[ i. ' MTED COBRESM-

4- p g

// Dc,,' -*

'5LAW OFFICES .

O '

LowENSTEIN, NEWMAN, REIs, AXELRAD Sc TOLL -

05- 19102S CONN ECTICUT AVENUE, N. W.

AWASHINGTON O.C. 2OO36nossa?LowEmsTEiw h -

JACsn mEwuan _ ,,

w,smoLo F. =Eis202 861 8400pauriCE An tLano * @

!^2ItE . .'s t. September 19, 1980 y"''

J. A. SOUM as tGMT. J R.estCMAEL A. SAusta

-

3. M EGOmv SAngts

&LIENT V C ARN. Ja.'Atees t w. COTTINGM AMF.f T M LE E N A. C0 4ROT E m? M. CULPFETE R G. FLYhNwiLLiane J FnaNauwCT eve w P. F na=TaFE E DEmeC s. GRAWOOu* L A S G. G R E E NALveN a. 0UTT EResAh*

v,oG. wEu-v..........

2*":|| 7'

Mr. Sheldon 6. Wolfe, ChairmanAtomic Safety and Licensing

Board PanelU.S. Nuclear Regulatory CommissionWashington, D.C. 20555

Dr. E. Leonard CheatumRoute 3, Box 350AWatkinsville, Gerogia 30677

Mr. Gustave A. LinenbergerAtomic Safety and Licensing

Board PanelU.S. Nuclear Regulatory CommissionWashington, D.C. 20555

Re: In the Matter of Houston Lighting & PowerCompany (Allens Creek. Nuclear GeneratingStation, Unit 1) Docket No. 50-466

Gentlemen:

At the prehearing conference held in this proceeding onAugust 13,.1980, the Board directed the Applicant to submitto the Board affidavits executed by officers of the GeneralElectric Company and Brown & Root, Inc. to support the claimsof these companies that certain documents be afforded pro-tective' treatment. (Tr. 1710). See ASLB Order, pp.5-6(August 21, 1980) and Order (September 12, 1980). Applicantherein transmits the attached affidavits in compliance withthe Board's Order.

.

.

-.8009230691 gt -

, ,_, --- -. . . _ . .-

g *Lowzw;T34w, N ;wMAw. Rzzs, Ax: Leap & TcLL

|.,

September 19, 1980Page 2

i

The two affidavits-*/'

of William G. Gang (General Electric)relate to' documents'which were the subject of protective

,

orders issued by the Board on January 29, February 4, April 29, i

May 16 and June- 27, 1980, and the' affidavit of Stephen H. Grote I

(Brown & Root) relates to the document which was the subject- |

of a protective order issued by the Board on April 18, 1980.

Sincerely yours,

hRobert H. Culp

.

-*/The affidavit of William G. Gang relating to the GeneralElectric document known as the Reed Report was. executedtoday by the affiant in San Jose, California. Sincethere was insufficient time to transmit the affidavitfrom California, we are filing herein a telecopy of theexecuted affidavit. The original will be filed withthe Board in the next few days.

cc: ACNGS Service List

,

9

.--_

.~ . .

w . , - . , .

'

1, ' . .-

e rsocoaanse.osortsas' -

.q:

,, .

--

~

y^, 'UNITEDLSTATES OFLAMERICA-NUCLEAR. REGULATORY COMMISSION- ?pgg 7

'BEFORE'THE ATOMIC' SAFETY AND LICENSING BOA] Lp -

.

'

In the Matter.of' ) -b - 5~

) Lowanctcin, Newman,'Reis,

: HOUSTON LIGHTING-&. POWER COMPANY' -) Docket No. 50-gad ucu. ') N~

s'(Allens Creeki Nuclear Generating ) D' Station,-Unit 1) ) //

DOCKETED 6USNRC- -%

-SEP g9,gg p!!-AFFIDAVIT "

0# ice of the Sacretsb% Docteung a 3,,,7c,Besnch

I,-William G. Gang,-first-being sworn, depose and stateo>

follows:

1. I am Manager, BWR. Projects Licensing for General Electric

Company and have been; authorized by General Electric Company to

state - that General Electric . Company' considers information described

in Paragraph-2 of this affidavit as proprietary information; that is,

trade' secrets and commercial or financial information which should

be keptL privileged. or confidential pursuant :to 5 U.S.C. S 552b (c) (4) .

