ML20039E138

Forwards RA Wiesemann Affidavit Per ASLB 811221 Order, Proposed Protective Agreement,Motion for Reconsideration, Motion Authorizing Discovery & Notice of Appearance.Related Correspondence

ML20039E138
Person / Time
Site:	Point Beach
Issue date:	12/31/1981
From:	Cowan B ECKERT, SEAMANS, CHERIN & MELLOTT
To:	Bloch P, Kline J, Paxton H Atomic Safety and Licensing Board Panel
Shared Package
ML20039E139	List: ML20039E138 ML20039E161 ML20039E173 ML20039E182 ML20039E184
References
ISSUANCES-OLA, NUDOCS 8201060573
Download: ML20039E138 (2)

Text

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. J ausmo coiuuwosue ECKERT, SEAMANO, CH ERIN & M ELLOTT ATTORNEYS AT LAW FORTY-SECOND FLOOR 600 GRANT STREET rRANs L. SEAMANS DALE MERSMET PITTSBURGH, PA.15219 MiCMAEL R. soRASaf carob r.oMatsNER RoaERT w. Dofv m oTMv w.S LeAuoM rRED w.oCoRoE CARL CMERiN CLovD e. MEuoTT J. oART aoSinSni (4:2) 566-6000 cENNiS J. Lewis otoRoE E.TonifiS

w. o:EDo nERR JoMN R. nENReCn TELEX- 866172 wiw AM M. SCMoRLs No rREDERiCa e.mRuoER RoDEkiCa o. MORRIS RosERT a. wlWAMS JAMES M. RoetRTS CurroRD A. RASTEL JoMN M. MORGAN w'LLIS 4. SIEGrRIEDe JR. TELECOPIER-(412) 566-6099 n.DovLE oEoRGE EMEN MERCER SCH4NDLER CJ.mL r. BAROER D Avid E.TUNOATE JOHN T. SCMMIOT - CARLA M. OREENrtELD RICHARD w. 0LADSToNE,II RICHARD L MALPERN wlLU AM E. N EMEMER,JR.

EDWARD J. OREEME

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C. KENT MAY D. RICMAND FUNn

" DENNi$ J.no'.SRIEN JoNATMAN NEROCRT RfCMAND r. RINALDO EDWARD 0,o'CoNNom **owARD D. SCMwARTZ WILLIAM WATSON SMITH M ARGARt? R. Joy RICHARD n. cANDREA ALFRED m vaDNA35 RosERT L. ALLM AN. II . GEORGE M. MEDVED JoMN J. roRD wM. ALv .M STEWART, IlI STEVEN w. M*GRATM 1071*1904 JoRD AN S. wELTM AN r#EDERICn J. CSSRAR BRv&N D.RoSENBERGER STUART A.wrLLIAMS RA A. M En DiLE E. WILLIAMS December 31, 1981 Peter B. Bloch, Chairman Administrative Judge DOLKETED Atomic Safety and Licensing Board Panel U%RC U.S. Nuclear Regulatory Commission Washington, D.C. 20555 .g7. JM -4 All :25 Dr. Jerry R. Kline Administrative Judge cmcr cr SECREu Atomic Safety and Licensing Board Pane "CKEIJNG & SERE dM U.S. Nuclear Regulatory Commission 4 Washington, D.C. 20555 RECEIVED i\

Dr. Hugh C. Paxton m JAN 5 1982>

Administrative Judge 1229 - 41st Street 4 8 mm m ammes '

sener mamme a Los Alamos, New Mexico 87544 roc

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Re: Wisconsin Electric Power Compan 9 ch' Nuclear l Plant, Units 1 and.2) Docket Nos. -OLA, 50-301-OLA: Memorandum and Order (Concerning Preliminary l Confidentiality Issues)

Gentlemen:

On behalf of Westinghouse Electric Corporation, we are filing herewith the following documents.

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1) The affidavit as ordered to be filed by the l

l Board in its Memorandum and Order (Concerning

! Preliminary Confidentiality Issues) dated December 21, 1981, (the " December 21 Memorandum and Order"), page 26, 11. Although Westinghouse disagrees with the ruling of the Board and the khh&K0500073 811231' O ,

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. h December 31, 1981 Page Two jurisdiction.of the Board with respect to this issue, the enclosed affidavit is filed in ac-cordance with the direction of the Board.

2) The proposed protective agreement ordered by the Board in its December 21 Memorandum and Order, page 26, 12). Since the agreement contains terms more stringent than those proposed by the Board in its existing Order, a brief is also enclosed containing reasons supporting each of the terms.

Westinghouse requests the opportunity for oral argument with respect to the more stringent terms in the event they are not adopted.by the Board.

