ML17320A844

Forwards Affidavit AW-78-23 & RB Stout 831011 Affidavit Requesting Withholding XN-NF-739(P), Seismic Evaluation of Exxon Nuclear 17x17 Assemblies in Westinghouse Pwrs.

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: ML17320A827 ML17320A844
References
CAW-83-87, NUDOCS 8311180268
Download: ML17320A844 (13)

Text

ATTACH(TNT 2.QWestinghouse ElectricCorporation WaterReactorDivisions HuctearTechnology OlvlslonBox355Pittsburgh Pennsylvania 15230October11,1983Mr.HaroldDenton,DirectorOfficeofNuclearReactorRegulation U.S.NuclearRegulatory Commission Washington, D.C.20555APPLICATION FORWITHHOLDING PROPRIETARY INFORMATION FROMPUBLIC'ISCLOSURE CAW-83-87

Reference:

IndianaandMichiganElectricCompanylettertoU.S.NRC,AlexichtoDenton,datedOctober,1983Theproprietary materialtransmitted bythereference letterforwhichwith-holdingisbeingrequested byIndianaandMichiganElectricCompany(IandME)isofthesametypeastheproprietary materialpreviously submitted in'connection withNRCStaffreviewsofWCAP-9401/9402 andWCAP-9500.

Apre-viousApplication forWithholding, AW-78-23, wasaccompanied byanon-proprietary Affidavit signedbytheowneroftheproprietary information, Westinghouse ElectricCorporation.

Theproprietary materialisbeingsubmitted insupportoftransition reloadanalysisassociated withtheIandMEDonaldC.CookNuclearPlantUnitNo.2.Accordingly, thisletterauthorizes theuseofthepreviously furnished affidavit, acopyofwhichisattached.

Correspondence withrespecttol:theproprietary aspectsofthisapplication forwithholding ortheWestinghouse a'ffidavit shouldreference CAW-83-87 andshouldbeaddressed totheundersigned.

Verytrulyyours,bertA.Wiesemann, ManagerRegulatory 8Legislative AffairsMMS:pjAttachment cc:E.C.Shomaker, Esq.OfficeoftheExecutive LegalDirector, NRC83iii80268 83iiiiPDRADOCK050003ihPPDR AM-78-23AFFIDAVIT COHNONMEALTH OFPENNSYLYANIA:

COUNTYOFALLEGHENY:

Beforeme,theundersigned authority, personallyappearedRobertA.Miesemann, who,beingby;edulyswornaccording tolaw,:deposesandsaysthatheisauthorized toexecutethisAffidavit onbehalfofMestinghouse E1ectricCorporation

("Mestinghouse")

andthattheaverments offactsetforthinthisAffidavit aretrueandcorrecttothebestofhisknowledge, information, andbelief:RobertA.Miesemann, HanagerLicensing ProgramsSworntoandsubscribed before,me this.-"day)of//c4~w1g78.iJ,:7,ig)~~NotaryPublicAI4.':".3

\

N-78-23(1)IamManager,Licensing

Programs, inthePressurized MaterReactorSystemsDivision, ofAestinghouse ElectricCorporation andassuch,'havebeenspecifically delegated thefunctionofreviewing theproprietary information soughttobewithheldfrompublicdisclosure fnconnection withnuclearpowerplant.licensing orrulemaking proceedings, andamauthorized toapplyforitswithholding onbehalfoftheWestinghouse MaterReactorDivisions.

(2)Iammakingthisaffidavit inconformance withtheprovisions of10CFRSection2.'790oftheCommission sregulations andincon-)unctionwiththeWestinghouse application forwithholding accompanying thisAffidavit.

(3)Ihavepersonalknowledge ofthecriteriaandprocedures utilizedbyMestinghouse NuclearEnergySystemsindesignating information asatradesecret,privileged ora'sconfidential commercial orfinancial information.

(4)Pursuanttotheprovisions ofparagraph (b)(4)ofSection2.790oftheConmission's rogulations, thefollowing isfurnished forconsideration bytheCommission in.determining whethertheinformation soughttobewithheldfrompublicdisclosure shouldbewithhe1d.

(i)Theinformation soughttobewithheldfrompublicdisclosure

~isownedandhasbeenheldinconfidence byWestinghouse.

