ML20154P842

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Submits NRR Ofc Ltr 602,revising Procedures for Handling Requests for Withholding Proprietary Info,Per 10CFR2.790
ML20154P842
Person / Time
Issue date: 05/24/1988
From: Murley T
Office of Nuclear Reactor Regulation
To:
Office of Nuclear Reactor Regulation
References
NRRL-602, NUDOCS 8806060095
Download: ML20154P842 (18)


Text

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,4 g UNITED STATES y 7, NUCLEAR REGULATORY COMMISSION

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%,,,g+ MAY 2 4 WBB MEMORANDUM FOR: All NRR Employees FROM: Thomas E. Murley, Director Office of Nuclear Reactor Regulation

SUBJECT:

NRR OFFICE LETTER NO. 602 - PROCEDURE FOR HANDLING REQUESTS TO WITHHOLD PROPRIETARY INFORMATION PURPOSE This office letter contains procedures for handling requests from applicants /

licensees, vendors or other entities for NRC to withhold proprietary information (which includes trade secrets and connercial or financial information) from public disclosure pursuant to 10 CFR 2.790. This office letter supersedes NRR Office Letter No. 42, dated March 2, 1983, as revised.

Note that the procedures contained in this office letter do not apply to safeguards information or proprietary information submitted by a foreign source, which is automatically approved as material to be withheld from public disclosure pursuant to the provisions of 10 CFR 2.790(d)(i).

RESPONSIBILITIES AND AUTHORITIES All NRR Staff Members All staff members who receive proprietary information are to ensure that these procedures are followed and that a proprietary determination (approval or disapproval) is issued by the NRC. Moreover, all employees should ensure that there is a "need to know" before releasing proprietary information to other staff members.

Project Manager The Project Manager (PM) is authorized to sign all letters (e.g., approval, request for information, or disapproval) pertaining to proprietary determinations involving nuclear power plants. The PM is to ensure that the NRC issues a proprietary determination (approval or disapproval) to the owner of the proprietary data.

CONTACT:

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e All HRR Employees MAY 2 41938 Project Director The Project Director is to ascertain that a proprietary determination (approval or disapproval) is issued for all requests for withholding.

Branch Chief The Branch Chief is authorized to sign letters to vendors approving or dis-approving requests for withholding of proprietary topical reports or other technical reports that are not plant specific and are submitted directly to the responsible division. The Branch Chief is to ensure that NRR issues a proprietary determination (approval or disapproval) to the owner of the proprietary data.

BASIC REQUIREMENTS

1. General The PM or Branch Chief to which the material is sent or assigned for review must prepare the letter containing the proprietary determination. This letter must be concurred in by the Office of General Counsel (0GC).

Normally, there are several pending requests for withholding for which determinations are overdue. Each PM reviewer, Section Chief Leader, or Branch Chief who is aware of such withholding requests should take the necessary steps to prepare response determinations (approval or disapproval) as soon as possible. A copy of proprietary determination letters should be sent to the licensee, if appropriate, persons on the service list, Central Files and placed in the NRC Public Document Room.

2. Application for Withholding Proprietary Information From Public Disclosure 10 CFR Part 2 2.790 contains detailed requirements that the owner l of the proprietary information and the NRC must follow. Generally, a person who proposes that a document or a part of a document be withheld from public disclosure on the ground that it contains trade secrets, privileged, or  !

confidential commercial or financial information shall submit an application for withholding, accompanied by an affidavit that:

(a) identifies the document or part sought to be withheld and the position of the person making the affidavit; and (b) contains a full statenent of the reasons and bases on which the withholding is claimed. This statement should address the provisions statedin10CFR2.790(b)(4).

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All NRR Employees D24W The affidavit must be executed by an officer or upper-level management official who has been specifically delegated the function of reviewing the information sought to be withheld and authorized to apply for its withholding on behalf of the company. The affidavit shall be executed by the owner of the information, even though the information sought to be withheld could be submitted to the Comission by another person (e.g., an applicant or licensee). The application and affidavit shall be submitted at the time the proprietary information sought to be withheld is submitted.

