ML20198B493

Forwards non-proprietary Attachment F & Proprietary Attachment C Replacement Pages to 980515 Submittal Which Proposed to Change TS 5.5, Storage of Unirradiated & Sf. Proprietary Info Withheld,Per 10CFR2.790

ML20198B493
Person / Time
Site:	Nine Mile Point
Issue date:	12/09/1998
From:	Abbott R NIAGARA MOHAWK POWER CORP.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20138M115	List: ML20198B493 ML20198B499
References
NMP1L-1388, NUDOCS 9812180177
Download: ML20198B493 (5)

Text

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'> Ninpara o Mohawk' Richard B. Abbott Phone:315.349.1812 Vice President Fax: 315.349.4417 Nuc'earEmineering NMPIL 1388 U. S. Nuclear Regulatory Commission i Attn: Document Control Desk i Washington, DC 20555 RE: Nine Mile Point Unit 1 Docket No. 50-220 DPR-63

Subject:

Spent heel P6el Stomge Capacity Technical Specification Amendment APplication Gentlemen:

By letter dated May 15,1998, Niagara Mohawk Power Corporation (NMPC) proposed to change Technical Specification 5.5, " Storage of Unitradiated and Spent Fuel," to increase the number of fuel assemblies which can be stored in the pool from 2776 to 4086. Attachment C to our letter provided a proprietary version of the supporting analysis prepared by Holtec International. An affidavit executed by Holtec International detailing the reasons for the request to withhold the proprietary information was included as Attachment E. A non-proprietary version of this document was included as Attachment F.

Based on discussions with the Staff, Holtec has re-assessed the proprietary nature of this information and determined several sections previously classified as proprietary to be non-proprietary. Accordingly, Holtec has executed a new affidavit, contained as Attachment 1 to this letter, and reissued the affected pages. Attachments 2 and 3 to this letter contain the reissued pages which will replace the same pages in Attachment C (proprietary) and Attachment F (non-proprietary) of our May 15,1998 submittal, respectively.

Sincerely, 9812180177 981209 I~I h a. N PDR ADOCK 05000220 D Richard B. Abbott P ppR L.5 Vice President - Nuclear Engineering RBA/JMT/sc r 11' Attachments *L

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xc: Mr. H. J. Miller, NRC Regional Administrator Region I  !

Mr. S. S. Bajwa, Director, Project Directorate I-1, NRR Mr. G. K. Hunegs, Senior Resident Inspector Mr. D. S. Hood, Senior Project Manager, NRR Mr. John P. Spath NYSERDA (()

286 Washington Avenue Ext.

Albany, NY 12203-6399 g-Records Management (f L-f( $4^(U w Nine Mile Point Nuclear Station P0.

,[ \ Box 63, PW Lycoming], New York 13093-0C63

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1 ATTACHMENT 1 '

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AFFIDAVIT PURSUANT TO 10CFR2.790 I, Michael P. McNamara, being duly sworn, depose and state as follows:

(1) I am the Director of Nuclear nojects for Holtec International 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. l (2) The information sought to be withheld is contained in the document entitled

" Licensing Report for Reracking Nine Mile Point Unit 1 Spent Fuel Pool" Holtec Report HI-91738. The proprietary information is designated with backshading.

(3) In making this application fer withholding of proprietary information of which it is the owner, Holtec International 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 10CFR Part 9.17(a)(4), 2.790(a)(4), and 2.790(b)(1) for " trade secrets and conunercial 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, 704F2d1280 (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, meth(xi, or apparatus, including i supporting data and analyses, where prevention of its use by Holtec's competitors without license from Holtec International constitutes a competitive economic advantage over other companies; 1

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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 Holtec International, its customers, or its suppliers;

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

e. Information which discloses patentable subject matter for which it may be desirable to obtain patent protection. l The information sought to be withheld is considered to be proprietary for the reasons set forth in paragraphs 4.a,4.b,4.d, and 4.e, above.

(5) The information sought to be withheld is being submitted to the NRC in confidence. The information (including that compiled from many sources) is of l' a sort customarily held in confidence by Holtec International, 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 Holtec International. No l public disclosure has been made, and it is not available in public sources. All l disclosures to third parties, including any required transmittals to the NRC, have ,

been made, or must be made, pursuant to regulatory provisions or proprietary l 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 Holtec International is limited on a "need to 2

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AFFIDAVIT PURSUANT TO 10CFR2.790 1

know" basis. ,

1 (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 l (or his designee), and by the Legal Operation, for technical content, competitive effect, and determination of the accuracy of the proprietary designation. j Disclosures outside Holtec International are limited to regulatory bodies, l customers, and potential customers, and their agents, suppliers, and licensees, I and others with a legitimate need for the information, and then only in accordance with appropriate regulatory provisions or proprietary agreements.

(8) The information classified as proprietary was developed and compiled by Holtec International at a significant cost to Holtec International. This information is l classified as proprietary because it contains detailed historical data and analytical i results not available elsewhere. This information would provide other parties, including competitors, with information from Holtec International's technical database and the results of evaluations performed using codes developed by Holtec International. Release of this information would improve a competitor's position without the competitor having to expend similar resources for the development of the database. A substantial effort has been expended by Holtec International to develop this information.

(9) Public disclosure of the information sought to be withheld is likely to cause substantial harm to Holtec International's competitive position and foreclose or reduce the availability of profit-making opportunities. The information is part of Holtec International's comprehensive spent fuel storage 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 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 money by Holtec International.

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i The precise value of the expertise to devise an evaluation process and apply the  ;

L correct analytical methodology is difficult to quantify, but it clearly is j substantial.

Holtec International's competitive advantage will be lost if its competitors are l able to use the results of the Holtec International 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.

The value of this information to Holtec International 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 Holtec International 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 NEW JERSEY )

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COUNTY OF BURLINGTON )

Michael P. McNamara, 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, information, and belief.

Executed at Marlton, New Jersey, this 19th day of November,1998.

Michael P. McNamara Holtec International Subscribed and sworn before me this /[ day of N 998.

4 C. P NOTARY PUBLIO OF NEW JERSEY My Commission Egires April 25,2000

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