2. / General Electric Company has produced various proprietary!

documents to . Intervenor John F.. Doherty for- his inspection and

copying. . . General Electric Company . believes that certain parts of'

~

these documents relate to or contain information which is of a >

confidentialior' a proprietary nature, the release or disclosure of'

; which s tolthird parties ' could . seriously . impair ~ General Electric-

JCompany's; relationships withfits competito'rs. These documents were:

fa. NEDE121175-P,."BWR/6 Fuel. Assembly Evaluation of

. - [ Combine'd Safety Shutdown Earthquake and LOCA'

; Loadings."- q

'!.

-

, 4

'

1 ' - 7 sct2.e > ' cc 2: _

_ -21 _ >. _ _

.

m - --.. m. _ ._._m.u. - .--- -g; _ , ,- _ .

x-

'

s- :.,:

,

4'

'

-2-

. b . .. NEDO 21078-P, " Test .Results Employed by General

Electric Company for BWR Containment and Vertical

Vent Loads."

c. NEDO'20948-P,."BWR/6 Fuel Design."

d.- " Core-Power: Distribution Study (p roprietary ) . "

e.- " Assessment of .BWR Mitigation of ATWS .(NUREG-0460

Alternate No. 3) May, 1979."

f. -Allens Creek-Nuclear-Generating Station Preliminary

Safety Analysis-Report, Table-4.2-18, " Fuel Rods

[.Stress Design Limits."

E g. . General Electric Company Report 22A4365, " Interim

Containment-Loads Report--Mark III Containment

(revision.to)."

h. NEDE 21606-P, " Mark III 130 Area Scale Submerged

Structure Tests."

3. In. desigating material as proprietary, General Electric

utilizes the definition of proprietary .information and trade secrets

cet forth in the American Law Institute's Restatement of Torts,

Section(757. 'This' definition provides:'

LA trade secret may consist of any; formula,pattern,: device or compilation of informationwhich isinsed in one's busine'ss and which~ gives him an. opportunity to obtain an ''

' advantage over:. competitors who do not knowor use'it.. ...o. A~ substantial element'of-

secrecy must exist, so .that, except by; theuse_ of improper means,- there would be diffi-culty,in acquiring information:. . Some. . .

' . factors.to be considered in~ determining

H;

'I

|'

~ .

n..

.,.

{I ~' '

,7 ,- .[j

x-- -

,s- - --

, __- w1-

.

,

W-

.

.

Y~

_3_

whetheri given _information -is one's tradesecret.are: . (1) .the extent to which theinformation 'is known outside of-his business;(2) the extent to which it. is known LJemployees and.others involved in his business;(3) the extent of measures taken by_him toguard the secrecy- of the information;~. (4)the value of the information.to him and tohis competitors; (5) 'the amount of effortor money expended by him in developing theinformation; and (6) the ease or difficulty..

with which :the information could be properlyacquired or duplicated by others."

.

4. Some examples of categories of information which fit into

the definition ~of proprietary information are:

; a. Information that discloses a process, method

or apparatus where- prevention- of its use by,

4 - General Electric's competitors without licenseJ

. from General Electric constitutes a competitive

economic-advantage over other companies;

b.- Information consisting of supporting data and

: analyses, including tests data, relative to a,

process,J method or apparatus, the application of

which provide a competitive economic advantage,

e.g. , by optimization or improved marketability.

c.. Information which if used by a competitor, would'

c reduce' his expenditure of resources or improve his:

' competitive position in-.the design, manufacture,

: shipment, installation, assurance'of quality or

licensing _ofLa similar product;-

,

=~

'

__ :a. . . . - . . . r a.. .. - -~ -_

.

no ,-

*.

,,

_4

.d. Information which . reveals cost or price

information, pro' duction | capabilities, budget

levels or commercial strategies of General

Electric,- its ' customers or- suppliers ;

e. Information which' reveals aspects of past,present or future. General Electric customer-

funded development plans and programs of

potential commercial value to General Electric.

f. Information which discloses patentable subject.

matter for which it may be desirable to obtain

patent protecticn;

g. Information which General Electric must treatas proprietary according to agreements withother parties.

