ML17320A844
| ML17320A844 | |
| Person / Time | |
|---|---|
| Site: | Cook  |
| Issue date: | 10/11/1983 |
| From: | WIESEMANN R A WESTINGHOUSE ELECTRIC COMPANY, DIV OF CBS CORP. |
| To: | DENTON H R Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML17320A829 | List: |
| References | |
| CAW-83-87, NUDOCS 8311180268 | |
| Download: ML17320A844 (13) | |
Text
ATTACH(TNT2.QWestinghouseElectricCorporationWaterReactorDivisionsHuctearTechnologyOlvlslonBox355PittsburghPennsylvania15230October11,1983Mr.HaroldDenton,DirectorOfficeofNuclearReactorRegulationU.S.NuclearRegulatoryCommissionWashington,D.C.20555APPLICATIONFORWITHHOLDINGPROPRIETARYINFORMATIONFROMPUBLIC'ISCLOSURECAW-83-87
Reference:
IndianaandMichiganElectricCompanylettertoU.S.NRC,AlexichtoDenton,datedOctober,1983Theproprietarymaterialtransmittedbythereferenceletterforwhichwith-holdingisbeingrequestedbyIndianaandMichiganElectricCompany(IandME)isofthesametypeastheproprietarymaterialpreviouslysubmittedin'connectionwithNRCStaffreviewsofWCAP-9401/9402andWCAP-9500.Apre-viousApplicationforWithholding,AW-78-23,wasaccompaniedbyanon-proprietaryAffidavitsignedbytheowneroftheproprietaryinformation,WestinghouseElectricCorporation.TheproprietarymaterialisbeingsubmittedinsupportoftransitionreloadanalysisassociatedwiththeIandMEDonaldC.CookNuclearPlantUnitNo.2.Accordingly,thisletterauthorizestheuseofthepreviouslyfurnishedaffidavit,acopyofwhichisattached.Correspondencewithrespecttol:theproprietaryaspectsofthisapplicationforwithholdingortheWestinghousea'ffidavitshouldreferenceCAW-83-87andshouldbeaddressedtotheundersigned.Verytrulyyours,bertA.Wiesemann,ManagerRegulatory8LegislativeAffairsMMS:pjAttachmentcc:E.C.Shomaker,Esq.OfficeoftheExecutiveLegalDirector,NRC83iii8026883iiiiPDRADOCK050003ihPPDR AM-78-23AFFIDAVITCOHNONMEALTHOFPENNSYLYANIA:COUNTYOFALLEGHENY:Beforeme,theundersignedauthority,personallyappearedRobertA.Miesemann,who,beingby;edulyswornaccordingtolaw,:deposesandsaysthatheisauthorizedtoexecutethisAffidavitonbehalfofMestinghouseE1ectricCorporation("Mestinghouse")andthattheavermentsoffactsetforthinthisAffidavitaretrueandcorrecttothebestofhisknowledge,information,andbelief:RobertA.Miesemann,HanagerLicensingProgramsSworntoandsubscribedbefore,methis.-"day)of//c4~w1g78.iJ,:7,ig)~~NotaryPublicAI4.':".3
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N-78-23(1)IamManager,LicensingPrograms,inthePressurizedMaterReactorSystemsDivision,ofAestinghouseElectricCorporationandassuch,'havebeenspecificallydelegatedthefunctionofreviewingtheproprietaryinformationsoughttobewithheldfrompublicdisclosurefnconnectionwithnuclearpowerplant.licensingorrulemakingproceedings,andamauthorizedtoapplyforitswithholdingonbehalfoftheWestinghouseMaterReactorDivisions.(2)Iammakingthisaffidavitinconformancewiththeprovisionsof10CFRSection2.'790oftheCommissionsregulationsandincon-)unctionwiththeWestinghouseapplicationforwithholdingaccompanyingthisAffidavit.(3)IhavepersonalknowledgeofthecriteriaandproceduresutilizedbyMestinghouseNuclearEnergySystemsindesignatinginformationasatradesecret,privilegedora'sconfidentialcommercialorfinancialinformation.(4)Pursuanttotheprovisionsofparagraph(b)(4)ofSection2.790oftheConmission'srogulations,thefollowingisfurnishedforconsiderationbytheCommissionin.determiningwhethertheinformationsoughttobewithheldfrompublicdisclosureshouldbewithhe1d.(i)Theinformationsoughttobewithheldfrompublicdisclosure~isownedandhasbeenheldinconfidencebyWestinghouse.