR 2.390, Unclassified Controlled Nuclear Information, and Proprietary Information When separated from Enclosures 1 through 7, this cover letter and Enclosure 8 are uncontrolled.

• ,,.{aic5lD American Centrifuge Operating, LLC / V 11 _.)

3930 U.S. Route 23 South - P.O. Box 628 "' /" 1sS Piketon, OH 45661 /V /'f CUI// SP-EXPT /SP-SRI/ SP-UCNI / PROPIN II NOFORN Export Controlled Information, Security-Related Information - Withhold Under 10 CFR 2.390, Unclassified Controlled Nuclear Information, and Proprietary Information

John W. Lubinski June 29, 2023 ACO 23-0055, Page 2

analyses and are noted with revision bars in the right-hand margin. Based upon the 10 Code of Federal Regulations (CFR) 70.32 and 70.72 evaluations, these proposed changes are administrative in nature and do not warrant the NRC's review and approval; however, are provided for completeness to assist in the review efforts.

Additionally, as requested within the NRC's RAis, ACO is providing reference documentation as follows:

• DAC-3101-0025, Revision 0, Fire Scenario Document for X-3001 Building (Enclosure 3)

• DAC-3001-FP-0100, Revision 5, Fire Hazard Analysis for Building X-3001 (Enclosure 4)

• DAC-3101-0024, Revision 0, Analysis of Postulated Forklift Fire Exposure to a 30B Cylinder (Enclosure 5)

• DAC-3101-0024, Revision 1, Analysis of Postulated Forklift Fire Exposure to a 30B Cylinder (Enclosure 6), and

• DAC-3901-0005, Revision 6, Evaluation of No Need for an Emergency Plan for the HALEU Demonstration (Enclosure 7)

Enclosures 1, 2, 5, 6, and 7 contain Security-Related Information; therefore, ACO requests these enclosures be withheld from public disclosure pursuant to 10 CFR 2.390( d)(l ). Enclosures 2, 3, and 4 have been determined, in accordance with the guidance provided by U.S. Department of Energy (DOE), to contain Export Controlled Information and must be protected from disclosure per the requirements of 10 CFR Part 810. Enclosures 3 and 4 have also been determined, in accordance with the guidance provided by the DOE, to contain Unclassified Controlled Nuclear Information and must be protected from disclosure per the requirements of 10 CFR Part 1017. Additionally, Enclosures 1, 2, and 7 contain Proprietary Information; therefore, ACO requests these enclosures be withheld from public disclosure pursuant to 10 CFR 2.390(a)(4). An affidavit required by 10 CFR 2.390(b)(l)(ii) is provided as Enclosure 8 of this letter.

If you have any questions regarding this matter, please contact me at (740) 897.-3859.

Sincerely, Ji~!JiYi Regulatory Manager

Enclosures:

As stated

Document/matter transmitted contains CUI// SP-EXPT / SP-SRI I SP-UCNI / PROPIN // NOFORN Export Controlled Information, Security-Related Information - Withhold Under 10 CFR 2.390,

• Unclassified Controlled Nuclear Information, and Proprietary Information When separated from Enclosures 1 through 7, this cover letter and Enclosure 8 are uncontrolled.

CUI// SP-EXPT /SP-SRI/ SP-UCNI / PROPIN // NOFORN Export Controlled Information, Security-Related Information Withhold Under 10 CFR 2.390, Unclassified Controlled Nuclear Information, and Proprietary Information

John W. Lubinski June 29, 2023 ACO 23-0055, Page 3

References:

1. ACO 23-0006 from K.L. Fitch to J. Lubinski (NRC) regarding License Amendment Request for American Centrifuge Operating, LLC's License Application for the American Centrifuge Plant dated February 13, 2023

2. NRC Email from J. Tobin to K.L. Fitch (ACO) regarding For Action-RAis for Centrus Phase II (EPID L-2023-LLA-0024) (Via Box Drop), dated June 8, 2023

cc (without Enclosures, unless otherwise noted):

Y. Faraz, NRC HQ (Enclosures)

A. Ford, DOE Idaho S. Harlow, DOE NE J. Hutson, Contract Support (Enclosures)

J. Lingard, DOE Idaho L. Pitts, NRC Region II (Enclosures)

J. Tobin, NRC HQ (Enclosures)

T. Vukovinsk:y, NRC Region II

Document/matter transmitted.contains CUI// SP-EXPT I SP-SRI/ SP-UCNI / PROPIN // NOFORN Export Controlled Information, Security-Related Information Withhold Under 10 CFR 2.390, Unclassified Controlled Nuclear Information, and Proprietary Information When separated from Enclosures 1 through 7, this cover letter and Enclosure 8 are uncontrolled.

Enclosure 8 of ACO 23-0055

Affidavit

Information Contained Within Does Not Contain Export Controlled Information Reviewing Official: #171

Date: 06/28/2023 AFFIDAVIT OF LARRY B. CUTLIP SUPPORTING APPLICATION TO WITHHOLD FROM PUBLIC DISCLOSURE CERTAIN INFORMATION PROVIDED TO NRC IN LETTER ACO 23-0055

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 ACO's responses, proposed changes, and reference documentation

supporting the U.S. Nuclear Regulatory Commissions' (NRC) request for additional information

(RAls) in relation to the License Amendment Request for the American Centrifuge Plant (NRC

Materials License SNM-2011) as described in the letter ACO 23-0055, 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.

ii. 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 ofCentrus'/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.

t) 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 within Enclosures 1, 2, and 7

of ACO 23-0055. Enclosure 1 provides ACO's responses to the NRC's request for

additional information as it relates to ACO's amendment request for Phase 2 of the high-assay low enriched uranium (HALEU) Demonstration. Enclosure 2 provides related

proposed changes to LA-3605-0003A, Addendum 1 of the Integrated Safety Analysis

Summary for the American Centrifuge Plant-HALEU Demonstration. Specifically, these

proposed changes are administrative in nature and do not warrant the NRC's review and

approval; however, are provided for completeness to assist in the review efforts. As

discussed within Enclosure 1, LA-3605-0003A was revised to update the references to the

fire hazards analyses. Enclosure 7 provides Revision 6 ofDAC-3901-0005, Evaluation of

No Need for an Emergency Plan/or the HALEU Demonstration. Specifically, Enclosure 7

provides the evaluation stipulated in 10 CFR 70.22(i) 1 (i) to demonstrate that no Emergency

Plan is needed for the deployment of ACO's HALEU Demonstration Program.

Enclosures 1, 2, and 7 discuss the types of accidents associated with the HALEU

Demonstration Program as documented within LA-3605-0003A; therefore, are all

determined to be proprietary.

Public disclosure of this proprietary information is likely to cause substantial harm to the

competitive position of ACO because it may enhance the ability *Of competitors to position

and provide similar products. Moreover, disclosure of this information may provide insights

into the design of ACO's American Centrifuge technology, including structures, systems,

and components categorized as Security-Related Information and/or Export Controlled

\\

Information.

Further, this information has substantial commercial value as follows:

• The development of the information described in part is the result of applying many

hundreds of person-hours and the expenditure of thousands of dollars on design and

analysis activities to achieve the information that is sought to be withheld; and

• In order for a competitor of ACO to duplicate the information sought to be withheld, a

similar process would have to be undertaken and a significant effort and resources would

have to be expended.

Further the deponent sayeth not

Larry B. Cutlip, having been duly sworn, hereby confinns 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.

On this 29111 day of June 2023, 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.

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