5. Within General Electric Company, access to documents

containing proprietary. information, including the above-listed

documents is limited on a "need to know" basis and such documents,

including these reports, are clearly identified as proprietary. ,

6. These documents, to the best of my knowledge and belief,

have monsistently been. held in confidence by General Electric. Noipublic disclosure has been made ~ and they are not 'available in |

public sources. . Disclosure of the contents of these documents

outside of General Electric Company has -been limited to'specifically-required instances.-

_

-1i

<

i

. m - _ . _ _

i _. .y-e .

.%-5-1

7. . These documents have been evaluated in accordance with

the criteria listed above and have been found to contain information

which .is proprietary and which is . customarily held in confidence.

byj General Electric.

8.: Public disclosure of the information sought to -be withheld

is likely to cause substantial harm to the competitive position of-

General Electric Company and de'prive or reduce the availability of

profit-making opportunities because disclosure could enable competitors

to obtain a better understanding of our product concerns and programs

and utilize this -information so as to adversely impact General Electric

sales.

a- )William fa. Gadg

,

Subscribed and sworn to before me this /[ day of September,

'1980.

OYF CIAL EAL ab. KAREN 5.' VOCELHUBER / / Notary Public g

'gNOTARY PU8uC-CAUFORNIA

SANTA CLARA COUNTY .

. My Commission Empires Dec. 5,1980

ooooooooooooooooooooos

,

o

b %'

,

p--

.i El DOC WA W ,-

'SEP 19 W > @UNITED STATES OF AMERICA -

NUCLEAR REGULATORY COMMISSION Ib p%Offet tA tw facrets"

<

-

THE ATOMIC SAFETY AND LICENSING BOARD,

>3 c)In t.he Matter of

HOUSTON LIGHTING & POWER CO.Docket No. 50-466

'illens Creek NuclearGenerating Station, Unit 1)

AFFIDAVIT

STATE OF TEXAS X

X

COUNTY OF HARRIS X

I, Stephen H. Grote, first being sworn, depose and

state as follows:

1. I am Senior Vice President of the Power Division

for Brown & Root, Inc. and have been authorized by Brown &

Root, Inc. to state that Brown & Root, Inc. considers infor-

mation described in Paragraph 2 of this Affidavit as pro-

prietary information; that is trade secrets and commercial

or financial information which should be kept privileged or

confidential pursuant to 5 U.S.C. S552b (c) (4) .

2. Brown & Root, Inc. has produced various proprie-

tary documents to Intervenor, TexPirg for

its inspection and copying. Brown & Root, Inc. believes

that cert in parts of these documents relate to or contain

information which is of a confidential or a proprietary

nature, the release or disclosure of which to third parties.

y,- --

,

,

' '

.' -

.

'

,'.s

,,

could seriouslyLimpair Brown &. Root,.Inc.''s relationships

'

. ith iits competitors. : These documents were:w

.

^

a. -South Texas. Nuclear. Project Quality

Assurance'and Quality Control, Management

AssessmentESurvey'for Brown 1& Root, Inc.

(January 1980) .

5.- Within Brown & Root, Inc., access to documents

containing proprietary information, including the above

listed documentsLis limited on a "need to know" basis and

such documents, including this report, are clearly iden-

tified~as proprietary.

6. These-documents, to the best of my knowledge and

belief, have consistently been held'in confidence by Erown &

Root,. Inc.. No public' disclosure'has.been made and they are

not available|in public sources. Disclosure of the contents

of these documents outside of Brown & Root, Inc. has been

limited to specifically required instances.

7. Public disclosure'of the information sought to

:be' withheld will cause substantial harm to the individuals

who provided information~for the preparation of their report.

The lndividuals who were interviewed for the preparation of

3

.

-2-

..''!'. . .''

_r

& s . _ ,

'*

-

m,7.gI-

T

J- '

. .1

''

' z' i.