(ii)TheinformationisofatypecustomarilyheldinconfidencebyWestinghouseandnotcustomarilydisclosedtothepublic.Westingtousehasarationalbasisfordeterminingthetypesofinformationcustomarilyhe1dinconfidencebyitand,inthatconnection,utilizesasystemtodeterminewhenand N-78-23whethertoholdcertaintypesofinformationinconfidence.TheapplicationofthatsystemandthesubstanceofthatsystemconstitutesMestinghousepolicyandprovidestherationalbasisrequired.CriteriaandStandardsUtilizedIndeterminingwhetherinformationinadocumentorreportisproprietary,thefollowingcriteriaandstandardsareutilizedbyMestinghouse.Informationis'roprietaryifanyoneofthe~followingaremet:(a)Theinformationrevealsthedistinguishingaspectsof.aprocess(orcomponent,structure,tool,method,etc.)wherepreventionofitsusebyany.ofMestinghouse'scompetitorswithoutlicensefromMestinghouseconstitutesacompetitiveeconomicadvantageoverothercompanies.(b)Itconsistsofsupportingdata,includingtestdata,relativetoaprocess(orcomponent,structure,too<,method,etc.),theapplicationofwhichdatasecuresa'Icompetitiveeconomicadvantage,e.g.,byoptimizationorimprovedmarketability.(c)Itsusebyacompetitorwouldreducehisexpenditureofresourcesorimprovehiscompetitivepositioninthedesign,marufacture,shipment,installation,assuranceofquality,orlicensingofasimilarproduct.(d)Itrevealscostorpriceinformation,productioncapacities,budgetlevels,orcomnercialstrategiesofMestinghouse,itscustomersorsuppliers.
4-(e)Itrevealsaspectsofpast,present,orfutureMesting-houseorcustomerfundeddevelopmentplansandprogramsofpotentialcoamercialvaluetoMestinghouse.(f)Itcontainspatentableideas,forwhichpatentprotectionNaybedesirable.(g)ItisnotthepropertyofWestinghouse,butmustbetreated.asproprietarybyWestinghouseaccordingtoagreementswiththeowner.(iii)TheinformationisbeingtransmittedtotheCommissioninconfidenceand,undertheprovisionsof10CFRSection2.790,itistobereceivedinconfidencebytheCommission.(iv)Theinformationisnotavai1ableinpublicsourcestothebest~ofourknowledgeandbelief.(v)Theproprietaryinformationsoughttobewithheldinthissubmittalarethecopies'ofslidesuti1izedbyWestinghouseinitspresentationtotheNRC.attheMarch21,1978meetingconcerningtheWestinghouseoptimizedfuelassembly.Theletterandthecopiesofslidesarebeingsubmittedinpre-1iminaryform.totheCormissionforrevie~andcommentontheWestinghouseoptimizedfuelassenblyinadvanceofaformalsuhnittalforNRCapproval.PublicdisclosureofthisinformationislikelytocausesubstantialharmtothecompetitivepositionofWestinghouseasitwouldrevealthedescriptionoftheapproveddesign,thecomparisonoftheimproveddesignwiththestandarddesign,thenatureofthetestconducted,thetestconditions,thetestresultsandtheconclusionsofthetesingprogram, 0-78-23allofwhichisrecognizedbytheStafftobeofcompetitivevalueandbecauseofthelargeamountofeffortandmoneyexpendedbyMestinghouseoveraperiodofseveralyearsincarryingoutthisparticulardevelopmentprogram.Further,itwouldenablecompetitorstousetheinformationforcomnercialpurposesandalsotomeet,NRCreq'uirementsforlicensingdocumentation,eachwithoutpurchasingtherightfromMesting-housetousethe.information.InformationregardingitsdevelopmentprogramsisvaluabletoMestinghousebecause:(a)InformationresultingfromitsdevelopmentprogramsgivesMestinghouseacompetitiveadvantageoveritscompetitors.Itis,therefore,withheldfromdisclosuretoprotecttheMestinghousecompetitiveposition.l1(b)Itisinformationwhichismarketableinmanyways.Theextenttowhichsuchinformationisavailabletocompet-itorsdiminishestheMestinghouseabilitytosellproductsandservicesinvolvingtheuseoftheinformation.(c)UsebyourcompetitorwouldputMestinghouseatacom-petitivedisadvantagebyreducinghisexpenditureofresourcesatourexpense.(d)Eachcomponentofproprietaryinformationpertinenttoaparticularcompetitiveadvantageispotentiallyasvaluableasthetotalcompetitiveadvantage.Ifcom-petitorsacquirecomponentsofproprietaryinformation,anyonecomponentmaybethekevtot'Oeqntirpp':z4etherebydeprivingMestinghouseofacompetitiveadvantage.
