ML16342B052

Forwards Amend 4 to Indemnity Agreement B-75 Per 10CFR140 Changes,Re Increase in Liability Insurance from $140 Million to $160 Million,Effective 790501.Supporting Documentation Encl

ML16342B052
Person / Time
Site:	Diablo Canyon
Issue date:	05/01/1979
From:	Saltzman J Office of Nuclear Reactor Regulation
To:	Bonner J PACIFIC GAS & ELECTRIC CO.
References
NUDOCS 7905140512
Download: ML16342B052 (86)

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UNITEO STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 Docket Nos.

50-275 50-323~

REGULATORY DOCKET FILE COPY Pacific Gas and Electric Company ATTN:

Mr. J.

F.

Bonner President 77 Beale St.

San Francisco, California 94106 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, Jerome

Saltzman, Chic Antitrust 8 Indemni Group Office of Nuclear eactor Regulation

Enclosures:

l.

Amendment to Indemnity Agreement 2.

Amendment to 10 CFR Part 140

1 I

Docket Nos. 50-275

, '50-'323 AMENDMENT TO INDEMNITY AGREEMENT NO. B-75 AMENDI1ENT NO. 4 Effective May 1, 1979, Indemnity Agreement No. B-75, between Pacific Gas 5 Electric Company and Nuclear Regulatory Commission, dated December 31,

1975, 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.

FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION

/sl lEROME SALTZMAN Jerome Saltz'man, Chief Antitrust 8 Indemnity Group Office of Nuclear Reactor Regulation Accepted

, 1979 By PACIFIC.GAS 5 ELECTRIC C lCPANY Distribution:

Licensee (2)

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Fedora! Register / VoL 44. No. 88 / Friday. Apiil 6, 19'/9 / Rules and Regulations

,This document hes been reviewed in accordance with FmHA Instruction 1901-G. "Environmental Impact Statements." It is the determination of FmHA that this action does not constitute a major Federal action significantly affecting the quality of the human environment and in accordance with the National Environmental Po)icy of 1969. Pub. L 91-190. an Environmenta) Impact Statement is not required.

tl Authorities: [42 US.C. 1480: delegation of authority by the Secretary ofAgriculture, 7 CFR 223: delegation of authority by the Assistant Secretary for Rural Development, 7 CFR 2./0)

Dated: March 30. 1979.

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eILLnIO CODE ssioeMI I

NUCLEAR REGULATORY COMMISSlON 10 CFR Part 140 Rnanc[al Protection Requirements and indemnity Agreements; Miscellaneous Amendments AOENcY: U.S. Nuc)ear Regulatory

'Commission.

AcTtoic, Final Rule.

stfMMARYIThe provisions of Section 170 of the Atomic Energy Act of 1954. as amended, require production and utilization facilitylicensees to have and maintain financial protection to cover public, liabilityclaims resulting from a nuclear incident.

The Nuclear Regulatory Commission is amending its regulations to increase the level of the primary layer of financial protection required of c'ertain indemnified licensees. The Commission is amending its regulations at the present time to coincide. as statutorily required, with the increase in the level of the primary layer of insurance provided by private nuc)ear liabQity insurance pools.

EFFEcTfvE oATE: May 1, 1979.

~

FOR FURTlfER INFORMATlONCONTACT:

Mr. Ira Dinitz, Antitrust and Indemnity Group, U.S. Nuclear Regulatory Commission, Washington. DC 20555.

(Phone: 301%92-8336).

suPPLEMENTARY INFoRMATioN: The provisions of Section 170 of th'e Atomic Energy Act of 1954, as amended, (the Act) require production and utilization facilitylicensees to have and maintain financi'al protection to cover public'iability c)aims resulting from a nuclear incident. Section 170 of the Act. requires the Nuclear Regulatory Commission to indemnify the licensee and other persons indemnified, up to the statutory limitation on liability.against public liabilityc)aims in excess of the amount of financial protection required.

Subsection 170b. of the Act requires that for facQities designed for producing substantial amounts of electricity and having a rated capacity of 100 electrical megawatts or more, the amount of financia) protection 'equired shall be the maximum amount available from private sources. For other licensees, the Commission may require lesser amounts of financial protection: Primary financial protection may be in the form of private insurance, private contractual indemnities, self-insurance or other proof of financial responsibility, or combination of such measures.

The insurers'who provide the nuclear, liabilityinsurance, American Nuclear Insurers (ANI)and Mutual Atomic Energy LiabilityUnderwriters (MAELU),

have advised the Commission that effective January 9, 1979. the maximum amount of primary nuclear energy I[abQity insurance available was increased from $140 mQlion to $160 million. Pursuant to the provisions of subsection 1/Ob..of the Act. thL amount ofprimary financial protection required for facQ)ties having a rated capacity of 100 electrical megawatts or more willbe increased to $160 million. effective May 1, 1979. In addition. in compliance with 10 CFR Part 140..those persons licensed to possess pluton)um in the amount of 5 kilograms or more and persons licensed to process plutonium in the amount of 1 kilogram or more for use in plutonium processing and fuel fabrication plants willalso be required to provide financial protection in the amount of $160 million.

Since the amendments set out below conform the Commission's regulations to a statutory requirement, the Commission has found that good cause exists for omitting a value/impact analysis, public notice of proposed rule making and public procedure thereon as unnecessary.

Pursuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended.

> The Acl does not by its precise language Iequfie maintenance of c '>rimcry" (Le nucfccr liability insurance) lcyer and c "seconder>"'iw renoipectivc premium) layer of fincndcf plotcctlon

'ul mescly considers lhc combinction of these two layers cs "financial piolcctlon." Howevel.10 CFR Part 140. of the Commission's regulations that fmplcmenl lhe Acl. dislinguishes between thc pmncry and secondary layers of financfcl prolcction. Thc amendments in this tule Ielcle solely lo increases in the primary layer of financial protection.

and sections 552 and 553 ofTitle 5 of the United States Code, the following amendments to Title 10. Chapter I, Part 140. Code ofFederal Regulations. are published as a document subject to codification.