By submitting the proposed protective agreement, Westinghouse does not consent to the release to Decade of any Westinghouse proprietary informa-tion with respect to the underlying affidavits of confidentiality. If the Board hereafter orders the disclosure of such proprietary underlying af-fidavits, Westinghouse requests an immediate stay of such order to af?ord Westinghouse an opportunity to appeal such order.

3) A Motion for Reconsideration of the December 21 Memorandum and Order.

4) A Motion authorizing discovery by Westinghouse against Decade on the subject of prior unau-thorized disclosure by Decade of proprietary information, together with a request for hearing, if necessary. The motion is accompanied by the request for admissions proposed to be submitted to Decade.

l 5) Notices of Appearance of Barton Z. Cowan, Esq.,

l John R. Kenrick, Esq., and Eckert, Seamans, l Cherin & Mellott as additional counsel on be-

! half of Westinghouse Electric Corporation.

i Very truly yours, I

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Enclosures cc: Service List l

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UNITED STATES OF AMERICA 00LMETED NUCLEAR REGULATORY COMMISSION UM Before the Atomic Safety and Licensino Boar $2 JAN-4 A11:25 In the Matter of ) CFF:CE CF H^0E'

) ti0thEIggyb :

WISCONSIN ELECTRIC POWER COMPANY ) Docket Nos.60-266

) 50-301 (Point Beach Nuclear Plant, ) (0L Amendment) -

Units 1 and .2) )

AFFIDAVIT OF R. A. WIESEMANN County of Allegheny )

) ss State of Pennsylvania )

R. A. WIESEMANN, being duly sworn according to law, deposes and says:

1. I am Manager of- Regulatory and Legislative Affairs in the Nuclear Technology Division of the Westinghouse Electric Corporation (Westinghouse). I. have been delegated specifically the function of j . reviewing the proprietary infonnation sought to be withheld from public disclosure in connection with nuclear power plant licensing or rulemaking proceedings, and am authorized to apply for its with-l holding on behalf of the Westinghouse Water Reactor Divisions.

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2. The supplement to this affidavit contains Westinghouse proprietary ,

infonnation, relating to why information already furnished is proprietary, and is hereby so claimed, pursuant to 10 CFR2.790(b)(1)(ii)(1981). I have indicated the same on each sheet thereof. It is being furnished only to the three members of the Atomic Safety and Licensing Board assigned to this proceeding and to the staff counsel.

3. The information in this document and supplement is true and correct to the best of my information, knowledge and belief.

4. Further Affiant sayeth not.

M R. A. WIESEMANN Subscribed and sworn to before me this 13th day of November, 1981 O, ', . . P%'9 /

NUTARY FUBLIC My Commission expires: -

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SUPPLEMENT TO AFFIDAVIT OF R. A. WIESEMANN THE NATURE OF THE COMPETITION

1. Pressurized Water Reactors utilize a closed-cycle reactor coolant system in which the steam generator tubes separate the reactor coolant system from the open-cycle system which provides steam to drive the turbine-generator and produce electricity.

2. Steam generator tubes are subject to inspection and maintenance to ensure safe operation. Steam generator tubes which exceed conserva-tive tube-plugging criteria set by the NRC are taken out of service '

by plugging the ends of the tubes and thereby~ isolating them from the reactor coolant.

3. There is no safety problem, however, if a sufficient number of tubes are plugged, the operating flexibility and power output of the plant may be limited.

4. In this situation, the alternatives to operating with these attendant limitations are either to replace or to repair the steam generators.

5. All pressurized water reactors are subject to long-term effects of corrosion and thus have the potential for requiring repair or replacement of steam generators at some time during plant life.

6. There are currently 390 steam generators in plants operating or under construction in the United States. There are another 433 steam generators in plants in the rest of the world excluding the USSR.

7. The advantages of steam gencrator repair over replacement is shorter plant down time and lower cost.

SUPPLEMENT TO AFFIDAVIT 0F R. A. WlESEMANN (Continued)

Paragraphs 8 through 11 identify potential domestic and international competitors of Westinghouse and some repair work Westinghouse believes has been performed by them. This demonstrates their potential viability in the marketplace.

12. The Investment by Westinghouse in developing the technology of steam generator tube repair can only be recovered if Westinghouse is able to retain the advantages of this technology over its competitors for steam generator tube repair business or if it is able to license others to use the technology. This can only be done if the information is not publicly available.

SUPPLEMENT TO AFFIDAVTT OF R. A. WIESEMANN (Continued)

E.:FECT OF RELEASE OF IN.:0RttATION ON WESTINGHOUSE COMPETITIVE POSIT Paragraphs 1, 2 and 3 describe the Westinghouse judgment of the altered nature of the mar's et should the proprietary information at issue be released.