-r

.-the report were promised complete confidentiality and-

"

;, -secrecy and their cooperation-.would be severely compro-

'mised in future perfo,nnance 'of their duties. The release.

of the contents of the report sought to:be protected

would be in violation of the agreement by which the infor-

- mation collected for the report was obtained.

/ in'_1 6,f J .. J |eLif/Y

-

/ , ..

nrSTEPHEN' H. GROTESenior Vice President ofPower' Division-

SUBSCRIBED AND SWORN TO before me this // ay of

f>yAwf|n > 19EO,

f dYAf$$NOTARY PllBLIC

'My mmission. ExpiressL / // , 19&n

|T (

,

i

-3- |'

_

%'

'

.. ,

' - #- -_____...__.m _. _

'- + s

.7. ., ~,

,

i UNITE STATES 02 AltERICA'"-

WCLEAR REGUIATORY C010 TIS $105 W " 9" 4 g g etes.

] ,l ''

: .t . ..;... ..

-

'

,

.BEFORE TE ATONIC SAFETY AND LICH5IE BOARDm. - s

*..

.' .:-.;

In the' Matter of. . )7 q .)

--7:-,

500STOR LIGHTIM & POWER COMPANY ) ' Docket k 50-466.

. ' . .7 ;) .'

, ,

(Allens Creek helear Generating ) a-

station, Unit 1) )._

y,

,% wmo. .

**

% . . : .t'SNC . i,' ' , ' Q .SEP[g g gy [g;

'

D^ ''

APPIDAVIT . *h -

'

.z: s~.

'

. . . . . .

'

I, William G. Gang, first being svorn~, depose .and state;at''

,_j, 't'': .s. '

followsf f--

cl. / i am Mansi er, BWR Projects Licensing for (,eneral Electric3

capany and'have been'.authorised by General Electric . Company:to'

~

'~'

'

.. . '. : .... .

'

.

state that' General Electric Company considers information described. .

. in' Paragraph 2 'of this affidavit as' proprietary informationt that is,

, . trade secrets and comercial or' financial information which should~

,

'

be~tept pr'ivileged or ' confidential pursuant to 5 U.S'.C. I 552b'(c)(4).

2, Generil Electric ' Company has produced matedal.conta$ned in. .; . e

or reihted to Neneral' Blectric's Nuclear Reactor' Study on'.the. subject

of GE s-561115g Watir hacer Nuclear Steam Supply System which had

beenjreparAh under the'' direction and supervision.of.Dr. Giarles hed

in 1975.;(fthe ' nee 6 hporP) to Intervenor' John F.' DONrty foh his'Isi e...

.. . . . + . .,a.. -*. . .

inspection. The need kport was the product of a study conductid at?. ?

~

l'. . .'.. .

the regnest of the Chairaan of the. Board of General Niectric Cospany-, .- n.

,

. __, _

,

by a task ,Soros' dsired by Dr? diarles E{ Reed, Senid Vice President,

",-

. ,y, ,,,

!!or Corporate Strategic' Planning and Studies,' General Elastric Company.~

.u;; ., ,, . -

1.

This hihiy telfinical stsdy had the objective of determining the' buic l

n... 3a , ..z, 1 *, ,

i

, .- - - - .

,.

'

.. . 3. - p+ i. ;, r . .

. ... .

'''

Io .. . ..

requirmients for continuing impronment in the availability and. . . . . . . 4 . . . - . . ..

'<

capability of nuclear, plants annufactured by General Electric. Se-

i . .. ... . ' . - 1. .!." .''

principal purpose of. the study was :to provide a basis for'. assessing the |' o-

.,

.

?_lew1 of corporate resources--including engineering and denlopment.

' |-|

facilities,' technical pe~rsonnel and financial support--required to'

enable GenerI1 Electric's product to achieve tednical'and cospetitini~

'

.

<<

;, ,.

, . . . .

Lsuccess. In additiod, the task force.made neerous recommendations| _. T'.

! intended to isprove the availability of nuclear plants manufactured!

. ..

** t . .

by General 51,ectric. .hase recessendations dealt with owrall design,4..

considerations, as well as with speellic components andhrvices.

