ML13308A618

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Forwards Amend 12 to Indemnity Agreement B-31,per 10CFR140 Changes,Re Increase from $140 Million to $160 Million, Effective 790501.Supporting Documentation Encl
ML13308A618
Person / Time
Site: San Onofre Southern California Edison icon.png
Issue date: 05/01/1979
From: Saltzman J
Office of Nuclear Reactor Regulation
To: Hughes W
Southern California Edison Co
References
NUDOCS 7905160314
Download: ML13308A618 (6)


Text

Spa REG(

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 Docket No. 50-206 Southern California Edison 3

Company and San Diego Gas and Electric Co.

ATTN:

Mr. William G. Hughes, Jr.

Manager of Insurance P. 0. Box 800 Rosemead, California 91770 Gentlemen:

We are enclosing herewith an amendment to your indemnity agreement reflecting the changes to 10 CFR Part 140, "Financial Protection Require ments and Indemnity Agreements," effective May 1, 1979. The amendments to Part 140, a copy of which is also enclosed, give effect to the increase from $140 million to $160 million in the primary layer of nuclear energy liability insurance provided by the American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters.

We would appreciate your indicating acceptance of the amendment to your indemnity agreement in the space provided and returning one signed copy.

If you have any questions about the foregoing, please contact us.

Sincerely, erome Saltzman, Chief Antitrust & Indemnit Group Office of Nuclear actor Regulation

Enclosures:

1. Amendment to Indemnity Agreement
2. Amendment to 10 CFR Part 140 79051603/1

Docket No. 50-206 AMENDMENT TO INDEMNITY AGREEMENT NO. B-31 AMENDMENT NO.

12 Effective May 1, 1979, Indemnity Agreement No. B-31, between Southern California Edison Company and San Diego Gas and Electric Company, and the Atomic Energy Commission, dated June 3, 1966,. as amended, is hereby further amended as follows:

The amount "$140,000,000" is deleted wherever it appears and the amount "$160,000,000" is substituted therefor.

The amount."$108,500,000", is deleted wherever it appears and the amount "$124,000,000". is substituted therefor.

The amount "$31,500,000" is deleted wherever it appears and the amount "$36,000 000" is substituted therefor.

Item 2a of the Attachment to the indemnity agreement is deleted in its entirety and the following substituted therefor:.

Item 2 - Amount of financial protection

a. $1,000,000 (From 12:01 a.m., June 3, 1966, to 12 midnight, March 26, 1967, inclusive)

$74,000,000 (From 12:01 a.m., March 27, 1967, to 12 midnight, January 31, 1969, inclusive)

$82,000,000 (From 12:01 a.m., February 1, 1969, to 12 midnight, February,29, 1972, inclusive)

$95,000,000 (From 12:01 a.m., March 1, 1972, to 12 midnight, February 28, 1974, inclusive) o u DATE

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$110,000,000 (From 12:01 a.m., March 1, 1974, to 12 midnight, March 20, 1975, inclusive)

$125,000,000 (From 12:01 a.m., March 21, 1975, to 12 midnight, April 30, 1977, inclusive).

$140,000,000 (From 12:01 a. m., May 1, 1977, to 12 midnight, April 30, 1979, inclusive)

$160,000,000 (From 12:01 a.m., May 1, 1979)

FOR THE. UNITED STATES NUCLEAR REGULATORY COMMISSION

/sL JEROME SALTZMAN Jerome Saltzman, Chief Antitrust & Indemnity Group Office of Nuclear Reactor Regulation Accepted 1979 Distribution.

Licensee (3)

Docket Files LPDR' By_

NRC PDR SOUTHERN CALIFORNIA EDISON COMPANY AIG FILES AIG Reading:.

IDinitz reading Accepted 1979 OELD Desk By SAN DIEGO GAS AND ELECTRIC COMPANY

  • and, as of August 1, 977, the amount available as secondary financial protection.

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20832 Federal -*

ter / Vol. 44, No. 68 / Friday, April 8, 1979 / R0and Regulations This document has been reviewed in liability claims resulting from a nuclear and sections 552 and 553 of Title 5 of the accordance with FmHA Instruction incident. Section 170 of the Act, requires United States Code, the following 1901-G, "Environmental Impact the Nuclear Regulatory Commission to amendments to Title 10, Chapter 1, Part Statements." It is the determination of indemnify the licensee and other 140, Code of Federal Regulations, are FmHA that this action does not persons indemnified, up to the statutory published as a document subject to constitute amajor Federal action limitation on liability, against public codification.

significantly affecting the quality of the liability claims in excess of the amount human environment and in accordance of financial protection required.