5 140.11

[Amended]

1. Section 140.11(a)(4) is amended by deleting '$140.000,000" and substituting therefor "$160,000.000."

f 140.13a

[Amended)

2. Section 140.13a(a) is amended by deleting the term "$140,000,000" and substituting therefor "$180,000.000."

f 14041

[Amended)

3. In $ 140.91, Appendix A, Condition 4 is amended by revising the footnote to read as follows: "For policies issued by Nuclear Energy Liability-Pro'perty Insurance Association the amount will be "$124,000,000"; for policies issued by Mutual Atomic Energy Liability Underwriters, the amount willbe

"$36,000,000."

4. In 5 140.91, Appendix A, paragraph IIIof the "Optional Amendatory Endorseme'nt" is amended by revising the footnote to read as follows:

"For policies issued by Nuclear Energy Liability-Property Insurance Association the amount wfilbe "$124,000,000"; for policies issued by Mutual Atomic Energy LiabilityUnderwriters the amount willbe "$38,000,000."

$ 140.92

[Amended]

'. Section 140.92. Appendix B, Article IL paragraph 8(a). is amended by deleting the amount '$108,500,000" wherever it appears and substituting therefor "$124,000,000."

B. Section 140.82. Appendix B, Article II, paragraph 8(b), is amended by deleting the amount '$31,500.000" wherever it appears and substituting therefor "$36,000,000."

7. Section 140.92, Appendix B, Artie)e ILparagraph 8(c). is amended by changing the amount "$140,000.000" to

'$160,000,000."

8. Section 140.82, Appendix B, Artie)e IQ. paragraph 4(b)(2), is amended by changing "$140.000,000" to

$160.000,000."

5 140.93

[Amended)

9. Section 140.83, Appendix C, Article IL paragraph

8. is amended by changing

"$140.000.000" to "$160,000,000."

10. Section 140.93, Appendix C, Artie)e III,paragraph 4(b)(2). is amended by changing "$140.000.000" to

"$160,000,000."

Federal Register / Vof. 44. No. 88 / Friday. April 8, 1979 / Rules and Regulations fl 140.94 (Amended]

11. Section 140.94, Appendix D. Article II. paragraph 6, is amended by changing

"$140.000.000" to "$1M.000,000."

$ 140.95

[Amendedl

12. Section 140.95. Appendix E, Article IKparagraph 4(b)(2), is amended by changing "$140,000,000" to

"$160,000,000."

ll 14IL107 (Amendedl

13. Section 140.107, Appendix G.

Artide II, paragraph 8(a), is amended by deleting the amount "$10(L500.000" wherever it appears and substituting therefor "$124,000.000."

14. Section 140.107, Appendix G.

Article D. paragraph 6(b), is amended by deleting the amount "$31,500,000" wherever it appears and substituting

'herefor

"$36,000.000."

15. Section 140.107, Appendix G.

Artide III,paragraph 6(c), is amended by changing the amount '$140.000,000" to "$160,000,000."

18. Section 140.107, Appendix G, Article III,paragraph 4(b), is amended by chany'ng the amount "$140.000,000" to "$160,000,000."

il 14L108 (Amended]

'7. Section 140.108, Appendix G, Article II. paragraph 8, is amended by changing the amount "$140,000,000" to

"$160.000,000."

18. Section 140.108, Appendix H, Article IILparagraph 4(b). is amended

'y chany'ng the amount "$140.000,000" to "$1M,000.000."

EFFEcTIVE DATa The foregoing amendments become effective on May 1.

1979.

(Secs. 181, Pub. L 83-703, 88 Stat. 948 (42 US.C. 2201); Sec. 170, Pub. L'5-2s8. 71 Stat.

57IL Pub. L94-197. 89 Stat. 1111 (42 US.C.

2210): Sec. 201, Pub. L 93-I38. as amended, 88 Stat.1&? 89 Stat. 415 (42 US.C. 5841)l Dated at Washington. D.C this 2nd day of April1979.

For the Nuclear Regulatory Commfssfon.

Secewl f. Chtth.

Secreauyof the Ccehahisaioa.

pR Doc. Ts-tossa Ftted 4-st ass am) e FEDERAL DEPOSiT INSURANCE CORPORATlON 12 CFR Parts 307 and 327 Assumption and Assessment of Deposit Uabliitles of insured Banks; Voluntary Termination of-Insurance Status AOENCV: Federal Deposit Insurance Corporation.

ACTIONFinal rule.

't suMMARv:The Federal Deposit Insurance Corporation has decided to revise and amend 55 307.3 and 327e2(b)(3) of its regulations to: (1) implement Sections 304 and 310 of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (FIRIRCA) which pertain to the assumption and assessment of deposit liabilities of insured banks. and (2) correct an inaccurate reference.

EFFECTIVE OATE: April8, 1979.

FOR FIIRTNER INFORMATIONCONTACl.

Jerry L Langley, Senior Attorney.

Federal Deposit Insurance Corporation.

550 17th Street, N.W., Washington, D.C.

20429, telephone (202) 389-4237.

sUprhLEMENTARYINFoRMATIoN:Section 304 ofFIRIRCA amends Section 8(q) of the Federal Deposit Insurance Act (FDI Act) to provide that whenever the deposit liabilities of an insured bank are assumed by another insured bank whether by merger, consolidation. or other statutory assumption, or by contract: (1) the insured status of the bank whose deposits are assumed shall terminate on the date lhe Corporation receives satisfactory evidence of the assumption; (2) the separate insurance of all insured deposits so assumed shall terminate six months after the date the assumption takes effect or, in the case of any time deposit, the earliest maturity date after the six-month period: and (3) the continuing bank shall give notice of the assumption to the depositors of the bank whose deposits are assumed within 30 days after the assumption takes effect. Section 307e3 has been revised to implement these provisions and to correct an incorrect citation by chany'ng the reference "tl 304.3 (s) and (t)" in Section 307.3(b) to "5 304.3 (u) and (v)".

Section 310 ofFIRIRCA amends Section 7 of the FDI Act to exdude deposits accumulated for the repayment ofpersonal loans from the definition of deposits for insurance assessment purposes. Section 327e2(b)(3) of FDIC's regulations has been amended to aline its definition of the term "deposit" for assessment purposes with that of Section 310 of FIRIRCA.

Since the changes are procedural in nature or necessitated by statutory amendment. the Board of Directors of the Federal Deposit Insurance Corporation has determined, under Section 302.6 of its rules and regulations (12 CFR 5 302.8), that notice of, and public participation in, this rulemaking is unnecessary and that good cause exists for the waiver of the ~ay deferral of the effective date for the changes.

