ML20078E380

Forwards Proprietary Response to Request for Addl Info Re Sbwr Giraffe Tests.Encl Withheld (Ref 10CFR2.790)

ML20078E380
Person / Time
Site:	05200004
Issue date:	11/01/1994
From:	Marriott P GENERAL ELECTRIC CO.
To:	Borchardt R NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM), Office of Nuclear Reactor Regulation
Shared Package
ML19311B465	List: ML20078E380
References
MFN-137-94, NUDOCS 9411100272
Download: ML20078E380 (4)

Text

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,, GENuclear Energy ,

4 P. W. Marrior Manager GeneralEloctnc Company AdvancedPlant Technologes 175 Curtner Avenue, Mo 781 San Jose CA 95125-1014 400925-6948 (phone) 4089251193(tacswnile)

November 1,1994 MFN No.137-94 Docket STN 52-004 Document Control Desk U. S. Nuclear Regulatory Commission Washington DC 20555 -

Attention: Richard W. Borchardt, Director Standardization Project Directorate

Subject:

NRC Requests for Additional Information (RAIs) on the Simplified Water Reactor ( SBWR) Design

References:

Transmittal of Requests for Additional Information (RAIs) for the SBWR Design, Letter from M. Malloy to P. W. Marriott dated July 20,1994 The reference requested additional information on the SBWR GIRAFFE tests. In partial fulfillment of this request, GE is submitting responses to RAls 950.49,950.50, ,

950.52, and 950.53. 't Please note that the information contained in the enclosure is of the type which GE maintains in confidence and withholds from public disclosure. It has been handled and classified as proprietary to GE as indicated in the attached aflidavit. We hereby request that this information be withheld from public disclosure in accordance with  ;

the provisions of 10CFR2.790.  ;

Sincerely, 1,

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P. W. Marriott, Manager

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Enclosure [@

cc: P. A. Bochnert (ACRS) (w/l copy of Attachment 1) 10 F. W. Ilasselberg (w/l copy of Attachment 1) N M. Malloy (w/2 copies of Attachment 1) n a, . . - -

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, GENERAL ELECTRIC COMPANY AFFIDAVIT I, Paxick W. Marriott, being duly sworn, depose and state as follows:

(1) I am the Manager, Advanced Plant Technologies, General Electric Company ("GE")

and have tren delegated the function of reviewing the information described in paragraph 2 which is sought to be withheld, and have been authorized to apply for its withholding.

(2) The information swght to be withheld is contained in the attachec GE proprietary response to NRC Requests for Additional Information 950.49 - 950.53.

(3) In making this application for withholding of proprietary information of which it is an owner, GE relies upon the exemption from disclosure set forth in the Freedom of Information Act ("FOIA"),5 USC Sec. 552(b)(4), and the Trade Secrets Act,18 USC Sec.1905, and NRC regulations 10 CFR 9.17(a)(4),2.790(a)(4), and 2.790(d)(1) for

" trade secrets and commercial or financial infonnation obtained from a person and privileged or confidential" (Exemption 4). The material for which exemption from disclosure is here sought is all " confidential commercial information", and some portions also qualify under the narrower definition of " trade secret", within the meanings assigned to those terms for purposes of FOIA Exemption 4 in, respectively, Critical Mass Enerev Project v. Nuclear Reculatory Commission. 975F2d871 (DC Cir.

1992), and Public Citizen Health Research Groun v. FDA,704F2dl280 (DC Cir.1983),

(4) Some examples of categories of information which fit into the definition of proprietary information are:

a. Information that discloses a p ocess, method, or apparatus, including supporting data and analyses, whem prevention of its use by General Electric's competitors without license from General Electric constitutes a competitive economic advantage over other companies;

b. 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;

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

d. Infonnation which reveals aspects of past, present, or future General Electric customer-funded development plans and programs, of potential commercial value to General Electric;

e. Information which discloses patentable subject matter for which it may be desirable to obtain patent protection.

