ML20335A330

American Centrifuge Operating, LLC, Affidavit for Larry B. Cutlip

ML20335A330
Person / Time
Site:	07007004
Issue date:	11/02/2020
From:	Cutlip L American Centrifuge Operating
To:	Office of Nuclear Material Safety and Safeguards
Shared Package
ML20335A328	List: ML20335A329 ML20335A330
References
ACO 20-0040
Download: ML20335A330 (6)

Text

Enclosure 2 of ACO 20-0040 Affidavit Information Contained Within Does N:ot Contain Export Controlled Information Rev1ewmg Offic1al #1014

'Date 1on.in.020

,I

. AFFIDAVIT OF LARRY B. CUTLIP SUPPORTING APPLICATION 'IO WITHHOLD FROM PUBLIC DISCLOSURE CERTAIN INFORMATION PROVIDED TO*NRC IN LETTER ACO 20-0040 I, Larry B. Cutlip, of American Centrifuge Opera~g, 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 ':Vhich is referenced

• herein relating to ACO' s License Amen~ent Request for the American Centrifuge Plant' (ACP)

(NRC Materials License SNM-201 ~) as the 'described in letter ACO 20-0040, which AC9 seeks fo have withheld fr~m public 1iscl.osure pursuant to section J47 of the Atomic Energy Act (AEA),

as rupended, 42 U:S.C. § 2167, and 10 CPR 2.390(a)(4), and 9.l 7(a)(4); and (b) apply for the

• w~thholdi.bg of sue~ information from public disclosure ~r the Nuclear Regulatory-Commission (NRC) on behalf o.f ACO.

• 2. Consistent wi~ the provisions ~f 10* CPR 2.390(bX4) of.the Commission's *regulatic;ms? the following 'is :furnished for consideration by the Commissi<?n

• in determining whether the*

information sought to be withheld fyom public disclosure should .be withhel~.

1. The informatio.n sought to be*withheld from public disclosure is own~ and has been held in confidence by ACO.

ii. The information is of atype 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 apd, in that connection, utilizes a system to de~~ine when and whether to hold certain types of iofonnation in confidence. The application of that system and the *substance of th~t system constitute ACO policy and provide the rational basis required. Under that. system, information is held in*confidence if ~t falls in one or .more of several types, the rele~e of whiqh might result in the loss of an existing or potential

competitive advantage, as'fol~ows:

• a) The information reveals the distinguishing aspects of a process (or component, structure, tool, method, etc.) "'.here presentation of its use by any o~ ACO's *competitors without license from ACO constitutes a competitiv~ economic advantage over other companies.

b) It consi~ ~f supporting* data, iJ?.cluding test data, relative to a process (o; componen~

structure, too't, method, etc.), the application of which data secures a competitive

• economic ~vantage (e.g., by. ?Ptimization or improved ip.arketability).

• c) Its use by a. competitor would reduce their expenditure of resources or improve their *

~onipetitive position in the design, manut:acture, shipment, installation, assurance ~f quality, or licensi11:g a similar product.

'd) It reveals cost or price information, production capacities, budge~ levels, or co~ercial strategies of ACO, its *customers or suppliers. .

e) If reveals aspe<?ts o f ~ presen~ or future ACO or customer*funded development plans and programs of potential ~o~ercial value to ACO.

• f)

• It contains patentable ideas, for which p~tent protection may be desirable.

g) fr reveals information con~rning the terms and cond.itions, work perfo)1lled,

~ministration, performance under or extensi~n 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 gi~es ACO a* competitive advantage over its

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

_position.

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

... informati9n is avail~~e to CO:Qlpetitors dimini~hes. ACO's ability to sell products* and

services involving the use of the information.

c) Use by our.competitors w_ould put ACO at a competitive disadvantage by ~educing their

• expenditure of resources at ACO expense. ,

d) Each component of proprietary information pertinent to a particular co~petitive

• advantage is potentially as valuable as the total competitiye advantage. If competit_ors acquire components or proprietary information, any one component may be the key .to the entire p~le, _thereby depriving ACO of a competitive advantage.

e) Unrestricted disclosure would jeopardize th~ position of prominence of ACO in the world market,and thereby give a market advantage to th~ competition of those countries.

f) The ACO capacity to invest corporate assets in research*and development depends upon the success in obtaining and main~g a competitive ad".antage.

iv. The information is being transmitted to the Commis~ion in confidence ahd,' 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* 9r available information has not been pre;iously ~mployed 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 'Yithin Enclosure 1*of letter ACO.

20-0040. _This enclosure provides the evaluation stipulated in* 10 CFR 70.22(i)(l)(i) to demonstrate that no.Emergency Plan is _needed for the deployment of ACO's- high-assay low enriched uranium (HALEU) Demonstration.Program._as referenced within Chapter 8.0 of LA~

3605-000,1, License Application for the Americ~ Centrifuge Plant; therefore, determined to be proprietary.

. Public disclosure of this proprietary information _is lik~ly to cause. substantial harm* to .the

~mpetitive position of ACO because it may enhance the ability of competitors to position apd prn':'ide similar products. Moreover, disclosure of.this information may provide insights in~ the design of ACO's American:centrifuge technology, ~eluding ~ctures, srstems; and components categorized as Security-Related Information and/or Export Controlled Information. 1;1tls evaluation also discusses the types of accidents associated with the HALED Demonstration Pro~ as documented wi~in LA-369~-0003A, Addendum I ofthe Integrated Safety A'nalysis Summary for the American Centrifuge Plant - H4-L,EU Demof!S(ration.

Further~ this information has subst8:fitial.commercial value as fol19ws:

-* The development of the information described in part is ~e result of applying many hundreds of person-hours and the expenditure of thousands o'f dollars on design and an~lysis activities

~ achieve the information that is sought to be withheld; and . *

• In o~der for a competitor of ACO to duplicate the information sought ~o be withheld, a similar process w~mlq have to be undertaken and a s~gnificant effort and resources would have to be expended.

'FW1hcr the deponent Ayeth not:

Larry B. Cutlip, *~.,bceil duly sworn, 'hereby~~ that I am the President,* of

• . American .Centrifuge . . Operating. . - I-~-

. that*

LLC, ' .

authori~

. ~ . on behalf . of ACO .to review* ~

• ..

• infonna~~n ~_hereto and ~o sign and.iii<<? With the{!,$; Nuclear R.~aiory ~ o n this

.. ' _a~davit ~ the~ents ~ ' and ~the ~umde_~ nurtters*.S:d forth~are~e

. : .. and*co~ to ~.best of my ~edge, in~on,:and.~li~f...

', \.

.. J ..

by rqe to.be the pcrsonwbc;>se name is subscribed to withiri the instnunent and-~wledg~ that be

. . . . ..** . *.. . . . . . *./

.* : . executed tlie same for~- pmposes thercin ~~ .~ .

.In wi~ hereofi'tiereunto ~ ~yband and offici'ai'seal'.

{

. Ericka C. Wilkerson_. . .. . ,

. : S'8te of Tennessee Notary Public * *:-

. : * . ~y -~~on expi~ ~y 22, ioo,4. *.

' . -,~-. . __ . _ ~

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