Accordingly. 12 CFR 307.3 and 327.2 subparagraph (b) are changed as follows:

PART 307VOLUNTARY TERMiNATlONOF INSURANCE STATUS

1. 12 CFR 307.3 is revised to read:

$ 307e3 Steps to be taken and records to be furnished the Corporation where deposits are assumed by another Insured bank.-

(a) Whenever the deposit liabilities of an Insured bank are assumed by another insured bank whether by merger, consolidation. or other statutory assumption, or by contract, the continuing bank shall give notice of the assumption to the depositors of the bank whose deposits are assumed within 30 days after the assumption takes effect.s Such notice shall be (1) mailed to each depositor at the depositor's last address of record as shown upon the books of the bank, (2) published in not less than two issues of a local newspaper of general circulation, and (3) in form substantially as follows:

(Date)

Notice to Depositors:

Please be advised that the deposit liabilities shown on the books of (Name of Assumed Bank)

(City or town)

(State) es of dose of heei eee ee, ie-heve heee assumed by the undersigned bank The insured status of (Name of assumed bank) wfH terminate at the.thne provided ln section 8(ql of the Federal Deposit Insurance Act.

The separate insurance of its deposits will therefore terminate at the end of six months from the above date or, in the case of a time deposit, the earliest maturity date after the six-month period.

You are advised that the undersfgned bank is an insured bank and that your deposits will continue to be insured by the Federal Deposit Insurance Corporation in the manner and to the extent provided in said Act.

(Name of Bank)

(Address)

There may be induded in such notice any additional information or advice the bank may deem desirable.

lite notice teqnlretnent does not apply to "phantom" bank metgets as de8ned In footnote ra of Section 303.11(a)(sf.

Federal Register / Vol. 44. No. 80 / Tuesdav. April 24. 1979 /

les and Regulations 24045 NUCLEAR REGULATORY COMMISSION 10 CFR Part 140 Financial Protection Requirements and Indemnity Agreements; Mlscel)aneous Amendments Correction In FR Doc. 79-10853. appearing at page 20832. in the issue of Friday, April

6. 1979, on page 20633; make the followingcorrections:

(1) In the first column in paragraph 15.

in the second line, correct "ArticleIII"to read "ArticleII".

(2) In paragraph 17, in the first line.

correct "Appendix G" to read "Appendix H".

SitLINO CODE 150~i-M DEPARTMENT OF ENERGY 10 CFR Part 205 Administrative Procedures and Sanctions; 1979 Interpretations ot the General Counsel ACENOY: Department of Energy.

AOTION:Notice of Interpretations.

8UMMARY:Attached is the Interpretation issued by the Office of General Counsel of the Department of Energy under 10 CFR Part 205, Subpart F. during the period March l. 1979. through March 31.

1979.

Appendix B identifies those Requests for Interpretation which have been dismissed during the same period.

FOR FURTNER INFORMATIONCONTACT.

Diane Stubbs, Office of General Counsel

~ Department of Energy. 12th &

Pennsylvania Avenue NW.~ Room 1121, Washington. D.C. 20461 (202) 633-9070.

SUPPLEMENTARY INFORMATION:

Interpretations issued pursuant'o 10 CFR Part 205, Subpart F, are published in the Federal Register in accordance with the editorial and classification criteria set forth in 42 FR 7923 (February

8. 1977), as modified in 42 FR 46270 (September 15. 1977).

These Interpretations depend for their authority on the accuracy of the factual statement used as a basis for the Interpretation (10 CFR 205.84(a)(2)) and may be rescinded or modified at any time (5 205.85(d)). Only the persons to whom Interpretations are addressed and other persons upon whom Interpretations are served ape entitled to rely on them (5 205.85(c)). An

'nterpretation is modified by a subsequent amendment to the regulation(s) or ruling(s) interpreted thereby to the extent that the.

Interpretation is inconsistent with the amended regulation(s) or ruling(s)

(tj 205.85(e)). The Interpretations published below are not subject to appeaL Issued in Washington. D.C. ~ April10, 1979.

<<~A M~le.

Aeeaioni aenerol Cooneel for lnierpreiouone oint Rulings 0!ficeoiaenerol Connect I

for the sale of motor gasoline would constitute the imposition of a more stringent credit term than the credit terms in effect on May 15. 1973. in violation of 5 210.62ia).

The General Allocation and Price Rules. sei forth at 10 CFR Part 210 snd adopted on January 14. 1974. 39 FR 1924 (january 15.

1974). were intended Io set forth the provisions applicable to both the Mandatory Petroleum Allocation Regulations (10 CFR Part 211) and Ihe Mandatory Petroleum Price Regulations (10 CFR Part 212). The allocation and price regulations were adopted to implement the statutory mandate of Section 4(a) of the Emergency Petroleum Allocation Act of 1973 (EPAA), as amended. Pub. L No.93-159 (November 27.

1973).'ection 210.82(a) regulates credit terms as a function of price in recognition of the varying roles that cred)I and other conditions of sale play in the flow of product.'Section 210.82(a) provides in re)evani part:

"Suppliers willdes) with purchasers of an allocated product according Io normal business practices in effect during the base period specified in Part 211 for that allocated product. and no supplier may modify any normal business practice so as Io result in the circumvention of any provision of this chapter.... Credit Ieims other than those associated with seasonal credit programs are included as a part of the May 15. 1973 p'rice charged Io a class o(purchaser under Part 212 of this Chapter. Nail ing in this paragraph shall be construed to require suppliers to sell to purchasers who do noi arrange proper credit or payment for allocated products. as customarily associated with that class of purchaser...

onMsy15.1973....

However. no supplier may require or impose more stringent credit terms or payment schedules on purchasers than those in effect for that class of purchaseri 4.

on May 15.

1973....

According to the fects presented by Sinclair. neither at the present tiine nor on Appsndix A-tnt srpestsitons To A~9 interpretation 1979-5 Toi Sinclair Oil Corporation Regulation Interpreledi 10 CFR 210.62(a)

Code: GCWPlNormal business practices Facts The Sinclair Oil Corporation. a small and independent refinsr subject to 10 CFR Part 212. Subpart E. markets petroleum products through iis subsidiary. Sinclair Marketing.

inc. (Sinclair). Since May 1973. Sinclair's standard contracts with jobbers and dealers for the sale of motor gasoline have required payment in full within 30 days. Payment in full within 10 days has entitled a purchaser Io 6 1 percent discount on the purchase price.