Recommendations were nede concerning development and tesi fa.cilitiis,. |~

,

nanagcment and organization. Se ked kport candidly discusses |

opportmities for impronment in General Electric's product line |.

and organisation;and recomends steps to strengthen General Electric's.

a=petitin position. General Electric cospany bellows that this

docaent relates to or contains information whid.is of a confidential I'

,-

. or a proprietary nature, the releare~ or disclosure of which to third i*

-

.

parties' could serionely ispair General Electric Company's relation-,

. ships with its competitors..

..

In Esignating' anterial as proprietary, General Electric~

13.

~ utilises the definition of proprietary information and trade secrets 1

~

set forth. in the American Law Institute's Restatement of Tbir.s,i;

section 757.Etis definition provides:p

j ~ ..' '

e

I

|-.-

'

!- , .

es

.M -, ,

w

&

%,,,. .ii,#' NV'? - | MAGE EVALUATION Y

TEST TARGET (MT-3)

1.0 |# E8 DM

- 1 |E8 IIE|

!'EEI.1 - _ .,g

_

l.25 I l.4 | 1.6|__ i_

,

,4 6"

MICROCOPY RESOLUTION TEST CHART

-

.

f> '>>/ 4h

#k [%Q. d#4

t&g{2,,III$7- -

'* W. .k x?0$|

''

. aa g _ A g.,

A

2

+++ .'A,>, eEEv <e.1,em

TEST TARGET (MT-3)

1.0 ' In EMdg a gnm m-

I.| I '* M'"

.8;;;

l.25 I l.4 1.6|

< e >

MICROCOPY RESOLUTION TEST CHART_

of % 4 sp

%,k;*cggi,,;;>ww- ~-

__w = = - -

. - _ _ _ - __ _ _ _ - _ _ _ - _ _

Q ,- -

yym o .

'hw q. w . -.

#

.

A trade secret may consist of any formula,pattern, device or compilation of informationdid is used in coe's bainess and did

,

gives him an opportunity to obtain anadvantage over competitors who do not know

or use it . . . . A substantial element'ofi

secrecy must exist, so that, except by theuse of igroper means, there would be diffi-culty in acquiring |information . . . . Some'

3

factors to be considered in determining_

whether given information is one's' tradeA secret ares (1) the extent to which the'

information is known ^outside of'his business;(2) the extent to which it is known by,

,

esployees and others involved in his business;(3) the extent of asasures taken by him to

. guard the secrecy of the informations (4).the value of the information to him and tohis competitors; (5) the amount of effort

'

or money expended by him in developing theinformations and (6) the ease or difficulty'

with which the information could be properlyacquired or duplicated by others."

-*

4..

Some examples of categories of information which fit into

the definition of proprietary information are:

Information that discleses a process, methodi a.

or apparatus where prevention of its use by

General Electric's competitors without license '

from General 1:lectric constitutes a competitivei

~ *

econcale advantage over other companies;

b. Information consisting ~of supporting data and,

analyses, including tests data, relative to a.

~

, process, method or apparatus, the application of-

which provide a competitive' economic advantage,.

e.g., by optimisation or igroved marketability..-

. . - _ .:, -

+

,. , - __ . - - _ _ _ . - - _ _ _ _ _ _ _ _ _ _ _ _ _ . -

- e .Jr . ,, .. .. .

.,. . . ' .

*

4.ht[,[. $ ,j[' i *[ h,'" I,h ' ) ,..t.~a , r5,:',. #|!~'.,[ -;f. ' [ r.fa;' , , ' " E f.1 . '., ' , ' } \ j , ; } ,

' ' ' '; :' '#

.l } .f, 'fs',:j/,N ,'//, {. ' (,. .$ i ,i; 4:

t 4. .- :,

gQ;W. S_

,W. ". .. ..- -

. ' .'w&. .; ., . , u.,' ; .c y 'r

Q,, .-

. - . , ..

. m a. .' '. | Di.. sL...L, ;.: . '3

x s "~

:q,. tr.'' ..y 4 ; .,vy, . v3 3 _ .;

.

.

_,, .

- >c,. -> g.pi dtionihich if used by a competitor, would_.

h--

..,,.c :c. a, . .. +.. .,

.'

