National Fuel Gas Distribution Corporation Requests Trade Secret Protection for Quarterly Report

Strategic Insights -

The New York State Public Service Commission's Records Access Officer, Donna Giliberto, Esq., has received a request from the National Fuel Gas Distribution Corporation for trade secret protection for its Quarterly Report for the Quarter Ended June 30, 2015. The report contains sensitive information regarding the company's contractual gas purchase agreements, which, if disclosed, could cause substantial injury to the company's competitive position.

Key Takeaways:

  • The National Fuel Gas Distribution Corporation is seeking trade secret protection for its Quarterly Report for the Quarter Ended June 30, 2015, which contains sensitive information regarding the company's contractual gas purchase agreements.
  • The company argues that disclosure of this information would cause substantial, unfair economic and competitive injury due to its impact on the company's negotiating position and ongoing gas procurement program.
  • The company claims that the information is not known by others and cannot be easily obtained or duplicated by others without consent.
  • The company has developed the know-how to create the information over a significant period of time through a great deal of effort, making it valuable to the company and its competitors.
  • The company believes that the information merits trade secret protection under New York's freedom of information law (FOIL) and the Commission's Rules.
  • The Commission's regulations provide for six non-exclusive factors to be considered in determining whether information should be afforded confidential treatment, including the extent to which disclosure would cause unfair economic or competitive damage and the extent to which the information is known by others.

Statistics:

  • The company's contractual gas purchase agreements are worth a significant amount to the company and its competitors.
  • The company has developed a significant amount of know-how to create the information over a significant period of time through a great deal of effort.
  • The company's competitive position would be negatively impacted if the information were to be disclosed to others.
  • The Commission has the authority to issue orders protecting the confidentiality of trade secrets (New York Telephone Company v. Public Service Commission, 56 N.Y.2d 213, 217 (1982)).

Sources:

  • New York State Public Service Commission. (August 13, 2015). Re: Request for Trade Secret Protection pursuant to NY Public Officers Law SSSS 87(2) and 89(5) and 16 NYCRR Subpart 6-1.
  • National Fuel Gas Distribution Corporation. (August 13, 2015). Quarterly Report of National Fuel Gas Distribution Corporation for the Quarter Ended June 30, 2015.
  • New York Telephone Company v. Public Service Commission, 56 N.Y.2d 213, 217 (1982).
  • New York State Public Officers Law SSSS 87(2) and 89(5).
  • 16 NYCRR Subpart 6-1.