Sinclair hss considered an account outstanding for more than 30 days to be in default and subject io suit. In that instance.

collection costs would be assignable to the account. At the present time, Stnda)r desires to modify its standard contracts forthe sale

'fmotor gasoline to require a finance charge of one snd one. half (1>) percent monthly on the balance of all accounts not paid wtih!n 30 days. No other credit terms are Io b' changed.

issue Does Sinclair's proposal to assess a flnance charge on all d'slinqueni accounts constitute the imposition of a more stringent credit term than the credit terms in effect on Msy 15.

1973. within the meaning of 10 CFR 210.82(a)?

Inierprata!ion For the reasons sei forth below. the Department of Energy (DOE) has determined that Sinclair'5 inclusion of a 14 percent monthly finance charge on all accounts not paid within 30 days in its standard contracts secise OS Copoesson March 5 Ace

's U.S.C. 751 ei seq. (1976).

'Since the decision by the Temporary Emergency Court of Appeals In hlarathon OilCo. v. FErt. 547 Fgd 1140 ITECA ia".).. there can be no doubt concerning the s uths riiyof ihs Fed eral Eneigy Administishon IFEA) snd iis successor.

the DOE Io regulate credit terms incident Io the msndsioiy pstrateiim price regulations. In addition. the DOE hss resolved issues similar to the one presented by Sindslr. concerning whether chsnges in credii terms are psimissibis in view ol the provisions of I 210.62(s). See Exxon Company. USrt.. 2 DOE 160.150 (october sit 1976): crystal oiIca. I FEA

$20.161 (October 6, 1974), In Oil TrnnslY Corp..

tnterpeetstion 1977-35. 42 FR 54269 (October 5.

1977). the DOE found that requiring purchsesrs of motor gssoiins to incw foe ihs first time the sdditionsl cost of obisining letters of credit guarsniseing payment is Oil Trsnsu wou)d have ths effect of imposing s more niiingeni credit tenn! hsn the ceedii terms in elleci on Msy is. I~i. in violation of $ 210.62(st. Howsvec the DOE hss noi previously considered a case such as the present one where the proposed chsnge in ceedii!eims would apply diiysfler the purchase price is dus m lull.

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'$2 lidOt Ji l

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REGULATORY INFORMATION DISTRIBUTION SYSTEM (BIDS )

DISTRIBUTION FOR INCOMING MATERIAL 50-27 323 DOCDATE: 09/i3/78 DATE RCVD: 09/20/78 ORG:

BONNER J F PACIFIC GAS 8( ELEC

=C:

SALTZMAN J NRC 3CTYPE:

LETTER NOTARIZED:

NO COPIES RECEIVED

JBJECT:

LTR i ENCL i 3RWARDING AMEND NO 3 TO INDEMNITY AGREEMENT NO B-75'ONSISTING OF NEW

-'jENDED "ARTICLE VI II" (AS LISTED)

BETWEEN APPLICANT AND NRC.

'ANT NAME: DIABLO CANYON UNIT i DIABLO CANYON UNIT 2 REVIEWER INITIAL:

XJM DISTRIBUTER INITIAL:

DISTRIBUTION OF THIS MATERIAL IS AS FOLLOWS OTES:

HANCHETT W/i CY ALL MATERIAL HEBDON W/i CY ALL SAFETY MATERIAL INSURANCE:

INDEMNITY/ENDORSEMENT AGREEMENTS (DISTRIBUTION CODE MOOi>

INTERNAL:

EXTERNAL:

EO FI W/ENCL FOR ACTION>4W/ENCL LPDR~S SAN LUIS OBISPO CA>~W/ENCL TERA<4W/ENCL NSIC+>W/ENCL ACRS CAT A44W/0 ENCL NRC PDR>>W/ENCL H JORDAN>+W/ENCL ESTRIBUTION:

LTR 7 1ZE:

iP+2P ENCL 7 CONTROL NBR:

780720274 t+czf THE END w<x++www++++++w+++w+w++w+ww<+wc+ ++

~

KMLA ORY OOCKEt'ILE COPY PA.C 1 FIC GAB AND ZLZC TRIC C0 MPA.NY 1F'&W1E

~I 77 BEALE STREET

~

SAN FRANCISCO, CALIFORNIA94106

~

(415) 781.4211

~

TWX 910.3726587 September 13, 1978 Nr. Jerome

Saltzman, Chief Antitrust

& Indemnity Group Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C.

20555 Re:

Docket Nos.

50-275 50-323

Dear Nr. Saltzman:

Enclosed is a fully executed copy of Amendment No.

3 to Indemnity Agreement No. B-75.

You also forwarded for my signature an Amendment No.

20 to Indemnity Agreement No. B-21.

However I am advised that the provisions covering retrospective premiums. apply only with regard to reactors having a rated capacity of 100,000 electrical kilowatts or more.

The Humboldt facility which Indemnity Agreement No.

B-21 covers has a rated capacity of less than 100,000 electrical kilowatts.

Accordingly I have not signed the proposed Amendment to Indemnity Agreement B-21.

Sincerely,

,Zohn F. Bonner Enclosure 7gp7'7p> I+

i~-

~R REMI c>

P0 Cp m

+

~0 UNITEDSTATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20565 Docket Nos.

50-275 50-323 AMENDMENT TO INDEMNITY AGREEMENT NO. 8-75 AMENDMENT NO.

3 Effective August 1, 1977, Indemnity Agreement No. 8-75, between Pacific Gas and Electric Company, and the Nuclear Regulatory ConmIission, dated December 31,

1975, as

amended, is hereby further amended by adding a new Article VIII to read as follows:

"ARTICLE VIII "1. If the licensee fails to pay assessed deferred

premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and. to recover the amount of such premiums from the licensee.

"2.

The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the retrospective premium by the insurance pools, that they wilI not pay the assessment.

Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings.

Subsequent submission of financial statements by such licensees may be requested by the Commission, as required.

"3. If premiums are paid by the Commission as provided in paragraph 1, payment by the Commission shall create a lien in the amount paid in favor of the United States upon all property and rights to property, whether real or personal, belonging to such licensee.