.h. . / ';. seduce fils~ expenditure of resources ~ or improve hisy a .. w. e r..

3" competitive position in the enign,'nanufacture,, . .

'' J,_

~

. -

,

c ;, .- n.,

| ' ) { .. - " .'' shipment, installation, assurance 'of qualidy 'or-.

"

,

s, :... -.

''

N ' : lice 5 sing ~of.a'slailir productp'

. ,..'

, .; ...

, ,!. ,.,

.,

i d. . Inforsati$n which reveals cost ~ or hricei* '

0 '-

- .,.

s. t

.r. 'i . , . ,. - '. . . ,

,. ,.

"( ' . ' information, production, capabilities', budget.'..,..a .,

. .,*

. , , .

' ' levels or commersini strategies of Generall-

'

.c . n .+ . ,

'

. ,

R '' 'illect'ric, its' customers or suppliers;e'

s-

,

.,. .

, ,.,

'", ..e. . Information which reveals aspects of past',-",

.. .

. . . .- ,

.. . . . .,

, 5. . . , - present or futura General. Electric customer-''

..

.<

,$ funded. development plans'and programs of ~ |'

. .

n. -

L3- ,

. . . -- |'

potentiil commercial value to General Electcic..

o

i f.: hformation which discloses patentable subject',

, . . . '

$. . . ' matter for whis it may be desirable 'to obtain-'

... . . -

,

Y. P&tentprotectioni' '-

,

v-, . . . ,: ,

, .c .

InformationwhichGeneralElectricmusttreat..

,

.

' , . . g.'i--.

- .(i> c, ; -, ,,

f,; ', :7 . ., as proprietary according to agreements with'

, , . ; ; .. r + ; a.. , .,

'

-

.,

i $,( . I p. .t jottier parties..

* '' '

,

.

'

.~ 5.' W. .' s.N::Within'. General'Ilectric Company,' access to documents' '

.. ~ . . .;i: .. .,

''. +

, ' >-

.

,.

. ..s ; . , . .

-

' ., , .+ ,

.

. . , . . .

'#-containingproprietaryinformationjincluding..the above documen't,

+ -. . . . s :.

.. .. .

'

'is 11 sited W,.a '.need to know" basis and such documents, including(-

. . + , .--

.- --

. .s . . . . .c,x.. :>..,.

.- '

"[.' ..Lthe need ashrt, .co clearly iden'tified as. proprietary..

,

, .. t;.:.

,,..,.

,. . , .* 'i * 'g | . '. o

* a *-';.

~4 ,

4* ,1, -

'.,#.,4 - *

, b, '

' ,"jy N f,P ' ;. ; , ;,. .,

.:, , , . .7-

'-

, ,, . s. t,

.

Ie

~ _ - _. _ ,. . - - - ....,.,_....._m.. ._,, _,_......_..s..-,,.- . , , . . ~ . , . , , . .-

'.

4

_ | 6- ' ' ;'=5-:,

S

J= 6.The ked kport, to the'best of my knowledge and belief,

has ' nsistently been held in confidence by Gmeral Electric.mNo l

public disclosure has hen made and it is not available in public!

socroes. Disclosure of its contents'outside of General Electric has.

'

.-_. _. . been linited to specifically required instances.

' 7.We Reed Report has been evaluated in.accordance with

~the criteS'a~11Nted above and have been found to contah infomaticawhi.& is proprietary and which is customarily held'in confidenm

.by General Electric. .

.

8.Public disclosure of the inforration sought to be withheld

is. likely to cause substantial harm to the competitive position of

General Electric Coapany and deprive or reduce the availability of

ifit-making opportunities because disclosure could enable competitors3

to obtain a better understanding of our product concerns and programs

and utilize this information so as to adversely inpact General Electric,

sales. i

1

|

^

Williat G.' G8Dg

Subscribed and sworn to before se this / f day of September,1980.

secoememomeconomeesec0FFICLAL SEAL -

' 9wr usogeA _ -

/f notary relac 7smascomu miemon.s,sso_ '

rrh-- -

a.e c+:+:+:- -- - -"

,,

.t . .. ,