The information sought to be withheld is considered to be proprietary for the reasons set forth in both paragraphs (4)a. and (4)b., above.

Affidavit Page 1 i

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'(5) The infonnation sought to be withheld is being submitted to NRC in confidence.

The information is of a sort customarily held in confidence by GE, and is in fact so held. Its initial designation as proprietary information, and the subsequent steps taken to prevent its unauthorized disclosure, are as set forth in (6) and (7) following.

The infonnation sought to be withheld has, to the best of my knowledge and belief, consistently been held in confidence by GE, no public disclosure has been made, and it is not available in public sources. All disclosures to third parties including any required transmittals to NRC, have been made, or must be made, pursuant to mgulatory provisions or proprietary agreements which provide for maintenance of the information in confidence.

(6) Initial approval of proprietary treatment of a document is made by the manager of the originating component, the person most likely to be acquainted with the value and sensitivity of the infonnation in relation to industry knowledge. Access to such documents within GE is limited on a "need to know" basis.

(7) The procedure for approval of external release of such a document typically requires review by the staff manager, project manager, principal scientist or other equivalent authority, by the manager of the cognizant marketing function (or his delegate), and by the Legal Operation, for technical content, competitive effect, and determination of the accuracy of the proprietary designation. Disclosures outside GE are limited to regulatory bodies, customers, and potential customers, and their agents, suppliers, and licensees, and others with a legitimate need for the information, and then only in accordance with appropriate regulatory provisions or proprietary agreements.

(8) The infonnation identified in paragraph (2) is classified as proprietary because it contains detailed results of test programs which GE and its associate have conducted and applied to evaluate the loss-of-coolant accident for SBWR.

The development and performance of the test program was achieved at a significant cost, on the order of several million dollars, to GE and its associate.

This infonnation contains GE and associate infomiation which, by nature of the collaboration used to prepare the infomiation, cannot be easily separated into its respective parts. In addition to its direct competitive value to GE, the treatment of the information is bound by contract provisions of an Agreement between GE and the associate which provides for proprietary handling of the information.

(9) Public disclosure of the information sought to be withheld is likely to cause substantial harm to GE's competitive position and foreclose or reduce the availability of pmfit-making opportunities. The information is part of GE's comprehensive BWR safety and technology base, and its commercial value extends beyond the original development cost. The value of the technology base goes beyond the extensive physical database and analytical methodology and includes the value i derived from providing analyses done with NRC-approved methods.

The reseamh, development, engineering, analytical, and NRC review costs comprise a substimtial investment of time and money by GE and its associate.

The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is difficult to quantify, but it clearly is substantial.

GE's competitive advantagc will be ! cst ifits competitors are able to use the results of the GE experience to nonnalize or verify their own process or if they are able to claim an equivalent understanding by demonstrating that they can arrive at the same or similar conclusions.

Affidavit Page 2

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The value of this information to GE would be lost if the information were disclosed to the public. Making such information available to competitors without their having been required to undenake a similar expenditure of resources would unfairly provide competitors with a windfall, and deprive GE of the opportunity to exercise its competitive advantage to seek an adequate return on the large investment in developing these very valuable analytical tools. ,

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STATE OF CALIFORNIA )SS:

COUNTY OF SANTA CLARA )

Patrick W. Marriott, being duly sworn, deposes and says:

That he has read the fon going affidavit and the matters stated therein are true and correct to the best of his knowledge, Executed at San Jose, California, this 3 day of NO VGM 868,19_94 0

PatricWN. &larriott General Electric Company Subscribed and sworn before me this 3 day of m*/dv ,19f_d Notary Pubife, State of California L AA

m. . . .. ...m MARY L KENDALL j . ,eq

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COMM. # 987864 3 2 2j , Notory Public - California 3 3 SANTA CLARA COUNTY j - - .My Comm. Expires MAR 26,1997 g[

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