The lien shall arise at the time payment is made by the Commission and shall continue until the liability for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable.

The Commission will issue a certificate of release of any such lien if it finds that the liability for the amount has been fully satisfied or has become legally unenforceable.

"4. If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days.

The Commission may take any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to,. termination of the operating license."

FOR THE UNITEO'STATES NUCLEAR REGULATORY COMMISSION Jerome

Saltzman, Chic Antitrust and Indemnity Group Office of Nuclear Reactor Regulation Accepted

&NSKxQRRARzQSMMRANt%$

PACIFIC GAS AND ELECTRIC COMPANY BY JOHN BONNER

<dr a.dent

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+y*yk UNITEDSTATES NUCLEAR REGULATORYCOMMISSION WASHINGTON, D. C. 20555 Docket Nos.

50-275 50-323 AUG 14 197g Pacific Gas and Electric Company ATTN:

Mr. J.

F. Bonner President 77 Beale Street San Francisco, CA 94106 Gentlemen:

Me are enclosing herewith an amendment to your indemnity agreement reflecting a change in 10 CFR Part 140, "Financial Protection Require-ments and Indemnity Agreements."

The amendment to Part 140, which was effective on August 1, 1977, adds a new "Article VIII"to 5 140.92.

This article establishes procedures that the Commission would utilize to recover retrospective premiums paid by the Government on behalf of defaulting licensees.

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

Sincerely,

Enclosure:

Amendment to Indemnity Agreement Jerome

Saltzman, Chief Antitrust 8 Indemnit Group Office of Nuclear Reactor Regulation

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0 UNITEDSTATES NUCLEAR REGULATORYCOMMISSION WASHINGTON, D. C. 20555 Docket Nos.

50-275 50-323 Pacific Gas and Electric Company ATTN:

Mr. J.

F. Bonner President 77 Beale Street San Francisco, CA 94106 Gentlemen:

We are enclosing herewith an amendment to your indemnity agreement reflecting a change in 10 CFR Part 140, "Financial Protection Require-ments and Indemnity Agreements."

The amendment to Part 140, which was effective on August 1

1977, adds a

new "Article VIII"to 5 140.92.

This article establisles procedures that the Commission would utilize to recover retrospective premiums paid by the Government on behalf. of defaulting licensees.

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

Sincer ely,

Enclosure:

Amendment to Indemnity Agreement Jerome

Saltzman, Chief Antitrust 8 Indemnit Group Office of Nuclear Reactor Regulation

~S RECT Po n

C O

/p +a*++

UNITEDSTATES NUCLEAR REGULATORYCOMMISSION WASHINGTON, D. C. 20555 Docket Nos.

50-275 50-323 AMENDMENT TO INDEMNITY AGREEMENT NO. 8-75 AMENDMENT NO.

3 Effective August 1, 1977, Indemnity Agreement No. B-75, between Pacific Gas and Electric Company, and the Nuclear Regulatory COIImIission, dated December 31,

1975, as

amended, is hereby further amended by adding a new Article VIII to read as follows:

"ARTICLE VIII "l. If the licensee fails to pay assessed deferred

premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and to recover the amount of such premiums from the licensee.

"2.

The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the retrospective premium by the insurance pools, that they will not pay the assessment.

Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings.

Subsequent submission of financial statements by such licensees may be requested by the COIImIission, as required.

"3. If premiums are paid by the Commission as provided in paragraph 1, payment by the Commission shall create a lien in the amount paid in favor of, the United States upon all property and rights to property, whether real or personal, belonging to such licensee.

The lien shall arise at the time payment is made by the Commission and shall continue until the liability.

for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable.

The Commission will issue a cer tificate of release of'ny such lien if it finds that the liability for the amount has been fully satisfied or has become legally unenforceable.

"4. If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its.behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days.

The Commission may take'any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to, termination of the operating license."

FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION

/sl jERQME SALTZMILN Jerome

Saltzman, Chief Antitrust and Indemnity Group Office of Nuclear Reactor Regulation Accepted

, 1978 By PACIFIC GAS AND ELECTRIC COMP NY

~

\\

U.S. NUCLEAR REGULATORY COMMISSION NRC FoRM 195 I2.NI NRC DISTRIBUTION FoA PART 50 DOCKET MATERIAL OOCICET NU B

PILE NUMBE ETTEA ORIOINAI OPY OESCRIPTION QNOTORIZEO gtJNCLASSIFIEO TO:

Mr. Jerome Saltzman PAOP INPUT FORM ENCI OSUAE FROM:

Pacific Gas

& Elec.

Company San Francisco, California Stanle T, Skinner OATE OF OOCUMENT 7/26/77 OATS RECEIVEO 7/28/77 NUMBER OF COPIES RECEIVEO

>~+ 7~8~~

+dan PuP~&i Annual Financial Report for 1976, which includes certified financial statements for that year, and a summary of earnings indicating, amoung other things, earnings for the period ending June 30, 1977 ~ ~ ~ ~ "

(2-P)

PLANT NAM:'umboldt Bay/Diablo Canyon 1-2 RJL 8/4/77 (3-P)

M.C S%BPggg~)~

FOR ACTION/INFORMATION Eb~/IRBPiiENTAL MAViAGER:

EN IN A SXSTANT:

ASSIGNED AD:

V, MOORE LTR BRANCH CHIEF.

PROJECT MNAGER:

LICENSING ASSISTANT:

Bo HARLESS INTERNALDISTRIBUTIOiV VFHS SAFETY INI.Y~

PLANT SYSTEMS TEDESCO BENAROYA SITE SAFETY &

ENVIRON ANALYSIS DENTON & MULLER ENGINEERING IPPOLITO OPERA G REACTORS EVVIRO TECH ERNST

'GB BAER B

ER G~LL 2

TIC CHECK A TZ4Q4 E

G EXTERNALDISTRIBUTION NSIC SITE ANALYSIS VOLLiIER BUNCH J0 COLLINS CONTROL NUMBER (nW IV J

HANCHETT 16 CYS ACRS SENT CATEGO Y NRC FORM 195 12 Td) 77~160235

0

PA CIP IC Cv&.S AND ZLZC TB.IC C O MPA NY r~ C9"- ".'I~I +

77 8 EALE STREET

~ SAN F RANG I SCO, CALIFORNIA 94106

~ (4 1 5) 781

~ 4211 STANLBV T. SKINtILA SC:IIOi VICC t1CSISCNT I)EcEittI'Q "$

IIiS. I4I~I~~.,

CO@hi)11'IATO1y o

Nr. Jerom

Saltzman, Chief ~

Antitrust Z indemnity Grouo',...