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~~~AM-78-23'(e)TheMestinghousecapacitytoinvestcorporateassetsin~researchanddevelopmentdependsuponthesuccessinobtainingandmaintainingacompetitiveadvantage.Beinganinnovativeconcept;thisinformationmightnotbediscoveredbythecompetitorsofMestinghouseindependently.'oduplicatethisinfor-mation,competitorswouldfirsthavetobesimilarlyinspiredandwouldthenhavetoexpendaneffortsimilartothatofMestinghousetodevelopthedesign.Furtherthedeponentsayethnot.
r'ACHHENT3AFFIDAVITSTATEOFWashington)COUNTYOFBenton)ss.I,RichardB.Stout,beingdulysworn.herebysayandde-pose:1.IamManager,LicensingandSafetyEngineering,forExxonNuclearCompany,Inc.("ENC").andassuchIamauthorizedtoexecutethisAffidavit.2.IamfamiliarwithENC'sdetaileddocumentcontrolsystemandpolicieswhichgoverntheprotectionandcontrolofinformation.3.IamfamiliarwiththedocumentXN-NF-739(P)entitled"SeismicEvaluationofExxonNuclear17x17AssembliesinWestinghousePWR's",referredtoas"Document".InformationcontainedinthisDocumenthasbeenclassifiedbyENCasproprietaryinaccordancewiththecontrolsystemandpoliciesestablishedbyENCforthecontrolandprotectionofinformation.4.TheDocumentcontainsinformationofaproprietaryandconfidentialnatureandisofthetypecustomarilyheldinconfidencebyENCandnotmadeavailabletothepublic.Basedonmyexperience,Iamawarethatother.companiesregardinformationofthekindcontainedintheDocument.5.TheDocumenthasbeenmadeavailabletoAmericanElectricPowerServiceCorporationinconfidence,withtherequestthattheinformationcontainedintheDocumentnotbedisclosedordivulged.
6.TheDocumentcontainsinformationwhichisvitaltoacom-petitiveadvantageofENCandwouldbehelpfultocompetitorsofENCwhencompetingwithENC.7.TheinformationcontainedintheDocumentisconsideredtobeproprietarybyENCbecauseitrevealscertaindistinguishingaspectsofPWRseismicanalysismethodswhichsecurecompetitiveeconomicadvantagetoENCforfueldesignoptimizationandimprovedmarketability,andincludesinformationutilizedbyENCinitsbusinesswhichaffordsENCanopportunitytoobtainacompetitiveadvantageoveritscompetitorswhodonotormaynotknoworusetheinformationcontainedintheDocument.8.ThedisclosureoftheproprietaryinformationcontainedintheDocumenttoacompetitorwouldpermitthecompetitortoreduceitsexpenditureofmoneyandmanpowerandtoimproveitscompetitivepositionbygivingitextremelyvaluableinsightsintoPWRseismicanalysismethods,andwouldresultinsubstantialharmtothecompetitivepositionofENC.9.TheDocumentcontainsproprietaryinformationwhichisheldinconfidencebyENCandisnotavailableinpublicsources.10.InaccordancewithENC'spoliciesgoverningtheprotectionandcontrolofinformation,proprietaryinformationcontainedintheDocumenthasbeenmadeavailable,onalimitedbasis,toothersoutsideENConlyasrequiredandundersuitableagreementprovidingfornon-disclosureandlimiteduseoftheinformation.11.ENCpolicyrequiresthatproprietaryinformationbekeptinasecuredfileorareaanddistributedonaneed-to-knowbasis.
12.ThisDocumentprovidesinformationwhichrevealsPWRseismicanalysismethodsdevelopedbyENCoverthepastseveralyears.ENChasinvestedmillionsofdollarsandmanyman-yearsofeffortindevelopingtheanalysismethodsrevealedintheDocument.AssumingacompetitorhadavailablethesamebackgrounddataandincentivesasENC,thecompetitormight,ataminimum,developtheinformationforthesameexpenditureofmanpowerandmoneyasENC.13.Basedonmyexperienceintheindustry,IdonotbelievethatthebackgrounddataandincentivesofENC'scompetitorsaresuf-ficientlysimilartothecorrespondingbackgrounddataandincentivesofENCtoreasonablyexpectsuchcompetitorswouldbeinapositiontoduplicateENC'sproprietaryinformationcontinedintheDocuments.THATthestatementsmadehereinaboveare,tothebestofmyknowledge,information,andbelief,truthfulandcomplete.FURTHERAFFIANTSAYETHNOT~SWORNTOANDSUBSCRIBEDbeforemethis/jdayof,19+NOTARYPUBLIC
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