2.

The general public would also suffer in that they would be depr.ived of the benefits of technological developments that would most likely far exceed any short-term benefits derived from lower prices.

WHAT WESTINGHOUSE SEEKS TO PROTECT

1. Westinghouse seeks to protect its ability to recover its investments in:

A. Test methods and basic data resulting from research and development.

' SUPPLEMENT TO AFFIDAVXT 0F R. A. WIESEMANN (Continued)

B. Analytical methods and models.

-C. Processes.

D. Details of our designs including margins, tolerances, etc.

E. The knowledge of what data to present and how to present the data to satisfy NRC licensing requirements. NOTE: In the current licensing environment, the capability to obtain licensing approval has become very important in the marketplace.

2. The above identified information is of considerable commercial advantage to the competitors of Westinghouse to the extent that it eliminates the need for similar investments in technology.

RELATIONSHIP 0F INFORMATION SOUGHT TO BE WITHHELD FROM PUBLIC OISCLOSURE TO WHAT IS SOUGHT TO BE PROTECTED The release of this information would result in the following competitor benefits:

1 i POTENTIAL ADVANTAGES TO COMPETITORS

1. It would reduce or eliminate the amount of analysis, research and development work competitors would have to do by providing specific data which, by normalization to other information, whether it be their own or that which is made publicly _ available, would enable competitors to derive the results of research and development work with a smaller investnent of their own resources. .

2. It would allow competitors to justify their own methods and processes using comparative analysis arguments and with a much smaller investment of resources.

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SUPPLEMENT TO AFFIDAVIT OF R. A. WIESEMANN (Continued)

3. It would enable competitors to define and justify the scope and contents of their development program based on a comparison with an accepted program and. reduce their costs.

4. It would provide competitors the opportunity to develop a similar design and supporting analyses on.a time schedule which,would allow them to counter Westinghouse in the marketplace.

5. It would reveal advanced processes, methods and analysis and enable competitors to duplicate them with ~ minimal development or license costs.

INVESTMENT BY WESTINGHOUSE IN WHAT IS SOUGHT TO BE PROTECTED

1. A considerable amount of highly qualified development effort has I

been expended in exploring alternatives and in ' developing, demonstrating,

! and verifying processes, methods and analyses associated with

restoring steam generator performance. The investment to date in Westinghouse, exclusive of facilities, is - '

2. Competitors could obtain the equivalent information, with difficulty, I

by performing the same development work as was done by Westinghouse, investing similar sums of money, and provided they had the appropriate talent available and the requisite development experience.

I POTENTIAL HARM TO WESTINGHOUSE

1. We believe there is a likelihood of substantial harm to the competitive t

position of Westinghouse in providing steam generator repair services if the information sought to be withheld is publicly disclosed.

Such disclosure could result in a loss of future revenue to Westinghouse.

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SUPPLEMENT TO AFFIDAVIT OF R. A. WIESEMANN (Continued)

2. Westinghouse is associated with, or licenses technology to, manu-facturing and service organizations in'other countries. If this technology becomes public, our ability to obtain advantageous licensing terms could be seriously affected.

3. Our competitors are similarly engaged so every improvement they become aware of would unfairly assist them in their existing commercial arrangements. . On the other hand, they could also attempt to undersell us with our present or potential customers and licensees.

4. Thus, the revelation of information about Westinghouse technology puts us at a commercial disadvantage.

Further affiant sayeta not. .

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00LKETED USHRC UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION '82 JAN -4 A!1 :25 Before the Atomic Safety and Licensing Board w__, _ ,_

CF%_.c e t ut ; . .

D0CXETmG & SEst i:RhNCH In the Matter of )

)

WISCONSIN ELECTRIC POWER COMPANY ) Docket Nos. 50-266-OLA

) 50-301-OLA (Point Beach Nuclear Plant, )

Units 1 and 2) )

PROTECTIVE AGREEMENT In consideration of the disclosure by Westinghouse Electric Corporation ("Wes tinghouse" ) to Wisconsin's Environmental Decade, Inc. (" Decade") of Westinghouse proprietary information

- contained ir. the " Supplement to Affidavit of Robert A. Wiesemann" dated November 13, 19 81, Decade accepts and receives such proprietary information in confidencs and trust subject to the following terms and conditions:

1. Decade shall not scrutinize or use the Westinghouse proprietary information for any purpose except in this Atomic Safety and Licensing Board proceeding involving repair of steam generator tubes at the Point Beach Nuclear Power Plant, Units'1 and 2. Such examination will be conducted on a non-public confidential basis. Except with the prior written consent of Wes tinghouse, any proprietary information disclosed pursuant to this Protective Agreement shall only be disclosed to the following persons:

