ML20085K079

Submits Encl to Replace Affidavits for Encls to GE Ltrs Mfn 034-95 & 63-95

ML20085K079
Person / Time
Site:	05200004
Issue date:	06/20/1995
From:	Quinn J GENERAL ELECTRIC CO.
To:	Quay T NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM), Office of Nuclear Reactor Regulation
References
MFN-089-95, MFN-89-95, NUDOCS 9506230130
Download: ML20085K079 (8)

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June 20,1995 MFN 089-95 Docket STN 52-004

- Document Control Desk U. S. Nuclear Regulatory Commission Washington DC 20555 Attention: Theodore E. Quay, Director Standardization Project Directorate

Subject:

SBWR- UPDATED AFFIDAVITS FOR THE ENCLOSURES TO GE i LETFERS MFN 034-95 and 63-95.

Reference:

GE Letter MFN 034-95, J. E. Quinn (GE) to R. W. Borchardt (NRC),

Responses to NRC Requests for AdditionalInformation (RAIs) on theSimpliped ,

Boiling Water Reactor (SBWR) Design, RAls 901.52-901.72 Related to Licensing Topical Reports (NEDE-32176P, NEDE-32177P, and NEDE-32178P), dated February 27,1995.

GE Letter MFN 063-95, J. E. Quinn (GE) to R. W. Borchardt (NRC),

PANTHERS-PCC Apparmt Test Results dated April 25,1995.

The enclosure to this letter is sent to replace the affidavits for the enclosures to the referenced letters. This update of the aflidavits is made clarify the transmitted information.

Sincerely,

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%/ ~ -. 1 amesjkQLimCProjects Manager LMR and SBWR Programs

Enclosure:

AFFIDAVITS cc: P. A. Boehnert (NRC/ACRS) (2 paper copies w/ encl. plus E-Mail w/o encl.) j I. Catton (ACRS) (1 paper copy w/ encl. plus E-Mail w/o encl.) 1 S. Q. Ninh (NRC) (2 paper copies w/ encl. plus E-Mail w/o encl.)

D. C. Scaletti (NRC) (1 paper copy w/ encl. plus E-Mail w/o encl)

. J. H. Wilson (NRC) (1 paper copy w/ encl. plus E-Mail w/o encl.)

9506230130 950620 PDR ADOCK 05200004 0 A PDR

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o.: j General Electric Company I AFFIDAVIT l

l-l I, D. J. Robare, being duly sworn, depose and state as follows: l i

i (1) I am Project Manager, General Electric Company ("GE") and have been delegated the l function of reviewing the information described in paragraph (2) which is sought to be l withheld, and have been authorized to apply for its withholding.

(2) The information sought to be withheld is contained in the PANTHERS-PCC Apparent Test J Results (ATR) report from the SBWR test program. The ATR report documents the  !

preliminary results from the matrix of SBWR tests at the PANTHERS Test Facility.

(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 ofInformation 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 information 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 Energy Project v. Nuclear Regulatory Commission. 975F2d871 (DC Cir.1992), and Public Citizen Health Research Group v. FDA, l 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 process, method, or apparatus, including 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 quality, or licensing of a similar product;

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

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

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

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

(5) The information sought to be withheld is being submitted to NRC in confidence. The information is of a sort customarily held in confidence by GE and its associates, and is in fact so held. The information 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 regulatory provisions or proprietary agreements which provide for maintenance of the information 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 information 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 4

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 information identified in paragraph (2) is classified as proprietary because it contains results from the SBWR test program. This test program has been under development by GE and it associates for more than seven years at a total cost of ten of millions of dollars. This information is considered to be proprietary for the reasons set forth in paragraphs (4)a, (4)b and (4)d, above.

(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 profit-making opportunities. The information is part of GE's comprehensive BWR technology base, and its commercial value extends beyond the original development cost. The value of the technology base goes beyond the extensive physical database.

The research, development, engineering, and NRC review costs comprise a substantial investment of time and money by GE and its associates.

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 if its competitors are able to use the test results of the GE and its associates experience to normalize 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.