Also, when practicable, a nonproprietary version of the report or document should be submitted.

Note that it is acceptable for the licensee or submitting organization to request withholding of a document in the transmittal letter. However, this request must be accompanied by an affidavit, as described in the above paragraphs.

3. Criteria for Issuance of NRC Determination Under Section 2.790 of 10 CFR Part 2 The provisions of 10 CFR 2.790 require that the Comission determine whether information sought to be withheld from public disclosure is a trade secret, confidential, or privileged comercial or financial information and, if so, whether it should be withheld or not. The provisions of 10 CFR 2.790(b)(4) must be considered in making this determination.

If the staff determines that the information contains a trade secret, confidential, or privileged or confidential comercial or financial information based on the above considerations the following, pursuant to 10 CFR 2.790(b)(5),: it must then consider (a) whether the right of the public to be fully apprised of the proposed action outweighs the demonstrated concern for protection of a competitive position (b) whether on this basis, the information should be withheld if the information is deemed to be irrelevant or unnecessary to the performance of the Comission's functions, it should be returned. If the request to withhold the information is approved, the Comission may require it to be subject to further inspection by one of the following:

(a) under a protective agreement, by contractor personnel or non-NRC government officials (b) by a' presiding officer in a proceeding

All NRR Employees MAY 2 41988 (c) under protective order, by parties to a proceeding. (Note: this may occur also while a decision on withholding is pending).

If the request for withholding information is denied, the applicant, licensee, or vendor will be so notified in writing and given the reason.

Pursuantto10CFR2.790(c),thedocumentwillbeplacedinthePublic Document Room in not less than 30 days unless the applicant, licensee, or vendor requests its withdrawal. If withdrawal is not requested, the person responsible for the proprietary determination will initiate a memorandum to orts Management Branch, Office of Administration the Chief, Records and Resources and Rep (ARM), authorizing release of the document to Management the Public Doc,ument Room.

If withdrawal is requested, the person processing the withholding request will immediately ask OGC to determine whether, in that specific case, the document can be withheld from the Public Document Room and returned. There are certain circumstances wherein a request for withdrawal cannot be honored.

For example, if a Freedom of Information Act request for the document is pending , the document cannot be withdrawn and might have to be made available for public ins Also, Section 10(b) of the Federal Advisory Comittee Act (pection.FACA)providesthat"therecords, reports,...or other documents which were made available to...each advisory committee shall be available for public inspection and copying...." This means that if a document has been submitted to the staff under 10 CFR 2.790, and the staff has made distribution to Advisory Comittee on Reactor Safeguards (ACRS), and the document is under review by the ACRS, the ACRS copies might not be returnable and might have to be made available for public inspection under the provisions of the FACA. If, however, the document is merely stored in the ACRS mail room and is not yet under ACRS review, it might not be subject to the provision of FACA, Section 10(b). A decision must be made in each case and the applicant advised appropriately.

By definition, correspondence and reports to or from the NRC that identify procedures for the physical protection of a licensed facility or plant against sabotage, or information submitted in confidence by a foreign source, are deemed to automatically meet the requirements for withholding from public disclosure. Therefore, a letter from the NRC approving the withholding of these documents is not required.

4. Determinations for Requests to Withhold Proprietary Information In most cases, reviews for withholding proprietary data will be made or coordinated by the PM. Proprietary request determinations pertaining to j topical reports or various technical subjects should be prepared by the  !

responsible review branch. Where the information is specific to a l

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All NRR Employees l licensing case, special project review, or generic review, the PM should 1 do as much of the evaluation as possible. If assistance by reviewers is i required, the PM should arrange for the assistance and coordinate the i activity to ensure continuity and a timely determination. All proprietary )

reviews should be concurred in by the appropriate technical review branch j and by OGC.  ;

For certain documents, such as vendor information supplied in response to j requests by technical reviewers, information provided at meetings on generic 1 or topical reports, and owners group submittals, the technical review personnel will be responsible for the evaluation and issuance of an NRC determination.

The responsible person will do the following as soon as possible after receipt of the request:

(a) Determine that there is an application or request for withholding.