. . 3.-

i 4- -(a): not more than two : legal counsel for Decade whose appearances have been entered of record in .this -

proceeding ' (the names of such counsel to be provided! -l l~.

to Westinghouse at~or prior to the-time of

,I disclosurel; l (b) one representative of Decade, provided that~such representative shall~ have_ first execuced an

acknowledgment to be personally bound by the terms of this Protective ~ Agreement and a certification i

that said person has never made an -unauthorized

, disclosure of Westinghouse proprietary information-1-

)_ (said acknowledgment and certification to be in the form set forth at the end hereof) .

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If Decade determines that it needs to - disclose the Westinghouse proprietary -information to any other person it shall give Westinghouse seven (7) business days advance written notice and at the time of said notice shall provide Westinghouse with an i

acknowledgment and certification (in the form set forth at the j end hereof) executed by such person. If Westinghouse notifies Decade that it objects to disclosure of the proprietary information L .

to such person, Decade-will not make the disclosure but may bring F the matter to the Board for resolution.

{- 2. In the event that a participant in this proceeding

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is directed by the NRC or a court to reproduce or disclose any e .

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information ;in any manner other than as set forth herein, said

participant shall first advise Westinghouse in writing of such~

Ldirection, and shall provide full details with respect . thereto.

3. _ All Westinghouse proprietary information shall be. safeguarded by each person and entity subject- to this Protective Agreement and held as secret and confidential.

4. Any person to whom disclosure is authorized under this Protective Agreement shall not represent'or seek to represent a competitor of Westinghouse.

5. Decade shall not make any copy or in any way I

reproduce or excerpt the Westinghouse proprietary information to be held in confidence hereunder, except for the purpose 4

sat forth in paragraph 1 above (provided that all such excerpts -

and copies include Westinghouse's proprietary markings) without .

the prior written consent of Westinghouse. In the-event excerpts or copies are made for the purposes set forth in paragraph 1 above, Decade will prepare ~and maintain an index providing a detailed ,

description of each such excerpt or copy and its specific location.

If Decade wishes to file a document in this proceeding which l contains any Westinghouse proprietary information subject to this

Agreement, it shall designate such document as confidential by

, typing or stamping the phrase " Confidential Pursuant to ASLB Order" f on each page thereof.

, 6. Decade may not assign this Protective Agreement.

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7. - Westinghouse retains all right, title and interest in and to the proprietary information transmitted under this Protective Agreement. Decade shall return such proprietary information to Westinghouse whenever requested to do so by Wesfinghouse in writing. If it has not been requested to do so earlier, Decade will return the Westinghouse proprietary informa-tion and any excerpts or copies containing same to Westinghouse within ten (10) days af ter the completion of this proceeding, or the conclusion of any NRC or judicial review of this proceeding.

Whenever Decade returns the Westinghouse proprietary information it shall certify to Westinghouse that it has reviewed the index required to be maintained under Paragraph 5 hereof and' has either destroyed all documents listed thereon or returned them to Westinghouse.

8. It is understood that nothing herein shall be construed as granting or implying a patent right of any kind or as permitting Decade to unfairly obtain the right to use informa-tion which becomes publicly known through an improper act or omission on its part.

9. This Protective Agreement shall enure to the full benefit of Westinghouse and shall be enforceable by it.

10. All notices required to be given under this Protective Agreement to Westinghouse shall be in writing and shall be deemed sufficiently given when deposited in the United States mail, registered or certified, postage prepaid, and addressed

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to Westinghouse at the address set forth below or at such other address as Westinghouse shall disclose in writing:

Westinghouse Nuclear Energy Systems P. O. Box 355 Pittsburgh, PA 15230 ATTENTION: Mr. Robert A. Wiesemann AS WITNESS HEREOF, Decade has hereto set its signature to this Protective Agreement.

WISCONSIN'S ENVIRONMENTAL DECADE, INC.

By Title Dated: January , 1982 t

. .. t ACKNOWLEDGMENT AND CERTIFICATION I acknowledge that I have read the foregoing Protective Agreement (concerning disclosure by Westinghouse Electric Corporation proprietary information contained in the " Supplement to Affidavit of Robert A. Wiesemann" dated November 13, 1981) executed by Wisconsin's Environmental Decade, Inc. on January ,

1982, and I agree - to be personally bound by all of the terms and conditions of said Agreement and further, I_hereby certify that I have never been a party to the unauthorized disclosure or release of Westinghouse proprietary information.

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