ML20038B228

Authorizes Util to Use Proprietary Info.Withholding of Info from Public Disclosure Requested (Ref 10CFR2.790)

ML20038B228
Person / Time
Site:	McGuire, Mcguire
Issue date:	11/25/1981
From:	Wiesemann R WESTINGHOUSE ELECTRIC COMPANY, DIV OF CBS CORP.
To:	Youngblood B Office of Nuclear Reactor Regulation
Shared Package
ML19268A480	List: ML20038B228
References
CAW-81-86, NUDOCS 8112040443
Download: ML20038B228 (8)

Text

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n sueear reenneregy civison Westinghouse Water Reactor Electric Corporation Divisions ecx 355 Pittsburgn Peensylvania 15230 Director of Nuclear Reactor Regulation November 25, 1981 Attn: Mr. B. J. Youngblood, Chief CAW-81-86 Licensing Branch Number 1 Division of Licensing U. S. Nuclear Regulatory Commission Phillips Building 7920 Norfolk Avenue Bethesda, Maryland 20014

SUBJECT:

Slides from the Model D-3 Steam Generator Vibration Review Meeting of November 20,1981 (Proprietary)

REF: Letter Application for Withholding Proprietary Information from Public Disclosure, Parker to Youngblood, December 1981

Dear Mr. Youngblood:

The proprietary ;aterial for which withholding is being requested by Duke Power Company is proprietary to Westinghouse and withholding is requested pur-suant to the provisions of paragraph (b)(1) of Section 2.790 of the Coinmission's regulations. Withholding from public disclosure is requested with respect to the subject information which is further identified in the affidavit accompany-ing this application. l The undersigned has reviewed the information sought to be withheld and is '

l authorized to apply for its withholding on behalf of Westinghouse, WRD, noti-fication of which was sent to the Secretary of the Commission on April 19, 1976.

The original affidavit accompanying this application sets forth the basis on which the information may be withheld from public disclosure by the Commission and addresses with specificity the considerations listed in paragraph (b)(4) of Section 2.790 of the Commission's regulations.

i Accordingly, this letter authorizes the use of the proprietary information and E.ffidavit CAW-81-86 by the Duke Power Company for McGuire Unit i.

Correspondence with respect to this application for withholding or the accom-panying affidavit should reference CAW-81-86 and be addressed to the under-signed.

Very truly yours, h vo w e ~

rt A. Wiesemann, Manager fRRegulatory & Legislative Affairs j /bek 1 Enclosure cc: E. C. Shomaker, Esq.

Office of the Executive Legal Director, NRC 8112O40443 811130~

PDR ADOCK 05000369 P PDR l

l ,n m CAW-81-86 l ,

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AFFIDAVIT l

l COMMONWEALTH OF PENNSYLVANIA:

ss COUNTY OF ALLEGHENY:

l l

l Before me, the undersigned authority, personally appeared l

E. P. Rahe, Jr., who, being by me duly sworn according to law, I deposes and says that he is authorized to execute this Affidavit on

! behalf of Westinghouse Electric Corporation (" Westinghouse") and that i the averments of fact set forth in this Affidavit are true and correct i to the best of his knowledge, information, and belief:

l E. P. Rahe, Jr., @ nager l

Nuclear Safety Department Sworn to and subscribed before me this d_f_ day of m h#1981.

J ll2L e[ Notary.. Pub [icf._,

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2- CAW-81-86 (1) I am Manager, Nuclear Safety Department, in the Nuclear Technology Division, of Westinghouse Electric Corporation and as such, I have been specifically delegated the function of reviewing the pro-prietary information sought to be withheld from public disclosure in connection with nuclear power plant licensing or rulemaking l proceedings, and am authorized to apply for its withholding on behalf of the Westinghouse Water Reactor Divisions.

(2) I am making this Affidavit in conformance with the provisions of 10CFR Section 2.790 of the Commission's regulations and in con-junction with the Westinghouse application for withholding ac-companying this Affidavit.

(3) I have personal knowledge of the criteria and procedures utilized by Westinghouse Nuclear Energy Systems in designating information as a trade secret, privileged or as confidential commercial or financial information.

(4) Pursuant to the provisions of paragraph (b)(4) of Section 2.790 of the Commission's regulations, the following is furnished for consideration by the Commission in determining whether the in-fonnation sought to be withheld from public disclosure should be withheld.

(f) The information cought to be withheld from public disclosure i is owned and has been held in confidence by Westinghouse.