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The value of this information to GE and its associates 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 the large investment in developing these very valuable analytical tools.

STATE OF CALIFORNIA )ss:

COUNTY OF SANTA CLARA )

D. J. Robare, 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, r Executed at San Jose, California, this :Lo day of lytjl ,19f D. J. Robare General Electric Company Subscribed and sworn before me this 9b day of (L A ,193A'

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-f General Electric Company AFFIDAVIT I, DavidJ. Robare, being duly sworn, depose and state as follows:

(1) I am Manager, Project Manager, 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 specific infonnation (Figures 60.1, 64.1, 64.2, 64.3, 66.1 and the figures in RAI 901.63) sought to be withheld is contained in the attachment entitled:

Submittal of Additional Information on Licensing Topical Reports (NEDE-32176P, NEDE-32177P and NEDE-32178P), MFN-034-95, dated Febniary 27, 1995.

(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),

1:.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 tenns for puraoses of FOIA Exemption 4 in, respectively, Critical Mass Enerev Proiect v. Nuclear Reculatory Commission. 975F2d871 (DC Cir. 1992), and I'ublic Citi7en Health Ilesearch Groun v. FDA. ~

704F2dl280 (DC Cir.1983).

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

a. Infonnation that discloses a process, method, or apparatus, including 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. Infonnation 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. Information which reveals cost or price information, production capacities, budget levels, or commercial strategies of General Electric, its customers, or its suppliers;

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0L L d. -Information 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. l

<l The information sought to be withheld is considered to be proprietag for the  :

reasons set forth in both paragraphs 4.b and 4.d, above.  ;

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(5) The information sought to -be withheld is being submitted to NRC m-confidence. The information is of a sort customarily held in confidence by i GE, and is in fact so held. The information 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. i All disclosures to third parties including any required transmittals to NRC, 1 have been made, or must be made, pursuant to regulatory provisions or t proprietary agreements'which provide for maintenance of the information in . >

n confidence. Its initial designation as- proprietary information, and the subsequent steps taken to arevent its unauthorized okdosure, are as set forth -

in paragraphs (6) and (7) Pollowing.  :

(6) Initial approval of proprietay treatment of a document is made by .the manager of the ongmating component, the person most likely to be t acc uamted with the value and sensitivity of the mformation in relation to ind ustry knowledge. Access to such documents within GE is limited on a "need to know" basis.

L (7) The procedure for approval of external release of such a document typ,ically.

requires review by the staff manager, project manager, principal scientist or by the manager of the cognizant marketing other ftmctionequivalent authority, (or his delegate), an d by the Legal Operation, for technical content, competitive effect, and deteimmation of the accuracy of the proprietag ,

designation. Disclosures outside GE are limited . to regulatory bodies, l

customers, and potential customers, and their agents, suppliers, and licensees, l and others with a legitimate need for the'information, and then only in -

accordance with appropriate regulatoy provisions or proprietary agreements. ,

t (8) The information identified in paragraph (2), above, is classified as proprietary because it would provide 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.  !

(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 profit-making opportunities. The information is part of GE's  ;

comprehensive BWR' technology base, and its commercial value extends l beyond the original development cost. The value of the technology base goes  :

beyond the extensive physical database and analytical methodology and

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1 includes development. of the expertise - to determine and apply . the i appropriate evaluation process.. 1 The research, development, engineering, and analytical costs comprise a substantial investment of time and money by GE.

The precise value of the expertise to devise an evaluation process and appiy ,

the correct analytical methodology is difficult to quantify, but it clear:y is .

substantial. .

GE's competitive advantage will be lost if its com etitors are able to use the- -

i results of the GE experience to normalize or veri their own process or if they  !

are able to claim an equivalent understanding by emonstratmg that they can i 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 rec urred to undertake a similar expenditure'of  !

resources would unfairly provic e 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 designs.

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STATE OF CALIFORNIA )33:

COUNTY OF SANTA CLARA )

DavidJ. Robare, 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, Executed at SanJose, California, this Ti day of UONG .19 2S i we3 DavidJ. Robare General Electric Company Subscribed and sworn before me this O dayof dW ,19[

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