Review the affidavit to ensure that it is complete and acceptable with respect to the requirements of 10 CFR 2.790(b)(1) and that the NRC has been provided information that will allow the agency to make the findingsstatedinSection10CFR2.790(b)(4).

(b) Determine on the basis of the review stated in Item (a) above, whether the information sought to be withheld contains trade secrets, privileged, or confidential commercial or financial information.

(c) Balance the public's right to be fully apprised as to the basis for and effects of the proposed action against the legitimate concerns for protection of the owner's competitive position.

(d) Make a determination on the basis of (c) above, whether the application should be approved or rejected. 1 (e) If the application is rejected and the applicant requests that the documents be withdrawn and not placed in the Pub'lic Document Room, coordinate with OGC to determine whether all copies can be returned.

5. Required Documentation After completing the review and making the determination, the responsible person will prepare the following:

(a) A letter to the applicant / licensee / vendor, or owner of the material, l for signature by the PM or Branch Chief and concurrence by appropriate i review personnel and OGC, notifying the company of approval or  ;

rejection of the request. The letter should include a sumary of the '

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results of the review with respect to the various considerations, the  ;

i balancingofpublicinterestversuscompany(b)(4).

considerations associated with 10 CFR 2.790 interest, and 1any Enclosures andother 1 2 are samples of approval and rejection letters.

(b) Occasionally it might be necessary to get clarification or additional i justification from the applicant / licensee / vendor in order to make the l determination. Enclosure 3 is a sample letter requesting additional information to justify withholding.

If an applicant / licensee / vendor fails to respond to a request for  !

additional information or fails to request withdrawal of the documents j after being notified that the request for withholding has been rejected, the responsible person (PM or technical reviewer) should contact the owner l of the information by telephone to decide whether the owner consciously i has chosen to ignore the NRC requi g for additional information or to take  !

no action with respect to a notice of rejection. Only after such assurance l 1sobtainedshouldactionunder10CFR2.790(c) betaken. This action I should be effected by the issuance of a memorandum from the responsible person to the Chief, Records and Reports Management Branch, ARM. This memorandum would request that the proprietary material be released for public disclosure.

There are special situations where the same proprietary information will be used or referenced repeatedly over a period of time. An example is a vendor's analytical model, which is used in support of several applications. i It is not possible to grant a blanket approval because the criteria for withholding are time-dependent. In such cases the complete review, as described in this procedure, will be made the first time the information 1 is submitted. Subsequent submittals in connection with applications must  ;

be accompanied by certification by the owner stating that the original l affidavit that formed the basis for the staff's initial determination are accurate and current. The responsible person will'do as much review as is  !

necessary to reaffirm or reject the original determination and issue a letter to the owner of the information that discusses the findings (either an affirmation or rejection of the original determination).

The guidance and procedures outlined in this office letter also should be followed, as appropriate, when reviewing amendments, supplements, or revisions to proprietary documents.

Note that the application, affidavit, and letters to the owners of the proprietary information are placed in the Public Document Rooms. If the affidavit is proprietary, it would not, of course, be placed in the Public Document Rooms.

6. Transmittal of Proprietary Documents to Consultants / Contractors From time to time it may be necessary to transmit proprietary documents to consultants or contractors in connection with specific reviews.

Enclosure 4 is a sample transmittal letter that could be used, m __ . _ . . _

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7. Receipt of Informal Proprietary Material Provided at NRC Meetings with ,

Utilities and Vendors )

Occasionally, utilities and vendors may hand out proprietary material which contains new methodologies, etc., while meeting with the staff, and may request that it be withheld from public disclosure. The material may not be intended for use in any official action or will not be formally submitted, but is provided for information only. Such material is subject to a Freedom of Information Act request, if the proprietary material is in NRC's posses-sion at the time of receipt of the FOIA request. Thus, such information will i be treated as proprietary within the provision of 10 CFR 9.4, with some l exceptions. I It is recomended that upon receipt of proprietar l described above, the recipient prepare a letter seeEnclosure5)and (y material in the manner i send it to the submitter of the material. If the provisions of the letter  !

are not acceptable, the submitter may request that the material be returned.

