ML20078L343

Transmits Info Presented at 950109 Meeting Between NRC & GE Re NRC SER on Test & Analysis Program for Sbwr.Info Presented at 950109 Meeting Withheld (Ref 10CFR2.790)

ML20078L343
Person / Time
Site:	05200004
Issue date:	02/06/1995
From:	Quinn J GENERAL ELECTRIC CO.
To:	Borchardt R Office of Nuclear Reactor Regulation
Shared Package
ML19311B743	List: ML20078L343
References
MFN-014-95, NUDOCS 9502100309
Download: ML20078L343 (4)

Text

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G2NucientEnergy

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J E. Quonn, Manager General Electnc Company ALMR and SBnR Pmtects 175 Curtner Avenue, MC 165 San Jose, CA 95125-1014 406 9251005 (phone) 408 925-1193 (facsimile)

Februay 6,1995 MFN No. 014-95 Docket STN 52-004 Document Control Desk U. S. Nuclear Re ulatory Commission Washington DC h0555 r Attention: Richard W. Borchardt, Director Standardization Project Directorate

Subject:

Transmittal of Infomiation Presented at theJanuary P,1995 Meeting between the Nuclear Regulatory Commission Staff and GE ,

This letter is provided to document the affidavit and proprietag slides that were presented at theJanuary 9,1995, meeting between the Nuclear Regulaton Ccrimission Staff and GE to discuss the Staffs SER on the Test and Analysis Program for the SBWR.

Please note that the information presented in this meeting is of the type which GE maintains in confidence and withholds from public disclosure. It has been handled and classified as proprietag to GE as indicated in the affidavit presented with these materials.

We herchy request that this information be withheld from public disclosure in accordance with the provisions of 10CFR2.790.

Sincerely, j / e' J . F _ uinn, Manage C$ WR Projects i

Enclosure ff cc: P. A. Boehnert (ACRS)

F. W.11asselberg (NRC) 4 L J. H. Wilson (NRC) 1 $ 9.'3 0 u - ^

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..- l General Electric Company )

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AFFIDAVIT  :

I, Patrick W. Marriott, being duly sworn, depose and state as follows:

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

("GE") and have been 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 sought to be withheld is contained in the GE proprietary presentation material used during the January 9,1995, meeting between Nuclear Regulatory Commission Staff and GE to discuss the Staff's SER on .

the Test and Analysis Program for the SBWR.  !

(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 i 9.17(a)(4),2.790(a)(4), and 2.790(d)(1) for " trade secrets and commercial or financial information obtained from a person and privileged or confidential"-(Exemption 4). The material for which exemption from l 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 Proiect v. Nuclear  !

Regulatorv Commission. 975F2d871 (DC Cir.1992), and Public Citizen ,

Health Research Groun v. FDA,704F2dl280 (DC Cir.1983).

(4) Some examples of categories ofinformation which fit into the definition of ,

proprietary information are: ,

a. Information that discloses a process, method, or apparatus, including I supporting data and analyses, where 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 qtulity, or i licensing of a similar product; j

c. Information which reveals cost or price information, production  :

capacities, budget levels, or commercial strategies of General Electric, its customers, or its suppliers; l

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

c. Infbrmation 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 fbr the reasons set Ibrth in both paragraphs 4.b and 4.d, above.

(5) The information sought to be withheld is being submitted to NRC in confidence. The infbrmation is of a sort customarily held in confidence by GE, and is in fact so held. The information sought to be withheld has, to the best of my knowledge and be'icf, consistently been held in confidence by GE, no public disclosme 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 regulatory provisions or proprietary agreements which provide for maintenance of the mformation in confidence. Its initial designation as proprietary information, and the subsequent steps taken to prevent its unauthorized disclosure, are as set forth in paragraphs (6) and (7) following.

(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 infbrmation in relation to industry knowledge. Access to such documents within GE is limited on a "need to know" basis.

(7) The procedure fbr approval of external r: lease 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 infbrmation identified in ' graph (2), above, is classified as proprietary because it would prouac other parties, including competitors, with information related to General Electric fuel designs, analysis results and potential commercial offerings which were developed at a considerable expense to General Electric.

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(9) Public disclosure of time information sought to be withheld is likely to cause substantial harm to GE's competitive position and foreclose or reduce the i

. availability of profit-making opportunities. The information is part of GE's comprehensive IlWR technology base, and its commercial value extends beyond the original development cost. The value of the technology base goes beyond the extensive physicai database and analytical methodology '

and includes development of the expertise to determine and apply the appropriate evaluation process. ,

The research, development, engineering, and analytical costs comprise a  !

substantial investment of time and mency by GE.

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 advantage will be lost ifits competitors are able to use the i results of the GE experience to normalize or verify their own process or if i they are able to claim an equivalent understanding by demonstrating that they can arrive at the same or similar conclusions.

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 undertake 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 its large investment in developing these very valuable '

analytical tools.

STATE OF CALIFORNIA )SS:

COUNTY OF SANTA CLARA )

Patrick W. Marriott, oeing duly sworn, deposes and says: f i

That he hn read the foregoing affidavit and the matters stated therein are true and i correct to the best of his knowledge, i Executed at San Jose, California, this F day of J A"#44 ,19_M '

I Patrick W.Aiarriott General Electric Company Subscribed and sworn before me this day of _v ""/.19_f6 i

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f Notary Publid, State of California f g;.g

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4 m ayL.nNDAu COMM. # 967864 I '

2 y g. Notary Public - Californio J> '

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