ML18114A459

Forwards Affidavit of Tj Pashos of Nuclear Svcs Corp Re Application for Withholding Proprietary Info from Public Disclosure

ML18114A459
Person / Time
Site:	Beaver Valley, Surry, Maine Yankee, FitzPatrick
Issue date:	04/13/1979
From:	William Kennedy, Kennedy W L STONE & WEBSTER, INC.
To:	Harold Denton Office of Nuclear Reactor Regulation
References
NUDOCS 7904230191
Download: ML18114A459 (6)

Text

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e STONE & WEBSTER ENGINEERING CORPORATION 245 SUMMER STREET, BOSTON, MASSACHUSETTS ADDRESS ALL CORRESPONDENCE TO P.O. BOX 2325, BOSTON, MASS. 02107 BOSTON DESIGN NEW YORK CONSTRUCTION CHERRY HILL. N . .J. REPORTS DENVER EXAMINATIONS CHICAGO CONSULTING HOUSTON ENGINEERING PORTLAND, OREGON SAN DIEGO WASHINGTON, D.C.

Dr. Harold Denton, Director April 13, 1979'.

Office of Nuclear Reactor Regulation U.S. Nuclear ~egulatory*commission Wash~ngton, D.C. 20555

Dear Sir:

OPERATING LICENSE NOS. DPR 32,. 36, 37, 59 and 66 APPLICATION FOR WITHHOLDING PROPRIETARY INFORMATION.FROM PUBLIC DISCLOSURE

Reference:

STONE & WEBSTER ENGINEERING CORPORATION, PROPRIETARY COMPUTER PROGRAMS Enclosed herewith.is the original signed Affidavit of Nuclear Services Corporation (Quadrex), a copy of which was submitted.to you in conjunction with Stone & Webster ~ngineering Corporation's application for withholding several computer programs from public disclosure *. That application was made via letter, dated April 6, 1979, and was received by your office on April 9, 1979.

If you or members.of your staff have any questions or require clarification, please.contact Mr. D.T. King or Mr. S.B. Jacobs at (617): 973-2034 and (617)

-973-5264 respectively.

Enclosure cc: Harold Shapar, Esq.

Office of the Executive Legal Director, NRC 79042301'11

• -* r AFFIDAVIT STATE OF CALIFORNIA COUNTY OF SANTA CLARA ss Before me, the undersigned authority, personally appeared Thomas J. Pashas, who, being by me duly sworn according to law, de-poses and says that he is authorized to execute this Affidavit on behalf of Quadrex Corporation ("Quadrex") and that the averments of fact set forth in this Affidavit are true and correct *to the best of his knowledge, information and belief:

Thomas J. Pashas Senior Vice President Engineering Sworn to and subscribed before me on this f;Zi day of ~ 1979.

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e <'I (1) I am Senior Vice President, in Nuclear Services Corporation, a Division, of Quadrex Corporation and as such, I have been specifically delegated the function of reviewing the proprietary information* sought to be

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withheld from public disclosure in connection with the sei~mic analysis of piping systems, and am authorized to apply for its withholding on*

behalf of the Quadrex Corporation.

(2) I am making this Affidavit in conformance with the provisions of 10 CFR Section 2.790 of the Commission's regulations and in con-junction with the Stone &Webster's application for withholding accompanying this Affidavit:

(3) I have personal knowledge of the criteria and *procedures utilized by Quadrex, Nuclear Services Corporation in designating 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 in-

. formation 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 Quadrex.

(ii) The fnformation is of a type customarily held in confidence by Quadrex and not customarily disclosed to the public. Quadrex has a rational basis for determining the types of information customarily held in confidence by it.

On this basis, 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 potent1al competitive

.e 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 Quadrex competi-tors without license from Quadrex constitutes a competi-tive 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 setures 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 comp~titive position in the design, programing, utilization, assurarice of.

quality, delivery of associated* services, or licensing a similar producti (d) It reveals cost or price information, production capa-cities, budget levels, or commercial strategies *of Quadrex, its customers or suppliers.

There are sound policy reasons behind the Quadrex basis~

for such designs which include the following:

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

(b) It is information \A/hich. _is marketable. in many ways.

The extent to which such information is available to competitors diminishes the *Quadrex ability to sell

• .products and* serv-ices* involving the use of the-informat ion.

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(c) _ Use by our competitor would put Quadrex at a competitive disadvantage by reducing his expend-itures 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 infor-mation, any one component may be the key to the entire puzzle, thereby depriving Quadrex of a competitive advantage.

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

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

(iii) The information is being transmitted to the Commission in confidence and, under the provisions of 10 CFR Section - i

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2,790, it is to be received in confidence by the Commission.

(iv) The information is not available in public sources to the best of our knowledge and belief.

(v) The proprietary' information sought to be withheld in this submittal is the complete computer program listing of the NUPIPE computer pro9.ram in acc_ordance with Encl os~res 1 through 3 of the NRC letter from Victor Stello to Mr. W.

L. Profitt of Virginia Electric arid Power Company, dated April 2, 1979.

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This information enables Quadrex to: .

(a) Justify the design basis for piping systems (b) Assist its customers to obtain licenses Further, this infromation has substantial commercial value as follows:

(a) Quadrex sells the use of the informati*on to its customers for purposes of meeting NRG requirements for licensing documentation.

(b) Quadrex.uses the information to perform and justify analyses which are sold to custonrers.

(c) Quadrex uses the information to sell piping analyses and related services to its customers .

. Public .disclosure of this information is likely to cause sub-stantial harm to the competitive position of Quadrex in selling piping.

analysis computer programs.

This information is a product of Quadrex computer software and piping analysis expertise. As such, it is broadly applicable to the analysis and licensing of piping systems in light water reactors. The development of this information is the result of many years of Quadrex effort and the expenditure of a considerable sum of money. While the analysis for this specific application was not_unique, in ~rder for competitors of Quadrex to duplicate this. information would require the investment of substantially the same amount of effort and expertise that Quadrex possesses and which

• was acquired over.a period of more than five years and by considerable investment of resources. Over the years, this has included the development of heat transfer codes, nuclear analysis codes, transient analysis codes, and an experimental data base to support theni .

Further, the deponent sayeth not.