8. Protecting, Distributing, and Mailing Proprietary Documents Prepared by the NRC Proprietary informatio, can be stored in a desk drawer or filing cabinet.

It should never be left out. (Information pertaining to requirements for physical protection of licensed activities in nuclear power reactors against sabotage must be stored in a safe or vault.)

Each page of the proprietary document should be marked accordingly. The proprietary material should be mailed in a double envelope. The inner envelope should be stamped front and back "Proprietary Information." The outer envelope should be addressed as ucual without the proprietary stamp, i The proprietary material should only be sent to those who have a need to  !

know(e.g., addressee,theoriginator/PM/ reviewer,andcentral#iles), l A Safety Evaluation Report (SER) documenting the staff's review of a pro-prietary report may be transmitted to the vendor or utility for the sole purpose of determining whether the staff has discussed proprietary infor-mation in the report. This transmittal letter should clearly state that the requested review is in regard to proprietary information only. In such cases the transmittal letter and draft report should be sent to Central Files. The transmittal letter only should be placed in the Public Document Room. When an SER contains proprietary information, a nonproprietary version should also be prepared.

When the vendor or utility responds to the staff's request for a proprietary review of NRC's SER, a memorandum should be sent to Chief, Records and Reports Management Branch, ARM, acknowledging that the document should be maintained as proprietary, or stating that the document is not proprietary and that it should be released for public disclosure.

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' j MAY 2 419a3 All NRR Employees EFFECTIVE DATE This office letter is effective immediately.

Or1~4"nl Tr.Las E. EurS U'lc7 Thomas E. Murley, Director Office of Nuclear Reactor Regulation

Enclosures:

1. Sample Approval Letter , Distribution.
2. Sample Rejection Letter  : Centra L F11es

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3. Sample Letter Requesting PDTSS R/F Additional Information HSmith
4. Sample Letter transmitting SBlack proprietary information EShoma ker to a contractor / consultant CThomas
5. Sample Proprietary Receipt Letter FGillespie TMurley NRC PDR cc: See next page b3o g 0%/C (f)

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cc: V. Stello, EDO 17G-13 l J. Taylor, E00 17G-13 l J. Partlow, OSP 7-D-4 i W. Mcdonald, ARM MNBB-6201 l W. Russell R-I I J. Grace R-II

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UNITED STATES e "t NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 Enclosure 1 Docket No.

SAMPLE APPROVAL LETT R

SUBJECT:

REQUEST FOR WITHHOLDING INFORMATION FROM PUBLIC DISCLOSURE Byyourapplicationandaffidavitdated( ) you submitted (description of document) and requested that it be withheld from public disclosure pursuant to 10 CFR 2.790.

You stated that the submitted information should be considered exempt from mandatory public disclosure for the following reasons:

(Describe, as stated in the request for withholding listing paragraph form given in the application.)

We have reviewed your application and the material in accordance with the requirementsof10CFR2.790and,onthebasisof(applicant / vendor's) state- 1 ments, have determined that the submitted information sought to be withheld l contains trade secrets or proprietary comercial information.

[For situations where a proprietary and nonproprietary version of the same  !

report have been submitted.] .

l Therefore,theversion(s)ofthesubmittedinformationmarkedas proprietary will be withheld from p(ublic disclosure pursuant to10 CFR 2.790(b)(5) 1954, as amended.

[For situations where we only have a proprietary version of a document which may be entirely proprietary or only have portions that are claimed to be i proprietary.] l Therefore,the(givetitleofdocumentorapplicableportionofdocument) marked as proprietary, will be withheld from public disclosure pursuant to  :

10 CFR 2.790(b)(5) and Section 103(b) of the Atomic Energy Act of 1954, as amended.

Withholding f p public inspection shall not affect the right, if any, of persons properif and directly concerned to inspect the documents. If the need arises, we may send copies of this information to our consultants working in this area. We will, of course, ensure that the consultants have signed the appropriate agreements for handling proprietary information.

