ML20008E205

Forwards Ew O'Rorke Affidavit Supplementing GE 801014 Motion for Protective Order in Matter of CP Extension. Notice of Special Appearance & Certificate of Svc Encl

ML20008E205
Person / Time
Site:	Bailly
Issue date:	10/17/1980
From:	Firestone E GENERAL ELECTRIC CO.
To:	Bright G, Cole R, Grossman H Atomic Safety and Licensing Board Panel
References
NUDOCS 8010240408
Download: ML20008E205 (12)

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GENER AL h ELECTRIC NUCLEAR ENERGY BUSINESS GROUP GENERAL ELECTRIC COMPANY,175 CURTNER AVE., SAN JOSE, CAUFORNIA 95125 LEGAL OPERATION Mail Code 823 (408) 925-3654 October 17, 1980 Herbert Grossman, Esquire M @

Atomic Safety and Licensing p\ c)

Board Panel _ _ . _ ,

U. S. Nuclear Regulatory -

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Washington, D. C. 20555 9 ~72:;gs>El Mr. Glenn O. Brigh t Atomic Safety and Licensing /,

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Board Panel 4/ N U. S. Nuclear Regulatory #ro l -

Commission Washington, D. C. 20555 Mr. Richard F. Cole Atomic Safety and Licensing Board Panel U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Re : In the Matter of Northern Indiana Public Service Company (Bailly Generating Station , Nuclear-1)

Docket No. 50-367 (Construction Permit Extension)

Gentlemen :

As indicated in General Electric Company's Motion for Protective Order dated October 14, 1980, General Electric hereby submits the Affidavit of Mr. Eugene W.

O' Rorke supplementing this Motion.

Very truly s l

Edward A. Firestone Attorney for General Electric Company l 3

cc: All parties on Service List go o ?' i 8010240 W p

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Before the Atomic Safety and Licensing Board In the Matter of ) Do ck e t No. 50-367

)

NORTHERN INDIANA PUBLIC SERVICE ) (Construction Permit COMPANY ) Extension)

)

(Bailly Generating Station, )

Nuclear 1) )

NOTICE OF SPECIAL APPEARANCE Notice is hereby given that the undersigned attorney herewith enters a special appearance on behalf of General Electric Company (GE) in the above-captioned matter.

In accordance with 10 C. F. R. 5 2.713(a), the following information is provided:

Name: Edward A. Firestone Address: General Electric Conpany 175 Curtner Avenue - M/C 82 3 San Jose , California 95125 Telephone Number: (408) 925-3654 Eligibility: Admitted to practice before the duprene Court of the State of California and the United States District Court for the Northern District of California Name of Party Appearing Specially: General Electric Company Respe full s ' tte d,

• 30 Edward A. Firestone Attorney for General Electric Company Dated: October 17, 1980

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Be fore the Atomic Safety and Licensing Board In the Matter of ) Docket No. 50-36 7

)

NORTHERN INDIANA PUBLIC SERVICE ) (Construction Permit COMPANY ) Extension)

)

(Bailly Generating Station. )

Nuclear 1) )

CERTIFICATE OF SERVICE I hereby certify, this 17th day of October,1980, that copies of GE's Notice of Special Appearance and Affi-davit in Support of the Motion for Protective Order have been served by mail, first clasu and postage prepaid, upon the following:

Herbert Grossman, Esquire U. S. Nuclear Regulatory Ccmmission Washington, D. C. 20555 Glenn O. Bright U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Richard F. Cole i

U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Howard K. Shapar, Esquire Executive Legal Director U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Dr. George Schultz 80 7 Eas t Coolspring Michigan City, Indiana 46360 Robert J. Vollen, Esquire c/o BPI ,

109 North Dearborn Street Suite 1300 Chicago, Illinois 60602 l

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Edward W. Osann, Jr. , Esquire One IBM Plaza Suite 4600 Chicago, Illinois 60611 William H. Eichhorn, Esquire 524 3 Hohman Avenue Hammond, Indiana 46320 Mr. Mike Olszanski Mr. Clifford Mezo .

United Steelworkers of America 3703 Euclid Avenue East Chicago, Indiana 46312 Tyrone C. Fahner Attorney General, State of Illinois Environmental Control Division 188 West Randolph Street Suite 1215 Chicago, Illinois 60601 Richard L. Robbins , Esquire 53 West Jackson Boulevard Chicago, Illinois 60604 Mr. George Grabowski Ms. Anna Grabowski 7413 W. 136 th Lane Ce dar Lake , In di ane. 46303 Stephen Laudig, Esquire 21010 Cumberland Road Noblesville , Indiana 46060 Maurice Axelrad Kathleen Shea Lowenstein, Newman, Reis , Axelrad & Toll 1025 Connecticut Avenue, N.W.

Washington, D. C. 20036 Robert W. Hammesfahr, Esquire 200 East Randolph Street Suite 7300 Chicago , II'linois 60601 Diane B. Cohn Suite 700 200 0 P Stree t ,. N. W.

Washington, D. C. 20036

Atomic Safety and Licensing Appeal Board Panel U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Docketing and Service Section Office of the Secretary U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Edward A. Fires tone General Electric Company 175 Curtner Avenue - M/C 823 San Jose, California Attorney for General Electric Company DATED: October 17, 1980

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Before the Atomic Safety and Licensing Board In the Matter of ) Docket No. 50-367

)

NORTHERN INDIANA PUBLIC SERVICE ) (Construction Permit COMPANY ) Extension)

)

Bailly Generating Station, )

Nuclear 1) )

AFFIDAVIT OF EUGENE W. O'RORKE I, Eugene W. O'Rorke, being duly sworn, depose and state as follows :

1. I am General Manager, Domestic BWR Projects Department. I have held this position since October 24, 1977.

I have been delegated the responsibility to review the docu- I ments described in paragraph 2 to determine whether they contain proprietary information.