1140.11

[Amended]

with.the National Environmental Policy Subsection 170b. of the Act requires that

1. Section 140.11(a)(4) is amended by of 1969, Pub. L 91-190, an for facilities designed for producing deleting "$140,000,000" and substituting Environmental Impact Statement is not substantial amounts of electricity and therefor "$160,000,000."

required.

having a rated capacity of 100 electrical Authorities: (42 U.S.C. 1480 delegation of megawatts or more, the amount of 1 140.13a

[Amended]

authority by the Secretary of Agriculture financial protection required shall be

2. Section 140.13a(a) is amended by CFR 2.23: delegation of authority by the the maximum amount available from Assistant Secretary for Rural Development,7 private sources. For other licensees, the deleting theer "$10,000,000.

CFR 2.70)

Commission may require lesser amounts Dated: March 30,1979; of financial protection. Primary financial 740.91

[Amended]

Gon protection may be in the form of private

3. In 1140.91, Appendix A, Condition Adisator. Famers HomeAdetm insurance, private contractual indemnities, self-insurance or other 4 is amended by revising the footnote to (FD'HA ituhowon 44.5) proof of financial responsibility, or read as follows: "For policies issued by IPR Doc. 790581 Filed 4-796 am) combination of such measures.

Nuclear Energy Lability-Prperty BLUJNG COE 3410-07-4 The insurers who provide the nuclear Insurance Association the amount will liability insurance, American Nuclear be "$124,000,000"; for policies issued by Insurers (AM) and Mutual Atomic Mutual Atomic Energy liability NUCLEAR REGULATORY Energy liability Underwriters (MAELU),

Underwriters, the amount will be COMMISSION have advised the Commission that

"$36,000,000."

10 CFR Part 140 effective January 9 1979, the maximum

4. In § 140.91, Appendix paragraph amount of primary nuclear energy III of the "Optional Amendatory Financial Protection Requirements and liability insurance available was Endorsement" is amended by revising Indemnity Agreements; Miscellaneous increased from $140 million to $160 the footnote to read as follows:

Amendments million. Pursuant to the provisions of "For policies issued by Nuclear Energy subsection 170b.* of the Act. tht amount Liability-Property Insurance Association AGENCY: U.S. Nuclear Regulatory of primary financial protection required Commission.

for facilities having a rated capacity of ACTION* Final Rule.

100 electrical megawatts or more will be policies issued by Mutual Atomic increased to $160 million, effective May Energy Liability Underwriters the SUMMARr: The provisions of Section 170 1, 1979. In addition, in compliance with amount will be "$36,000,000."

of the Atomic Energy Act of 1954, as 10 CFR Part.140, those persona licensed

§ 140.92 [Amended]

amended, require production and to possess plutonium in the amount of 5 utilization facility licensees to have and kilograms or more and persons licensed maintain financial protection to cover to process plutonium in the amount of 1 11 paragraph 8(a), is amended by public liability claims resulting from a kilogram or more for use in plutonium deleting the amount "$108,500,000" nuclear incident.

processing and fuel fabrication plants wherever it appears and substituting The Nuclear Regulatory Commission will also be required to provide financial therefor "$124,000,000."

is amending its regulations to increase protection in the amount of $160 million.

6. Section 140.92, Appendix B, Article the level of the primary layer of Since the amendments set out below 11, paragraph 8(b), is amended by financial protection required of certain conform the Commission's regulations to deleting the amount "31,50,000 indemnified licensees. The Commission a statutory requirement, the Commission wherever it appears and substituting is amending its regulations at the has found that good cause exists for therefor "$36,000,000."

present time to coincide, as statutorily omitting a value/impact analysis, public

7. Section 140.92, Appendix B, Article required, with the increase in the level notice of proposed rule making and
11. paragraph 8(c), is amended by of the primary layer of insurance public procedure thereon as provided by private nuclear liability unnecessary.

insurance pools.

Pursuant to the Atomic Energy Act of

'$60,000,000.

EFFECTIVE.

Section 140.92, Appendix B, Article FORFCTVER DATE:MAyIO CO, I A eraiainAto 194, as amended, the Enr'm paragraph 4(b)(2), is amended by FOR FURTgER INFORMATION CONTACTto Mr. Ira Dinitz, Antitrust and Indemnity

'The Act does not by its precise language require Group, U.S. Nuclear Regulatory maintenance of a "Primary" (i.e.. nuclear Commission, Washington. DC 20555.

insurance) layer and a 'secondary' (i.e.,

140.93 [Amended)

(Phone: 301-492-8336).

retrospective premium) layer of financial protection

9. Section 140.93, Appendix C. Article but merely considers the combination of these two

.pagrh8,iamnebycnig SUPPLEMENTARY INFORMATION: The layers as financial protection. However, 10 CFR 1

to 8isa nebyhgn provisions of Section 170 of the Atomic Part 140. of the Commissions regulations that Energy Act of 1954, as amended. (the implement the Act, distinguishes between the

10. Section 140.93, Appendix C, Article Act) require production and utilization primary and secondar layers of financial facilityprotection.