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If the basis for withholding this information from public inspection should l change in the future such that the information could then be made available for public inspection, you should promptly notify the NRC. You also should understand that the NRC may have cause to review this determination in the future, for example, if the scope of a Freedom of Information Act request includes your information. In all review situations, if the NRC makes a determination adverse to the above, you will be notified in advance of any public disclosure.

Sincerely, I

l Project Manager or 1 Branch Chief l Concurrence: Originator,ReviewBC(whenappropriate),OGC(E.Shomaker) l Distribution: Central Files, PDR, Local PDR, Branch File, PD, AD, BC, Originator, LA, E. Shomaker cc: Licensee (orvendor/ owner) l Service List '

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Enclosure 2 Docket No.

SAMPLE REJECTION LETTER

SUBJECT:

REQUEST FOR WITHHOLDING INFORMATION FROM pUBLIC DISCLOSURE By your application and affidavit dated ( ) you submitted (description of document) and requested that it be withheld from public disclosure pursuant to 10 CFR 2.790.

Your reasons for requesting our withholding of this information were (describe justifications given in application).

On (date), we notified you that we had completed our review of the application and documents and concluded that you had not supplied sufficient justification (information) for our withholding this information from public disclosure (for our making the necessary determination). On (date) we received your additional information.*

We have reviewed your application and all of the supporting information in accordance with the requirements of 10 CFR 2.790 and have concluded that you have not provided sufficient justification for us to determine that the information sought to be withheld from public disclosure contains trade secrets, proprietary, or confidential connercial or financial information.**

We have reviewed your application and all of the supporting information in l accordance with the requirements of 10 CFR 2.790 and have concluded that the '

information sought to be withheld from public disclosure contains trade secrets, proprietary, or confidential commercial or financial information.**

However, our review has led us to the conclusion that the right of the public to be fully apprised as to the basis for and effects of the proposed action outweighs the demonstrated concern for protection of your competitive position.

(Explain). ,

This paragraph is to be inserted only if a request for additional information was previously sent.

Include one or more of these categories as appropriate and state reasons.

Enclosure 2 Accordingly, we have concluded that the information sought to be withheld from public disclosure does not meet the requirements of 10 CFR 2.790. Therefore, your request to withhold (description of documents) from public disclosure is denied.

Within 30 days from the receipt of this letter, the subject documents will be placed in the Public Document Rooms. If, within thirty (30) days of the receipt of this letter,)you request withdrawal of the documents in accordance with10 CFR 2.7 and regulations and a determination made whether the documents will be withheld from public disclosure and returned to you.

Sincerely, Project Manager or Branch Chief Concurrence: Originator, Appropriate Reviewers, OGC (E. Shomaker)

Distribution: Central Files, PDR, LPDR, Appropriate Branch File, AD, LA, BC, Originator, OGC l

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Enclosure 3 Docket No.

SAMPLE LETTER RE0 VESTING ADDITIONAL INFORMATION

SUBJECT:

REQUEST FOR WITHHOLDING INFORMATION FORM PUBLIC DISCLOSURE By your application and affidavit dated ( ) you submitted (description of document) and requested that it be withheld from public disclosure pursuant to 10 CFR 2.790.

Section 2.790(b)(1)(ii) of 10 CFR Part 2 of the Comission's regulations requires that each supporting affidavit contain a full statement of the reasons on the basis of which it is claimed that the information should be withheld from public disclosure. The section further requires the statement to "address with specificity" the considerations listed in 10 CFR 2.790(b)(4).

Your affidavit has been reviewed in light of the aforementioned paragraphs of the regulations and (explain in general terms the deficiencies of the affidavit).

Accordingly, consideration should be given to supplementing the present record I with additional factual information. If such action is taken, it is suggested that you furnish specific factual information for your application indicating (request specific items of information needed to make affidavit sufficient).