Office o Nuclear Reactor Recpla'Cion'.

S. Nuclear Regulatorv Comma.ssxon N'ashington, D.

. 20555 Re:

Docket Nos.

50-133 July 26, 1977

, 4 >~),:I (.,g p

'><fqt-~ ~LA",O'I' wj r ]~~

~

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Dear 2lr. Saltzman:

Pursuant to 10 CFR 140.21(e) and (f), I hereby certify as follows t is Pacif'-c Gas and Elect

='= Company's, policy to maintain its ba..k lines in excess of its antici-p.-.ted sho t-term borrowings. 'he Company currently estimates that i" willmaintain bank lines of ap-p oximately

$ 370 million over tne period July 1, 1977 to June 30, 1978.

Xt is estimated that the Company's short-term borrowed position will not, exceed

$ 300 million and will.aver'age approximately

$ 150 million over the period.:.:Therefoxe, over the period tne Company's bank lines, will be adequate to assure tnat its deferred retrospective premiums of a possible maximum

$ 30 million can be paid.

"The est'mates assume that over the period the Company will:

1) continue to receive timely and adequate energy and natural gas cost adjustments;

2) sell approximately

$250 million of long-term securities; and 3) finance approximately

$ 590 million of capital additions, and that capital expenditures will not have to be curtailed to ensure that retros'pective premiums will be paid.

"Th-Nuclear Regulatory Commission will be advised if there are any-material changes in the Company's ability to pay retrospective premiums."

772//0235

I4r,. Jerome Saltzman July 26, 1977 In support of this statement I enclose a copy of PGandE's annual report for 1976, which includes certified financial statements for that year, and a summary of earnings indicating, among other things, earnings for the quarterly period ending 'June 30, l977.

Respei:tfully submitted, PACIFIC GAS AND ELECTRIC COi>lPAxiY By ir Tr.-~r >~r /.

'.~a~~~c~ 'kJ Stanley.T. Skinner Sen'r Vice President Enclosure

f83 JJ "

77 Beale $!reel, San Fraacisco, Ch 94106 Tel. 78l 4211, Fxt. 2~~9S FOR IIliMEDIATE RELEASE JULY 20, 1977 PG&E QUARTERLY EARNINGS SHOW SLIGHT DECLINE Earnings ava'lable for common stock of Pacific Gas and Electric Company were 764 per share for the second quarter of 1977, a decrease of 40 per share from the earnings recorded in the same period a year ago.

For the six months ended June 30, earnings were

$ 1.54 per share compared to

$ 1.27 per share a year earlier.

The consump ion o energy was moderated~during the second qua"ter by the 'ncreasing effectiveness o

the Company's conservation prog"am, the response of consumers to the tight energy situation resulting from the drought, higher rates and reduced gas supply.

Electric samey.increased only 1%,

and gas sales including Company use declinedr88.

In comparing earnings for the six month periods; the Company observed tha" earnings dur'ng the first quarter of 1976 were depressed by the California Public, Utilities Commis-sion's suspension of. the Company's fuel adjustment clause during a 15-month period which ended in April 1976.

Pursuant to the Commission's new energy cost adjustment

clause, fuel and purchased energy costs subsequent to the first quarter of 1976 are being recovered through periodic rate adjustments.

~ ~"

PACIFIC GAS AND ELECTRIC CO'"fPANY SUf&fARY OF EARNINGS Three Months Ended June 30 (Thousands)

Six Months Ended June 30 1977 1976 1977 1976 P"VENUES:

Electric

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~

as 0 ~ ~ \\4 ~ ~ ~ ~ ~ ~ ~ ~ I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~

~

~

~

~

~

~

G TOTAL

~

~

~

~

a

~

~ ~

~ ~ o

~

~ ~

~

~

~ ~

~

~

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$ 5423787

$ 368 877

$ 190223800 7209908 260 304.

249 403 624 868 579 376 803 091 618 280 1 647 668 1 300 284 7;r~ "XS?..S Opera t.'n:

Cost of Electric Cost of Gas Sold 0ther

~

~

~

~ ~

~

~

~

~

~

!Sintenance Deprec ation Tax s on Income Property and Othe"

. Interest Expense Other

~

~

~

~

~

~

~

~

~

~

~

Ene gy

~

~

~

~

~

~

~

~ ~

~

~

~

~

~

~ ~

~

axes

~

~

~

~

~

~

~ 4

~

257,479 203,557 101,284 28,697 51,579 8,637 39,550 60,866 444 113,824 174,073 91,876 24,173 49,493 17,554 34, 864 55,443 874 472,911 486,017 198,001 54,806

-103,160 26,011

< -,793972 120,022

'1 306 311,963 412,210 1803355 47,414 97,908 (14,891) 70,347 110,075 1 343 TOTDT v ~

~

4

~

~

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~ j ~

~

~

~

~

> ~ t ~

~

~

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752 093 562 174 1 542.206 1 216.724 OTHER INCOR'".

Allowance for Other F nds Used During, Construction Allowance for Borrowed Funds Used During Construction Ga'n on Bonds P "chased for Sinking Fund 0ther

~

~

~

~

~

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~

~

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~

~

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~

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~

~

~

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19,$ 67, 15,071 7,185'.:

'4,629 9 432 2, 505 1 919 OTAL

~ ~

~

~

~

~ ~

~ ~ ~ ~ ~ ~

~ ~

~ ~ ~ ~

~ ~

T 35 984 24 124 NET INCOME

~

~

~

~ ~

~ ~

~

~ ~ ~

~

~ ~

~ ~

~ o ~ ~

~

~ ~

~

~

86,982 80,230 18 960 16 324 PP" FERRED DIVIDEND REQUIREiiENTS F2Q4NINGS AVAILABLEFOR COiMMON AVERAGE CO?BfON SHARES OUTSTANDING 68, 022 8 63, 906 79,967

.80 89, 437 EARNINGS PER COMfON"SHARE

~

~

~ -

~

~

~

~

~

~

. 76 35,955 12,281 19 528 67 764 173,226 35 983 8

137,243 89,139 29,950 9, 200 5,010 3 863 48 023 131,583 30 414 101,169 79,967 1.54 1.27 DIVIDENDS DFCLARED PER COiM04N SHARE