The amendments in this rule relate III, paragraph 4(b)(2), is amended by solely to increases in the primary layer of financial changing "$140,000, to financial protection to cover public protection.

p e160,rooorO."

Federal Regist Vol. 44, No. 68 / Friday, April 0. 1979 / Rules an egulations 20633

§ 140.94 (Amended]

FEDERAL DEPOSIT INSURANCE Since the changes are procedural in

11. Section 140.94. Appendix D, Article CORPORATION nature or necessitated by statutory II, paragraph 6, is amended by changing amendment, the Board of Directors of

"$140,000.000" to 12 CFR Parts 307 and 327 the Federal DePOSit Insurance toAssumption and Assessment of Corporation has determined, under

§ 140.95

[Amended]

Deposit Labilties of Insured Banks; Section 302.6 of its rules and regulations

12. Section 140.95. Appendix E, Article Voluntary Termination o'ance (12 CFR § 302.6), that notice of. and IH. paragraph 4(b)(2), is amended by Status public participation in, this rulemaking changing "$140,000,000" to AGENCY: Federal Deposit Insurance is unnecessary and that good cause

"$160,000,000.exists for the waiver of the 30-day

"$ia~oooooo.

Cororaton.deferral of the effective date for the

§ 140.107 [Amended]

ACTION: Final rule.

changes.

P Th FeeralDepsitAccordingly, 1Z CFR 307.3 and 327.2

13. Section 140.107, Appendix G,

SUMMARY

subparagraph (I are changed as Article II, paragraph 6(a), is amended by Insurance Corporation has decided to folows:

deleting the amount "$108,500,000" revise and amend § j 307.3 and wherever it appears and substituting 327.2(b)(3) of its regulations to: (1)

PART 307-VOLUNTARY therefor "$124,000,000."

implement Sections 304 and 310 of the TERMINATION OF INSURANCE

14. Section 140.107, Appendix G, Financial Institutions Regulatory and ATUS ArticlepInterest Rate Control Act of 1978 Artcl II pragap 6(),is mededby (FIRICA) which pertain to the
1. 12 CFR 307.3 is revised to read:

deleting the amount "$31,500,000" deletng th amout 1.50,000assumption and assessment of deposit

§303Seto'*aenndrcdso wherever it appears and substituting liabilities of insured banks, and (2) 3 Ste toroaen wder th,erefor "$36,000,000."

b unse h

oprto hr theefr "36Ooo00.'correct an inaccurate reference.

deposits ar assumed by another Insured

15. Section 140.107, Appendix G, Article III. paragraph 6(c), is amended EFFECTIVE DATE: April 6, 1979.

bank.

by changing the amount "$140,000,000" FOR FURTHER INFORMATION CONTACr (a) Whenever te deposit liabilities of to 160000,000."

Jerry L Langley Senior Attorney, an insured bank are assumd by another Federal Deposit Insurance Corporation, insured bank, whetther by merger,

16. Section 140.107, Appendix G, 5

consolidation, or other statutory Article III, paragraph 4(b), is amended spn or by cotat the by changing the amount "$140,000,000" 2ot29, tlpo (202l 3947 as toSUPPLEMENTARY INFORMATION: Section

o60,ti0 0nk 0 "h e

otic of the to "$160,000,000."

304 of FERJRCA amends Section 8(q) of supint h

epstr ftebn

§ 140.108 [Amended]

the Federal Deposit Insurance Act (

whose deposits are assumed within 30 Act)to~rovde hatwheeve th days after the assumption takes effect.9

17. Section 140.108, Appendix G, A

poide tha wnever th e

Such notice shall be (1) mailed to each Article II, paragraph 6, is amended by de bi an insured bak depositor at the depositor's last address changing the amount "$140,000,000" to assumed by anoter cnsuredan, of record as shown upon the books of "3160,000,000."whther by

erger, onidtino the bank, (2) published in not less than
18. Section 140.108, Appendix H, contract: (1) the insured status of the two issues of a local newspaper of Article m. paragraph 4(b), is amended bank whose deposits are assumed shall general circulation, and (3)L in form by changing the amount "$140,000,000" terminate on the date the Corporation substantially as follows:

to "$160,000,000."