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, s CAW-81-86 (ii) The information is of a type customarily held in confidence by Westinghouse and not customarily disclosed to the public.

Westinghouse has a rational basis for determining the types of information customarily held in confidence by it and, in that connection,-utilizes a system to determine when and whether to hold certain types of information in confidence.

The application of that system and the substance of that system constitutes Westinghouse policy and provides the rational basis required.

Under that system, information is held in confidence if it falls in one or more of several types, the release of which might result in the loss of an existing or potential com-petitive advantage, as follows:

(r.) The information reveals the distinguishing aspects of a process (or componant, structure, tool, method, etc.)

where prevention of its use by any of Westinghouse's competitors without license from Westinghouse consti-tutes a competitive economic advantage over other companies.

(b) It consists of supporting data, including test data, relative to a process (or component, structure, tool, method, etc.), the application of which data secures a competitive economic advantage, e.g., by optimization or improved marketability, i

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CAW-81 -86 (c) Its use 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 a similar product.

l (d) It reveals cost or price information, production cap-l acities, budget levels, or comercial strategies of Westinghouse, its customers or suppliers.

'(e) It reveals aspects of past, present, or future West-inghouse or customer funded development plans and pro-grams of potential comercial value to Westinghouse.

l (f) It contains catentable ideas, for which patent pro-tection may be desirable.

(g) It is not the property of Westinghouse, but must be treated as proprietary by Westinghouse according to agreements with the owner.

There are sound policy reasons behind the Westinghouse system which include the following:

(a) The use of such information by Westinghouse gives f

Westinghouse a competitive advantage over its com-petitors. It is, therefore, withheld from disclosure to protect the Westinghouse competitive position.

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CAW-81-86 (b) It is information which is marketable in many ways.

The extent to which such information is available to competitors diminishes the Westinghouse ability to sell products and services involving the use of the ,

information.

(c) Use by our competitor would put Westinghouse at a competitive disadvantage by reducing his expenditure of resources at our expense.

(d) Each component of proprietary information pertinent to a particular compctitive advantage is potentially as valuable as the total competitive advantage. If competitors acquire components of proprietary infor-mation, any one component may be the key to the entire puzzle, thereby depriving Westinghouse of a competitive advantage.

(e) Unrestricted disclosure would jeopardize the position of prominence of Westinghouse in the wor;d market, and thereby give a market advantage to the competition in those countries.

(f) The Westinghouse capacity to invest corporate assets in research and development depends upon the success in obtaining and maintaining a competitive advantage.

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CAW-81-86 (iii) The information is being transmitted to the Commission in confidence and, under the provisions of 10CFR Section 2.790, it is to be received in confidence by the Commission.

(iv) The information sought to be protected is not available in public sources or available informatioa has not been pre-viously employed in the same original manner or method to the best of our knowledge and belief.

(v) The proprietary information sought to be withheld in this subnittal is that which is appropriately marked in Model D-3 Steam Generator Presentation Slides for the McGuire Unit 1 being transmitted by the Duke Power Company letter Applica-tion for Withholding Proprietary Information from Public Disclosure, Parker to Youngblood, December 1981. The pro-prietary information as submitted is expected to be applicable in other licensee and applicant submittals in response to cer-tain NRC requirements for justification of the steam generator design and operation.

This information is part of that which will enable Westing-house to:

. (a) Provide documentation of the analyses, method and test-ing for product design and operation.

O (b) Assist the customer'to obtain NRC approval.

- .)

CAW-81-86 Further this information has substantial commercial value as follows:

'(a) Westinghouse plans to sell similar information to its customers for purposes of meeting NRC requirements for licensing documentation.

(b) Westinghouse can sell support and defense of the tech-nology to its customers in the licensing process.

Public disclosure of this information is likely to cause substantial harm to the competitive position of Westinghouse because it would enhance the ability of competitors to pro-vide similar analytical documentation and licensing defense services for commercial power reactors without commensurate expenses. Also, public disclosure of the information would enable others to use the information to meet NRC require-ments for licensing documentation without purchasing the right to use the information.

The development of the technology described in part by the information is the result of applying the results of many years of experience in an intensive Westinghouse effort and the expenditure of a considerable sum of money.

In order for competitors of Westinghouse to duplicate this information, similar technical programs would have to be performed and a significant manpower effort, having the requisite talent and experience, would have to be expended for system design software development.

Further the deponent sayeth not.

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