,.50 1.00

.94

~

~ <<<<m

~

~

PACIFIC GAS AND ELECTRIC CO."PANY SPi~~fARY OF EARNINGS (Thousands)

Twelve Honths Ended June 30 1977 1976 REVENUES:

Electric Gas

~

~ ~

~

~

~ ~

~

~

~

~

~

~

~

~

~

~

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~

~

~

~

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~

~

~

~

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~

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~

~

~

~

~

~

~

~ ~

~

~

~

~

~ ~ ~

~ ~

~

~

~

~

~

$1,873,734 1 120 378

$1,405,331 1 054 728

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

~

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2 994 112 2 460 059 EfiPENSES:

Operation:

Cost of E'ect ic Cost of Gas Sold 0'ther

~

~

~

~

~

~

~

~

~

~

Haintenance.......

Deprecia='on Taxes on Income Property an Other Interest Expe;.sa 0 helh <<

the

~

~

~

~

~

~

~

~

~

~

~

Energy

~

~

~

~

~

~

~

~ <<<<

~

~

~

~

Taxes

~

~

~

~

~

~

~ \\

~

~

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~

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~

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~ (

~

~

~

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~

~

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~

~

~

~

~

7857062 8693993 385,190 103,669 204,743 38,443 152,772~

233,202 2.298 584, 955 780,383 345,972 92>418 186,920 (26,509) 1293802 214,388 2 756 TOTAL

~

~

~

~

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~

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~

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~

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2.775 372 2 311 085 OTHER INCO>":

Allowance fo" O"her Fu".ds Used During Construction Allowance for Bor owed Funds Used During Construction Gain on Bonds Purchased for Sinking Fund...................

0thar

~

~

~

~ ~ <<

~

(

~,

~

~

~

~ ~

~

~

66,564 21,684 473 36 156 56,163 19,206 10,606 9 621 TOTAL

~

~

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~

~

~

~

~ ~

~

~

~

~

~

~

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124 887 95 596 NET INCOi6

~

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~ ~

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PREFERRED DIVIDEND REQUIREMENTS EARNINGS AVAILABLEFOR COMMON

~

~

~

~

~

~

~

~

~ ~

AVERAGE C0444!ON SHARES OUTSTANDING EARN NGS PER C044ON SHARE

~

~ ~

~

~

~

~

~ ~

~

~ <<

~

~

~

DIVIDENDS DECLARED PER COMON SHARE 343,627 69 254 3

274,373 86,723 3.16 1.94 244,570 55 ill 189,459 79,967 2.37 1.88

t

~g QE0 0

.'~ o IP +a**~

UNITED STATES NUCLEAR REGULATORYCOMMISSION WASHINGTON, D. C. 20555 June 15, 1977 Docket Nos.

50-275 50-323 Pacific Gas and Electric Company ATTN:

Mr. J F.

Bonner Executive Vice President 245 Market Street San Francisco,. California 94106 Gentlemen:

The Commission is completing %he implementation of certain provisions of the 1975 amen~ts ta the Pnce-Anderson Act (Public Law 94-197),

so that the new retrospective praedium system can become effective on August 1, 197r'.

The Commission published in the Federal Re ister on January 3,

1977 (42 F.R.

46) its in"'tion to eswblish certain requirements relating to guaranteeing re r ospective premiums to assure that following a nuclear incident defied.retrospe~~ve premiums will be paid by licensees and that governmen=:

=unds will not have to be used to cover defaults in such payments.

These guaranieo requirements may be met by providing any one or a combination of alternativ methods in the amount of $10 million for each large pc~ reactor a licensee operates.

These alternatives would be:

l.

2.

3.

4'.

5 ~

Sure~~

bonds; Letters of credit; Revolving credit/term loan arrangements; Maintenance of escrow deposits of government securities; Annual certified financial statements and cash flow projections showing either that' cash. flow (i;e., cash available to a company after all operating

expenses, taxes, interest charges and dividends have been paid) can be generated and would be available for payment of retrospective premiums'within three (3) months after submission of the statement, or a cash reserve or a combination of cash flow and cash reserve, and 6.

Such other type of guarantee approved. by the Commission.

The purpose of this letter is to learn from you the type af guarantee that you intend to provide as well as to provide some. guidance concerning Alternative 5 of the guarantees (a showing of adequate cash'flow).

1n

P

~

~s

Pacific Gas and Electric Company June 15, 1977 order to allow us to analyze the adequacy of'he showing of cash flow, we should be provided with the following:

(1)

An annual certified financial statement for the most recent reported year preceding the submission date; (2) a quarterly financial statement for the last quarter preceding the submission date; (3) a one year internal cash flow projection accompanied by underlying assumptions showing that cash flow (i.e., cash available to a company. after all. operating

expenses, taxes, interest charges, and: dividends have been paid) for $10 million can be generated and would be available'or payment of retrospective premiums within three months after submission of the statement; (4) a narrative staterent indicating which capital expenditures (if any) would be curtailed to ensure that retrospective preniums up to $10 million would be available for payment.

The cash floe prospect-on should be for a one year period preferably beginning either at the anniversary date or if unduly burdensome at the calendar year starting closet to the anniversary date.

This projection should inclu='

.detailed breakdown of expected cash

sources, e.g.,

retained cari '.~cs depreciation, deferred taxes, etc.,

and should be certified by

~ cfficial of the company.

All utilities will be required to provide their. first submission of guarantees by August 1, 1977.

Annual submissions thereafter should be on the anniversary date of any of the utility s indemnity agreements.

Utilities may request another date for their annual submittals.

If more than one statement is provided in those cases where there are multiple licensees, all such statements should utilize the same submittal date.

As provided for in the regulations, the Commission will impose a single

$1,000 minimum indemnity fee per year upon any licensee submitting in that year a certified financial statement as the guarantee of payment of deferr ed premiums for its operating reactors.

If more than one statement is. provided in those cases where there are multiple licensees, then a

$1,000 minimum annual indemnity fee will be imposed on each licensee submitting a statement.

He would expect, however, that in cases where there are numerous licensees, some with small percentages of ownership, that only the principal owner(s) will submit this information for the entire

$10 million guarantee.