receives satisfactory evidence of the (Date)

EFFECTIVENotice to Depositors:

EFFETIV OAE Te foegong ssuptio: () te sparae isurnce Please be advised that the deposit amendments become effective on May 1, of all insured deposits so assumed shall liabilities shown on the books of (Name of 1979.

terminate six months after the date the Asumed Bank)

(City or town)

(Secs. 161, Pub. L 83-703, 8o Stat. 948 (42 assumption takes effect or, in the case of (state) as of close of U.S.C. 261, any time deposit, the eariest maturity business on

- have been U.SC. 201; Sc.170 Pu. L 8-25. 7 Stt.

date after the six-month period; and (3) assumed by the undersigned bank. The 576, Pub. L.94-197, 89 Stat. 1111 (42 U.S.C.

2210); Sec. 201,P L. 933as

aed, 88 the continuing bank shall give notice of insured status of (Name of assumed bank) 2;St. 271, uta.

41 (48

a. 5841))

, 8 the assumption to the depositors of the Will terminate at the-time provided in section Stat.1242 89 whose dpi are assumed 8(q of the Federal Deposit Insurance Act.

Dated at Washington, D.C., this 2nd day of b

wo aftre assumo The separate inurance of it deposits will Aprildays therefore terminate at the end of six months Apri 1979.

rReuaor oumsin takes effect Section 307.3 has been from the above date or, in the case of a time Forrevised to implement these provisions deposit the earliest aturity date after the sam

j.

k and to correct an incorrect citation by six-month period.

Secretry of the Commission changing the reference '1304.3 (a) and You are advised that the undersigned bank (FR Doc. 79-IO83 Filed 79 8:45 aml (t)" in Section 307.3(b) to "§ 304.3 (u) is an insured bank and that your deposits will BILN OE7919and (v)".

continue to be insurec'. by the Federal Deposit 12Insurance Crporatio in the manner and to Section 310 of FIIRICA amends the extent provided in said Act.

Section 7 of the FDI Act to exclude (Name of Bank) deposits accumulated for the repayment (Address) of personal loans from the definition of There may be included in such notice deposits for insurance assessment any additional information or advice the purposes. Section 327.2(b)(3) of FDIC's bank may deem desirable.

regulations has been amended to aline its definition of the term "deposit" for

'Me notice requirement does not apply to assessment purposes with that of

'phantom bank mergers as defined in footnote 2 Section 310 of FIRIRCA.

of Section 303.th(ae(9).

Federal Register ol. 44, No. 80 / Tuesday. April 24. 190 Rules and Regulations 24045 NUCLEAR REGULATORY Appendix B identifies those Requests for the sale of motor gasoline would COMMISSION for Interpretation which have been constitute the imposition of a more stringent dismissed during the same period, credit term than the credit terms in effect on 10 CR Prt 40 FR FRTHR INORMTIO CONACT N-ay 15. 1973. in violation of § 210.62(a).

10The eneral Allocation and Price Rules, set FinancialDiane Stubbs. Office of eneral forth at 10 CFR Part 210 and adopted on Finncil Potetin Rquiemets nd Counsel. Department of Energy, 12th &

January 14. 1974. 39 FR 1924 (January 15, Indemnity Agreements; MisceHaneous Pennsylvania Avenue NW., Room 1121, 1974). were intended to set forth the Amendments Washington, D.C. 20461 (202) 633-9070.

provisions applicable to both the Mandatory Correction SUPPLEMENTARY INFORMATION:

Petroleum Allocation Regulations (10 CFR Intepreatins ssue pusuat t 10 Part 211) and the Mandatory Petroleum Price In FR Doc. 79-10853, appearing at ItrPrtins Supruant tol10 Regulations (10 CFR Part 212). The allocation page 20632. in the issue of Friday, Apriland price regulations were adopted to 6, 1979, on page 2063, make the in the Federal Register in accordance implement the statutory mandate of Section following corrections:

with the editorial and classification 4(a) of the Emergency Petroleum Allocation folloIng corfretctolun argap 5

criteria set forth in 42 FR 7923 (February Act of 1973 (EPAA). as amended, Pub. L No.

(1)8, 1977) as modified in 42 FR 46270 93-159 (November 27,1973.

in the second line, correct "Article III" to (September 15,1977).

Section 210.62(a) regulates credit terms as a read "Article 11".

These function of price in recognition of the varying (2) In paragraph 17, in the first line, I

roles that credit and other conditions of sale authortty on the accuracy of the factual play in the flow of product. 2Section 210.62(a I correct "Appendix G" to read statement used as a basis for the provides in relevant part:

"Appendix H".