2. I have read and am familiar with certain contracts and associdted amendments (Contracts ) be tween General Electric Company (GE) and Northern Indiana Public Service Company (NIPSCO) to supply a nuclear steam supply system (NSSS) and a turbine generator for the Bailly Station.

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3. In designating material as proprietary, General Electric utilizes the definition of proprietary information and trade secrets set forth in the American Law Institute's Restatement of Torts, Section 757. This definition provides:

"A trade secret may consist of any formula, pattern, device or compilation of information which is used in one's business and which gives him an opportunity to obtain an. advantage over competitors who do not know or use it . . . .

A substantial element of secrecy must exist, so that, except by the use of improper means, there would be difficulty in acqui ring information Some factors to be considered in deter-ndning whether given information is one's trade secret are: (1) the extent to which the informa-tion is known outside of his business; (2) the extent to which it is known by employees and others involved in his business; (3) the extent of measures taken by him to guard the secrecy of the information; (4 ) the value of the information to him and to his competitors; (5 ) the amount of effort or money expended by him in developing the information; (6) the ease or difficulty with which i the information could be properly acquired or duplicated by others. "

4. Some examples of categories of information which fit into the definition of proprietary information are: ,

a. Information that discloses a process, method or apparatus where prevention of its use by General Electric competitors without license from General Electric constitutes a competitive economic advantage over other companies;

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b. Information consisting of supporting data and analyses, including test data, relative to a process, method l

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or apparatus, the application of which provide a competitive economic advantage, e.g. , by optimization or improved market-ability;

c. Information which if used 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 of a similar .

product;

d. Information which reveals cost or price information, production capacities, budget levels or commercial strategies of General Electric, its customers or suppliers;

e. Information which reveals aspects of past, present or future General Electric customer-funded develop-ment plans and programs of potential commercial value to General Electric;

f. Information which discloses patentable subject matter for which it may be desirable to obtain patent pro-tection;

g. Infcimation which General Electric must treat as proprietary according to agreements with other parties.

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4. a. GE has customarily held and continues to hold its Contracts for all NSSS and turbine generators, including those it has with NIPSCO, proprietary. Within the Company, the Contracts are provided to employees only on a need to know basis. Dissemination is restricted and distri-bution of the limited numbers of copies of the Contrace. As controlled.

b. GE also endeavors to maintain confidential treatment of its turbine generator and NSSS contracts by its customers through explicit and implicit understandings.

Negotiations concerning the exact terms and conditions of the Contracts were conducted privately and access to these sessions was carefully controlled by both GE and NIPSCO.

While the existence of the Contracts were made public at the time they were signed, the documents themselves were not.

It is a universal practice in the power generation industry, in which GE is one of the largest participants, that negoti-ated contracts such as those specified in paragraph 2 above are held by both parties to the contract to be confidential.

5. The Contracts contain the price and terms and conditions of the sale of this equipment and services by GE.

The Contracts, and the information they contain, have never

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l been made available by GE to public sour:es. Although on October 7,19 80, GE was informed by NIPSCO that the Contracts ,

without GE's knowledge or consent, had been filed with the Securities and Exchange Commission as a part of filings made by NIPSCO, GE has immediately taken steps to notify the SEC of the proprietary nature of the Contracts and has submitted an appropriate affidavit in support of the Contracts being withheld from public disclosure.

6. GE can suffer two types of competitive harm if the Contracts were to be released:

(a) Competitors will know what the terms, condi-tions and prices are of GE's offerings and thus obtain a competitive advantage in the marketplace. Prices and terms and conditions of sale are considered by GE to be proprietary information. Competitors are unable to obtain this informatiott from any other sources. While the Contracts were signed in the early 1970's, mere age in no way lessens their competitive value. Domestic and international competitors and potential customers can easily extrapolate current values and negotiating positions from this data. In addition, competition in the market for NSSS is extremely intense due to the slowdown in orders for nuclear power plants by electric utility companies over the past several years. Disclosure of the NSSS contract

would enable competitors to obtain a better understanding l

of GE's bargaining positions, giving competitors a- potential advantage when bidding against GE for the few projects which exist worldwide.

(b) Customers will be able to ascertain the nature of GE's potential final bargaining positions and strategy and thus have an upper hand in negotiating for this equipment.

7. In order to comply with the 1977 modification (consented to by General Electric Company and issued on September 16, 1977 in the United States District Court for the Eastern District of Pennsyvania) of the 1962 Heavy Electrical Equipment Consent Decree (consented to by General Electric Company and issued October 1,1962 in the United States District Court of Pennsylvania), GE has adopted a policy which prohibits the public dissemination of any information concerning the terms, conditions, or prices of large turbine-generators.

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I have evaluated the Contracts in accordance with the criteria stated in paragraphs 3 and 4 above and have found them to be information which is proprietary and which is customarily held in confidence by General Electric .

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• Eugene W. O'Rorke, being duly sworn, deposes and says that he has read the foregoing affidavit and the matters stated therein are true and correct to the best of his knowledge, information, and belief.

Executed at San Jose, California, this /7 day of b6 , 1980.

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Eugene f O' Rorke General Electric Company STATE OF CALIFORNIA )

COUNTY OF SANTA CLARA ss:

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Subscribed and sworn before sue this /7 day of O"N L'u ,

1980. .

' T An- , ne ^ ::: y OFFICIAL SEAL RUTHE M. KINNAMON

@ f.0TARY PUBUC SANTA CLARA COUNTY My comm. espires MAR 23,1981 175 Curmer Ave., son Jose, CA 95825 i ;*. ,. . r. - : rm . . , _ -.-.m,s.~.., -

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