4 In sumary, we have determined that your affidavit is not in conformity with j 10 CFR 2.790(b) of the Comission's regulations inasmuch as it fails to address the considerations of paragraph (b)(4) with sufficient specificity to enable us to maketherequireddeterminationunder10CFR2.790(b). Consequently, we are unable to conclude at this time that the information referenced in the affidavit is proprietary. I In accordance with 10 CFR 2.790(c), the information sought to be withheld will be placed in the Comission's Public Document Room 30 days after your receipt of this letter unless you either seek to withdraw the information requested to be withheld or provide the Nuclear Regulatory Comission with an amended affidavit meeting the requirements of 10 CFR 2.790(b). If you request that the information be withdrawn, your request will be considered in light of

Enclosure 3 applicable statutes and regulations and a determination made whether the documents will be withheld from public disclosure and returned to you.

Sincerely, PM or Branch Chief Concurrence: Originator, OGC, (E. Shomaker)

Distribution: Central Files, PDR, LPDR, Appropriate Branch File, AD, LA, BC, Originator, OGC l

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%,'****/ SAMPLE LETTER TRANSHITTING PROPRIETARY DATA TO CONTRAp0R/ CONSULTANT l

1 Docket No:

Dear  :

Reference:

(Include Contract No./ FIN No., TACS No.)

In connection with your review of , we are providing the folicwing proprietary document: (title) .

This document was submitted to NRC by with a request that it be withheld from public disclosure pursuant to 10 CFR 2.790. i Even though we are withholding this document in accordance with 10 CFR 2.790 (b)(6) of the Comission's regulations, we are transmitting it to you to '

assist you in preparing your report under the above referenced contract.

You are requested not to reproduce or further disclose this information and to return the document to me upon completion of your review. Please sign the agreement stated below and return a copy of this letter in the enclosed self-addressed envelope.

Agreement: I agree not to reproduce or disclose the document  ;

transmitted with this letter and to return document i upon completion of ray review.

Signed:

Date:

Sincerely, Branch Chief

Enclosures:

(WithholdfromPublicDisclosure)

1. Proprietary Report from (Name of Vendor)
2. Copy of Letter to be Returned
3. Self-Addressed Envelope Concurrence: Originator Branch Chief Distribution Central Files Reading File Reviewer Technical Assistance Program Manager 1 5

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Enclosure 5 Docket No.

SAMPLE PROPRIETARY RECEIPT LETTER Submitter's Address

SUBJECT:

INFORMAL FROPRIETARY MATERIAL PROVIDED AT MEETING ON _(DATE)

The material >rovided to the NRC (describe circumstances, dates, etc.) contained information t1at you requested be withheld from public disclosure in accordance with Comission's regulations regarding the handling of proprietary information.

Since the material was for the general information of the staff and is not intended to be used as a basis for any official actions by the NRC, we will treat this material as proprietary information within the provision of 10 CFR 9.5(4) of the Commission's regulations, with the following exceptions:

(1) Information that is found to be generally available to the public will not be treated as proprietary.

(2) Information that is available to the government or becomes available on an unrestricted basis will thereafter be treated as nonproprietary.

(3) Documentary material requested under the Freedom of Information Act (5. U.S.C. 552) will be reviewed at the time the request is received and a determination made whether such information may be withheld from public disclosure. This determination will be made on the basis of additional information that will be required to be furnished to the NRC in support of the (submitter's) proprietary position.

(4) The NRC, under a nondisclosure agreement, may disclose this information to licensees and applicants i# such disclosure is necessary to ensure that the public health and safety is adequately protected.

If there is a need to consider the public disclosure of the (submitter's) p(roprietary submitter) would material identified be notified prior in to this making letter, it is our intention a disclosure that and determination that such a determination would be made in accordance with the procedures and conditions of 10 CFR 9, Subpart A. Should (submitter) employ these data as of any license application or any other action identified in 10 CFR 2.790(a)part ,

such data shall be separately submitted and such submittal shall include an application for withholding, accompanied by an affidavit meeting the requirements of 10 CFR 2.790(b).

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i Enclosure 5 I

We hope that the provisions set forth in this letter for control of this ,

information are acceptable to yeu, Sincerely, PM or Branch Chief 9

Concurrence: Originator,OGC(E.Shomaker),BC Distribution: Central Files, PDR, Branch File, AD, Originator, E. Shoraker i

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