Interpretation (10 CFR 205.84(a)(2)) and "Suppliers will deal with purchasers cf an BILUNG CODE 150s-01-M may be rescinded or modified at any allocated product according to normal time (§ 205.85(d)). Only the persons to business practices in effect during the base whom Interpretations are addressed and period specified in Part 211 for that allocated DEATETO NRYother persons upon whom product, and no supplier may modify any DEPARTMENTnormal business practice so as to result in the Interpretations are served age entitled to circumvention of any provision of this 10 CFR Part 205 rely on them (§ 205.85(c)). An chapter....

Credit terms other than those Interpretation is modified by a associated with seasonal credit programs are Administrative Procedures and subsequent amendment to the included as a part of the May 15, 1973 price Sanctions; 1979 Interpretations of the regulation(s) or ruling(s) interpreted charged to a class of purchaser under Part General Counsel thereby to the extent that the.

212 of this Chapter. NotHig in this paragraph AGENCY: Department of Energy.

Interpretation is inconsistent with the shall be construed to require suppliers to sell amended regulation(s) or ruling(s) to purchasers who do not arrange proper ACTION: Notice of Interpretations.

(§ 205.85(e)). The Interpretations credit or payment for allocated products, as

SUMMARY

Attached is the Interpretation published below are not subject to customarily associated with that class of issued by the Office of General Counsel.

on May 15.1973.

issud b theOffce f Geera Consel appal.However, no supplier may require or impose of the Department of Energy under 10 Issued in Washington. D.C., April 10, 1979.

more stringent credit terms or payment CFR Part 205, Subpart F. during the Everard A. Marsegtia.

schedules on purchasers than those in effect period March 1, 1979. through March 31, Assistant General Counsel for Interpretatons and Rulings for that class of purchaser....

on May 15.

1979.

OfAice of Generdi Counselnf 1973..

According to the facts presented by Sinclair. neither at the present time nor on Appendix A-Interpretationm 15 U.S.c. 751 et seq.ie r976s.

iSince the decision by the Temporary Emerency No.

To Dats Gategoy Fs Ncr Court of Appeals in Msret 2on Oil Co. v. FEA 547 eF.2d 1140 (TECA 1976). there can be no dub 1979-03.Sa O Corporaton..

Mahrc 5 A-349 concerning the authority of the Federal Energy Administration (FA) and its successor, the DOE. to regulate credit te2.d incident to the mandatory petroleum price regulations. In addition, the DOE Interpretation 1979-5 account. At the present time, Sinclair desires is resolved issues similar to the one presented by to modify its standard contracts for, the sale Sinclair. concerning whether changes in credit terms To: Sinclair Oil Corporation oare permissible in view of the provisions of Reofumotorgu aoin) toerequir a 21nance c 210.62(a). See Exxon Company USA.. 2 DOE rof one and one-half (lY ) percent monthly on nt0.150 (October 28, 1978; Crystal Oil Co.. 1 FEA Code: GCW-PI-Normal business practices the balance of all accounts not paid within 30 120.161 October 19741. in Oil Transit Corp.,

Facts days. No other credit terms are to be Interpretation 1977-35. 42 FR 54269 [October 5.

TheSiclirOilCopoatona mal nd changed.

1977). the DOE found that requiring purchasers of dmotor gasoline to incur for the first time the independent refiner subject to 10 CFR Part Issue additional cost of obtaining tters of credit Assistatguaranteeing paymen to Oil Transit would have the 2s Does Sinclair's proposal to assess a finance effect of mposng a morestnngent credit term than through its subsidiary. Sinclair Marketing, charge on all delinquent accounts constitute the credit terms-in effect on.Msy 15.1i973. in Inc. (Sinclair). Since May 1973. Sinclair's the imposition of a more stringent credit term violation of I 210.62ft. However the DOE has not standard contracts with jobbers and dealers than the credit terms in effect on May 15.

previously considered a case such as the present for the sale of motor gasoline have required 1973. within the meaning of 10 CFR 2-10.62(a)?

one where the proposed change in credit terms payment in full within 30 days. Payment in would apply only after the purchase price is due in full within 10 days has entitled a purchaser to Inte.'Pretotoil full.

a 1 percent discount on the purchase price.

For the reasons set forth below, the Sinclair has considered an account Department of Energy (DOE) has determined outstanding for more than 30 days to be in that Sinclair's inclusion of a percent default and subject to suit. In that instance.

monthiy finance charge on all accounts not colection costs would be assignable to the paid within 30 daysin its standird contracts