ML031080506

Application for Withholding Proprietary Information from Public Disclosure

ML031080506
Person / Time
Site:	Indian Point
Issue date:	04/01/2003
From:	Hastings C Caldon
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CAW 03-02
Download: ML031080506 (7)

Text

Caldon, Inc.

April 1, 2003 CAW 03-02 Document Control Desk U. S. Nuclear Regulatory Commission Washington, DC 20555 APPLICATION FOR WITHHOLDING PROPRIETARY INFORMATION FROM PUBLIC DISCLOSURE

Subject:

1) Responses to Questions 13, 14 and 16 contained in the Entergy Nuclear Operations, Inc. letter to NRC (NL-03-058) regarding the reply to NRC Request for Additional Information for the Indian Point 2 1.4% Measurement Uncertainty Power Uprate.

2) Caldon's ER-290, "Bounding Uncertainty Analysis for Thermal Power Determination at Indian Point Unit 2 Nuclear Power Station using the LEFM1/

System"

3) MPR-1614 October 1995, "Appendix B of Feedwater Flow Measurement with LEFM Chordal Systems at Indian Point Unit 2 - Configuration and Uncertainty Analysis" Gentlemen:

This application for withholding is submitted by Caldon, Inc. ("Caldon") pursuant to the provisions of paragraph (b)(l) of Section 2.790 of the Commission's regulations. It contains commercial strategic information proprietary to Caldon and customarily held in confidence.

The proprietary information for which withholding is being requested is identified in the subject submittal. In conformance with 10 CFR Section 2.790, Affidavit CAW-03-01 accompanies this application for withholding setting forth the basis on which the identified proprietary information may be withheld from public disclosure.

Accordingly, it is respectfully requested that the subject information, which is proprietary to Caldon, be withheld from public disclosure in accordance with 10 CFR Section 2.790 of the Commission's regulations.

1070 Banksville Avenue

• Pittsburgh, PA 15216 Tel 412-341-9920

• Fax 412-341-9951 -Web www caldon net

Document Control Desk Page 2 April 1, 2003 Correspondence with respect to this application for withholding or the accompanying affidavit should reference CAW-03-02 and should be addressed to the undersigned.

Very truly yours, Calvin R. Hastings President and CEO Enclosures

April 1, 2003 CAW-03-02 AFFIDAVIT COMMONWEALTH OF PENNSYLVANIA:

ss COUNTY OF ALLEGHENY:

Before me, the undersigned authority, personally appeared Calvin R. Hastings, who, being by me duly sworn according to law, deposes and says that he is authorized to execute this Affidavit on behalf of Caldon, Inc. ("Caldon") and that the averments of fact set forth in this Affidavit are true and correct to the best of his knowledge, information, and belief:

Calvin R. Hastings, President and CEO Caldon, Inc.

Sworn to and subscribed before me this

--. :-___day of 2003 OTARY PUBLIC Notarial Seal Joann B. Thomas, Notary Pubic pittsurgh. Alleghey Cont My Commission Expires uly 28, 200 l Member. PeLnnsytvania Ass clatarl ct Notanes

1. I am the President and CEO of Caldon, Inc. and as such, I have been specifically delegated the function of reviewing the proprietary information sought to be withheld from public disclosure in connection with nuclear power plant licensing and rulemaking proceedings, and am authorized to apply for its withholding on behalf of Caldon.

2. I am making this Affidavit in conformance with the provisions of 10CFR Section 2.790 of the Commission's regulations and in conjunction with the Caldon application for withholding accompanying this Affidavit.

3. I have personal knowledge of the criteria and procedures utilized by Caldon in designated information as a trade secret, privileged or as confidential commercial or financial information.

4. Pursuant to the provisions of paragraph (b) (4) of Section 2.790 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.

(i)

The information sought to be withheld from public disclosure is owned and has been held in confidence by Caldon.

(ii)

The information is of a type customarily held in confidence by Caldon and not customarily disclosed to the public. Caldon 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 constitutes Caldon policy and provides 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 advantage, as follows:

(a) The information reveals the distinguishing aspects of a process (or component, structure, tool, method, etc.) where prevention of its use by any of Caldon's

competitors without license from Caldon 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 his expenditure of resources or improve his 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 Caldon, its customer or suppliers.

(e) It reveals aspects of past, present or future Caldon or customer funded development plans and programs of potential customer value to Caldon.

(f) It contains patentable ideas, for which patent protection may be desirable.

There are sound policy reasons behind the Caldon system which include the following:

(a) The use of such information by Caldon gives Caldon a competitive advantage over its competitors. It is, therefore, withheld from disclosure to protect the Caldon competitive position.

(b) It is information which is marketable in many ways. The extent to which such information is available to competitors diminishes the Caldon ability to sell products or services involving the use of the information.

(c) Use by our competitor would put Caldon at a competitive disadvantage by reducing his expenditure of resources at our 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 of proprietary information, any one component may be the key to the entire puzzle, thereby depriving Caldon of a competitive advantage.

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

(f) The Caldon capacity to invest corporate assets in research and development depends upon the success in obtaining and maintaining a competitive advantage.

(iii) The information is being transmitted to the Commission in confidence, and, under the provisions of 1 OCFR Section 2.790, it is to be received in confidence by the Commission.

(iv) The information sought to be protected is not available in public sources or available information has not been previously employed in the same manner or method to the best of our knowledge and belief.

(v)

The proprietary information sought to be withheld in this submittal is that which is appropriately marked 1) Responses to Questions 13, 14 and 16 contained in the Entergy Nuclear Operations, Inc. letter to NRC (NL-03-058) regarding the reply to NRC Request for Additional Information for the Indian Point 2 1.4% Measurement Uncertainty Power Uprate; 2) Caldon's ER-290, "Bounding Uncertainty Analysis for Thermal Power Determination at Indian Point Unit 2 Nuclear Power Station using the LEFM41 System"; 3) MPR-1614 October 1995, "Appendix B of FeedwaterFlow Measurement with LEFM Chordal Systems at Indian Point Unit 2 - Configuration and Uncertainty Analysis".

This information is part of that which will enable Caldon to:

(a) Demonstrate the design of the LEFMq and accuracy of the LEFM4 flow and temperature measurements, as well as the improved calorimetric thermal power accuracy based on the LEFM'1 measurements.

(b) Demonstrate the reliability of the LEFMq based on design features and on compiled field experience data.

(c) Establish technical and licensing approaches for the application of the improved accuracy of this method toward increasing thermal power.

(d) Assist customers in obtaining NRC approval for increases in thermal power based on appropriate use of the LEFM4 for calorimetric power measurement.

Further this information has substantial commercial value as follows:

(a) Caldon plans to sell the LEFM41 and use of similar information to its customers for purposes of meeting NRC requirements for operation at increased thermal power.

(b) Caldon can sell support and defense of the technology to its customers in the licensing process.

Public disclosure of this proprietary information is likely to cause substantial harm to the competitive position of Caldon because it would enhance the ability of competitors to provide similar flow and temperature measurement systems and licensing defense services for commercial power reactors without commensurate expenses. Also, public disclosure of the information would enable others to use the information to meet NRC requirements for licensing documentation without the right to use the information.

The development of the technology described in part by the information is the result of applying the results of many years of experience in an intensive Caldon effort and the expenditure of a considerable sum of money.

In order for competitors of Caldon to duplicate this information, similar products would have to be developed, similar technical programs would have to be performed, and a significant manpower effort, having the requisite talent and experience, would have to be expended for developing analytical methods and receiving NRC approval for those methods.

Further the deponent sayeth not.