(ii)Theinformation isofatypecustomarily heldinconfidence byWestinghouse andnotcustomarily disclosed tothepublic.Westingtousehasarationalbasisfordetermining thetypesofinformation customarily he1dinconfidence byitand,inthatconnection, utilizesasystemtodetermine whenand N-78-23whethertoholdcertaintypesofinformation inconfidence.

Theapplication ofthatsystemandthesubstance ofthatsystemconstitutes Mestinghouse policyandprovidestherationalbasisrequired.

CriteriaandStandards UtilizedIndetermining whetherinformation inadocumentorreportisproprietary, thefollowing criteriaandstandards areutilizedbyMestinghouse.

Information is'roprietary ifanyoneofthe~following aremet:(a)Theinformation revealsthedistinguishing aspectsof.aprocess(orcomponent, structure, tool,method,etc.)whereprevention ofitsusebyany.ofMestinghouse's competitors withoutlicensefromMestinghouse constitutes acompetitive economicadvantage overothercompanies.

(b)Itconsistsofsupporting data,including testdata,relativetoaprocess(orcomponent, structure, too<,method,etc.),theapplication ofwhichdatasecuresa'Icompetitive economicadvantage, e.g.,byoptimization orimprovedmarketability.

(c)Itsusebyacompetitor wouldreducehisexpenditure ofresources orimprovehiscompetitive positioninthedesign,marufacture,

shipment, installation, assurance ofquality,orlicensing ofasimilarproduct.(d)Itrevealscostorpriceinformation, production capacities, budgetlevels,orcomnercial strategies ofMestinghouse, itscustomers orsuppliers.

4-(e)Itrevealsaspectsofpast,present,orfutureMesting-houseorcustomerfundeddevelopment plansandprogramsofpotential coamercial valuetoMestinghouse.

(f)Itcontainspatentable ideas,forwhichpatentprotection Naybedesirable.

(g)ItisnotthepropertyofWestinghouse, butmustbetreated.asproprietary byWestinghouse according toagreements withtheowner.(iii)Theinformation isbeingtransmitted totheCommission inconfidence and,undertheprovisions of10CFRSection2.790,itistobereceivedinconfidence bytheCommission.

(iv)Theinformation isnotavai1able inpublicsourcestothebest~ofourknowledge andbelief.(v)Theproprietary information soughttobewithheldinthissubmittal arethecopies'ofslidesuti1izedbyWestinghouse initspresentation totheNRC.attheMarch21,1978meetingconcerning theWestinghouse optimized fuelassembly.

Theletterandthecopiesofslidesarebeingsubmitted inpre-1iminaryform.totheCormission forrevie~andcommentontheWestinghouse optimized fuelassenblyinadvanceofaformalsuhnittal forNRCapproval.

Publicdisclosure ofthisinformation islikelytocausesubstantial harmtothecompetitive positionofWestinghouse asitwouldrevealthedescription oftheapproveddesign,thecomparison oftheimproveddesignwiththestandarddesign,thenatureofthetestconducted, thetestconditions, thetestresultsandtheconclusions ofthetesingprogram, 0-78-23allofwhichisrecognized bytheStafftobeofcompetitive valueandbecauseofthelargeamountofeffortandmoneyexpendedbyMestinghouse overaperiodofseveralyearsincarryingoutthisparticular development program.Further,itwouldenablecompetitors tousetheinformation forcomnercial purposesandalsotomeet,NRCreq'uirements forlicensing documentation, eachwithoutpurchasing therightfromMesting-housetousethe.information.

Information regarding itsdevelopment programsisvaluabletoMestinghouse because:(a)Information resulting fromitsdevelopment programsgivesMestinghouse acompetitive advantage overitscompetitors.

Itis,therefore, withheldfromdisclosure toprotecttheMestinghouse competitiveposition.

l1(b)Itisinformation whichismarketable inmanyways.Theextenttowhichsuchinformation isavailable tocompet-itorsdiminishes theMestinghouse abilitytosellproductsandservicesinvolving theuseoftheinformation.

(c)Usebyourcompetitor wouldputMestinghouse atacom-petitivedisadvantage byreducinghisexpenditure ofresources atourexpense.(d)Eachcomponent ofproprietary information pertinent toaparticular competitive advantage ispotentially asvaluableasthetotalcompetitive advantage.

Ifcom-petitorsacquirecomponents ofproprietary information, anyonecomponent maybethekevtot'Oeqntirpp':z4etherebydepriving Mestinghouse ofacompetitive advantage.

