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'Mr. Benard C. Rusche,-Director ,f',. - , ,A

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.0ffice of. Nuclear Reactor. Regulation ,/ y, ( ;} 7 : 3~- '

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U. S. Nuclear. Regulatory Commission r,q*| : . / \ E ''.''

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Attention: .Mr. A. Schwencer, Chief . 'y ' s, .;gd q' *,

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,2,' f'-]/.,p;; .? ' UN "-Operating Reactors Branch #1~ '

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,,-Reference: Oconee' Nuclear Station ?:'

. - .- N'nDocket Hos. 50-269, -270, -287. ;y .g_.

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Dear Sir: -<

'Your letter dated March 1, 1977 requested additional information to support'the position thatFebruary 25,197M, certain infornation . contained in Attachment 2 to my-letter should be considered proprietary and be withheld

- fro:2 public disclosure. The attached response was provided by Babcock &_

Wilcox Company to support this request.

Very truly yours

u . "4':. t.'l , p.t

William O. Parker, Jr.

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J Ques tion o l : ' " Extent to which the 'information .is known outside the business ofthe owner'~ of the inforisation."

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oP.cannje to Oves tion 1:

The information identified ~as Proprietary in Reference ~ (2)~ is madeknown' to the..following:

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To D&V custom.crs when requi red as part of licensing activi ties.a.(Wheneve'r the information is - transmi tted to BbW cus tomers , the

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information is identi fied as BLU Proprietary.)

b. I t~ eay be made known to cus tomer agents under th'e saca condi tions.iden ti fied. i n 1.a.

.l timay. be made known to poten tial customers or thei r agents duringc.- marketing activi ties under the same condi tions identi fied in 1.a.

d. To the Nuclear Regulatory Commission during licensing activitiesunder the same condi tions identi fied in l'.a. '

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I t is not avallable in the open li terature. and to the bes t of our~

knowledge is not known by Westinghouse , Combus tion Enginee ring, General-Electric, EXXON or other potential competitors of B&W.

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- Ques tion 2: "The. extent to which i t is known by employees and others involved in.

his' business.".

. Response to Ques tion 2:,

Knowledge of ' the information is generally limi ted to those involvedin. the B&W fuel design ' effort. A limited number of Individuals inlicensing and marketing activities. have knowledge. of the information.

if A limited number of individuals engaged in fuel manufacture have~

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knovledge(of some or all of the information.

- Question 3: "The extent of measures; taken by:him to guard' the secrecy of thei n fo rma ti on."

Response to -Ques tion 3:

Wheneve r B&W transmi ts the :in formation to a cus tcmer, cus tomer's agent,. ,

potential cus tomer or regulatory agency the t rensmi ttal . reques ts the ,receipient to hold th2' in forma tion as prop rie tary. In| addition, in

, ' order to s trictly' limit any potential. or actual cus tomer's use of L pro-p rie ta ry . in forma t ion , the? folicwing provision is'. included in all'

proposals |submi tted by BSil, and an applic0bic versica o f' the >proprie tary'

, . provision is included ~in all of B?t."s ; contracts:

3; , _ " Purchaser r:ay retain Compdn/'s:Proposalf for use in : connection .wi th '. : any contract "resul ting there from, and , for _ tha t purpose , make' .such

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(copics the reof/as pay bc ' necessa ry. Any p rop re i ta ry in fo rea tion..-;. r

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concerniny Company's or its Supplie:S' products or manufacturingprocesses which is~ so-designated by Company or its Suppliers and,

.discicsed to Purchaser. incident to the performance of such Contract,

shall~ remain ' the property of Company or i ts Suppliers and'is dis-'

f closed in confidence, and Purchaser shall'not publish.or .otherwise?disclze it to o*N -c. 4 N u W 'tri tien rpp ro"al of Compext,and no rights, implied or othentise, are granted to produce or

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have perduced any products or to practice or cause to be practicedany manufacturing" processes covered thereby.

llotwithstanding the above, Purchaser may provide the flRC or any,

'other regulatory agency wi th any suc~ h proprietary in forma tion asthe llRC or such other agency may requi re; provided, however, thatPurchaser shall first give Company written notice of such proposeddisclosure.and Company shall have the right to amend such proprietaryinformation so as to make it non proprietary, in the event that -Companyicannot amend such proprietary information, Purchaser shall,prior to disclosing such information, use its best efforts to obtaina commitment f rom IIRC or such other agency to have such information

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withheld |from public inspection. Company shall be given the rightto partlcipate in pursui t of such confiden_tial treatmen t.".

-Question 4: "The:value of the information to him and his competitors."Response to -Ques t'on 4:

The;information could be used by competitors of B&V to reduce their' fuel manufacturing cos ts and Improve thei r core performance. Suchimprovements in design 'could reduce or eliminate B&W's competive' *

advantage. I t is important to note that under present marketcondi tions, a competitive edge can be gained or lost based on smallerfactors - than when the market is active. A slight competitive edgecan make the different in getting or losing the award of a contract.

3r Ques tion 5': "The-amount of effort or money expended by him in developing the~

In fo rma t i on."-

Response to Ques tion 5:

B&V'has expended a significant effort in our overall clad researchprog rams . B&W bcs been performing research on zirconium claddingsince i the -mid ' IS60's. B6W presently has additional orograms underwayto extend our knevledge on fuel -rod creep collapse. The resul ts ofthese programs 'have. contributed to improve fuel in teg ri ty ,' reduced

' material cost and increased design margins for B&W feel .

! Rues tion 6: "The- ease or di fficul ty wi th which the in formation could be properly; acquired or duplicated by others."

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i he ;infore.ation cdu.~.';: b cc:,ily nec,ui red or. duplicated by# others..

T:sinceJi t resul ts .f rom BT,W Engineering evaluations of !_ ts detailed,

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- P.50 programs. :The Engineering; evaluations start wi th -the basic, i[' ' data .and - factor -in fuel integri ty consideratio'ns , ove rall cos ts and'-'

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The ~information is not available inffuel design limitsLand margins.the form of- non proprietary reports or. papers.

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