I

~~~AM-78-23'(e)TheMestinghouse capacitytoinvestcorporate assetsin~researchanddevelopment dependsuponthesuccessinobtaining andmaintaining acompetitive advantage.

Beinganinnovative concept;thisinformation mightnotbediscovered bythecompetitors ofMestinghouse independently.

'oduplicate thisinfor-mation,competitors wouldfirsthavetobesimilarly inspiredandwouldthenhavetoexpendaneffortsimilartothatofMestinghouse todevelopthedesign.Furtherthedeponentsayethnot.

r'ACHHENT3AFFIDAVITSTATEOFWashington

)COUNTYOFBenton)ss.I,RichardB.Stout,beingdulysworn.herebysayandde-pose:1.IamManager,Licensing andSafetyEngineering, forExxonNuclearCompany,Inc.("ENC").andassuchIamauthorized toexecutethisAffidavit.

2.IamfamiliarwithENC'sdetaileddocumentcontrolsystemandpolicieswhichgoverntheprotection andcontrolofinformation.

3.IamfamiliarwiththedocumentXN-NF-739(P) entitled"SeismicEvaluation ofExxonNuclear17x17Assemblies inWestinghouse PWR's",referredtoas"Document".

Information contained inthisDocumenthasbeenclassified byENCasproprietary inaccordance withthecontrolsystemandpoliciesestablished byENCforthecontrolandprotection ofinformation.

4.TheDocumentcontainsinformation ofaproprietary andconfidential natureandisofthetypecustomarily heldinconfidence byENCandnotmadeavailable tothepublic.Basedonmyexperience, Iamawarethatother.companies regardinformation ofthekindcontained intheDocument.

5.TheDocumenthasbeenmadeavailable toAmericanElectricPowerServiceCorporation inconfidence, withtherequestthattheinformation contained intheDocumentnotbedisclosed ordivulged.

6.TheDocumentcontainsinformation whichisvitaltoacom-petitiveadvantage ofENCandwouldbehelpfultocompetitors ofENCwhencompeting withENC.7.Theinformation contained intheDocumentisconsidered tobeproprietary byENCbecauseitrevealscertaindistinguishing aspectsofPWRseismicanalysismethodswhichsecurecompetitive economicadvantage toENCforfueldesignoptimization andimprovedmarketability, andincludesinformation utilizedbyENCinitsbusinesswhichaffordsENCanopportunity toobtainacompetitive advantage overitscompetitors whodonotormaynotknoworusetheinformation contained intheDocument.

8.Thedisclosure oftheproprietary information contained intheDocumenttoacompetitor wouldpermitthecompetitor toreduceitsexpenditure ofmoneyandmanpowerandtoimproveitscompetitive positionbygivingitextremely valuableinsightsintoPWRseismicanalysismethods,andwouldresultinsubstantial harmtothecompetitive positionofENC.9.TheDocumentcontainsproprietary information whichisheldinconfidence byENCandisnotavailable inpublicsources.10.Inaccordance withENC'spoliciesgoverning theprotection andcontrolofinformation, proprietary information contained intheDocumenthasbeenmadeavailable, onalimitedbasis,toothersoutsideENConlyasrequiredandundersuitableagreement providing fornon-disclosure andlimiteduseoftheinformation.

11.ENCpolicyrequiresthatproprietary information bekeptinasecuredfileorareaanddistributed onaneed-to-know basis.

12.ThisDocumentprovidesinformation whichrevealsPWRseismicanalysismethodsdeveloped byENCoverthepastseveralyears.ENChasinvestedmillionsofdollarsandmanyman-years ofeffortindeveloping theanalysismethodsrevealedintheDocument.

Assumingacompetitor hadavailable thesamebackground dataandincentives asENC,thecompetitor might,ataminimum,developtheinformation forthesameexpenditure ofmanpowerandmoneyasENC.13.Basedonmyexperience intheindustry, Idonotbelievethatthebackground dataandincentives ofENC'scompetitors aresuf-ficiently similartothecorresponding background dataandincentives ofENCtoreasonably expectsuchcompetitors wouldbeinapositiontoduplicate ENC'sproprietary information continedintheDocuments.

THATthestatements madehereinabove are,tothebestofmyknowledge, information, andbelief,truthfulandcomplete.

FURTHERAFFIANTSAYETHNOT~SWORNTOANDSUBSCRIBED beforemethis/jdayof,19+NOTARYPUBLIC

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