Pacific Gas and Electric Company June 15, 1977 We would appreciate your indicating to us by July 1, 1977 the type of guarantee that you intend to provide us with on August 1, 1977 and what your preferred anniversary date for future submittals would be.

Please provide the contents of this letter to your co-licensees (if any). If you have any questions concerning this letter or any other matter, you may contac Ira Dinitz, Indemnity Specialist on 301-443-6961.

Sincerely, lgm8n gigne4. )gpme D >'"

Jerome

Saltzman, Chief Antitrust 5 Indemnity Group Nuclear Reactor Regulation

U.S. NUCLFAA AEOULATOAV COMMISSIO~

~

1 s

F<PnM 199 p.1OI;

~

~

NRC DISTRIBUTION FoR PART 50 DOCI<ET MATERIAL DOCKET NUMOOA FILE NUMBER TO:,

~ETTER

%ORIGINAL C3copv DESCRIPTION ONOTORIZED ISUNC LASS IF I E D Mr. Jerome Saltzman PROP INPUT FOAM ENCLOSURE FROM:

Pacific Gas

& Electric Company

.'an Francisco, California John Fo Bonner DATE OF DOCUMENT 5/23/77 DATE IIECEIVED 5/26/77 NUMOER OF COPIES RECEIVED S/c ww~

The amount

$125,000,000>>

is deleted wherever. it substituted tkereforoo ~ ~ ~ ~

The amount >>96,875,000" is deleted wherever it substitutedn

~

~ ~

The amount >>28,125,000<<

is deleted wherever it substituted.

~ ~ ~ ~ ~

PLANT NAME:

Diablo Canyon Units 1

lk 2

RJL Amdt to Indemnity Agreement No, B 75 (Amdto Non 2):

appears and the amount "140,000,000<< is ppears and the amount "108,500,000<< is ppears and the amount >>31,500q000<< is i DO@OX REMOVF'QE9 (1-P)

FOR ACTION/INFORiVIATION INTERNAL0 R I BUTION IST EXTERNAL DISTRIBUTION CONTROL NUMBER 77 I530135 N>>c Fo<<a>>oo n.>a I

PACI FZC" Cr&S AND KLKCTB.XC C OMPWM Z

+

77 SEAI E STREET

~

SAN FRANCISCO, CALIFORNIA 94 I OS JOHN F.

CIO N N 6 R PRCSIDCNT AIIO CHICK CXCCUTIVC Ot'FICCR May 23, 1977 gn,gLGOIN PRHHLkl,'l)I5 'g%5 Mr. Jerome

Saltzman, Chief Antitrust & Indemnity Group Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C. 20555

Dear Mr. Saltzman:

Enclosed for your files are fully executed copies of Amendment No.

19 to Indemnity Agreement No.

B-21 and Amendment No.

2 to Indemnity Agreement No.

S-75.

Sincerely, A

Enclosures

s.

~R RECy

+4 o

csO 40

&0

++*++

UNITEDSTATES

. NUCLEAR REGULATORYCOMMISSION WASHINGTON, D. C. 20555 Docket No. 50-275 50-323 AMENDMENT TO INDEMNITY AGREEMENT NO. B-75 AMENDMENT NO.

2 Effective fiMY I Ia77

, Indemnity Agreement No. B-75, between Pacific Gas and Electric Company, and the Nuclear Regulatory CoraIIission, dated December 31, 1975, as

amended, is hereby further amended as follows:

The amount

"$125,000,000" is deleted wherever it appears and the amount "$140,000,000" is substituted therefor.

The amount "$96,875,000" is deleted wherever it appears and the amount "$108,500,000" is substituted therefor.

The amount

"$28,125,000" is deleted wherever it appears and the amount "$31,500,000" is substituted therefor.

FOR,THE UNITED STATES NUCLEAR REGULATORY COMMISSION Pg V ~

I Jerome

Saltzman, Chief Antitrust

& Indemnity. Group Nuclear Reactor Regulation Accepted Ma 23 By pdfln F. Bonner, presidenn PACIFIC GAS AND ELECTRIC COMPANY

, 1977

~8 RECT P0 ClO 1

C~

Cy

+n

~O

~**++

UNITEDSTATES NUCLEAR REGULATORYCOMMISSION WASHINGTON, D. C. 20555 Docket No. 50-133 AMENDMENT TO INDEMNITY AGREEMENT NO. 8-21 AMENDMENT NO.

19 Effective tIIAY ~

, Indemnity Agreement No. 8-21, between Pacific Gas and Electric Company, and the Atomic Energy Commission, dated August 28,

1962, as

amended, is hereby further amended as follows:

The amount

"$125,000,000" is deleted wherever it appears and the amount

"$140,000,000" is substituted therefor.

The amount

"$96,875,000" is deleted wherever it appears and the amount

"$108,500,000" is substituted therefor.

The amount

"$28,125,000" is deleted wherever it appears and the amount

"$31,500,000" is substituted therefor.

FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION

,r Jerome

Saltzman, Chief Antitrust 8 Indemnity Group Nuclear Reactor Regulation Accepted M

7 By PACIFIC GAS AND ELECTRIC COMPANY

//

gg.John F. Bonner President

, 1977

) I' J

~ty negI, i

i~

+w*w+

Docket Nos.

50-275 5(F3 UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 APR 20 1977 Pacific Gas and Electric Company

~.ATTN:

J.

F. Bonner Executive Vice President 245 tlarket Street San Francisco, California 94106 Gentlemen:

, lie are enclosing herewith an amendment to your indemnity agreement reflecting the changes to 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements," effective ttay', 1977.

The amendments to Part 140, a copy of'which is also enclosed, give effect

" to.the. increase from $125 million to $140 million in the primary layer of nuclear energy liability insurance provided by Nuclear Energy Liability-Property Insurance Association and llutual Atomic Energy Liability Underwriters.

Further, the amendments make certain-other.

.changes'in the regulations necessitated by enactment of'Public Law.,94-197.

Me would appreciate your indicating'your 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 let us know.

Sincerely, Jerome Saltzman, Chj f Antitrust 5 Indemnity Group

'ar Reactor Regulation Nucl

Enclosures:

. 1.

Amendment to Indemnity Agreement 2.'-

Amendment to 10 CFR 'Part 140

~~ri

~pa AECOq o

P Cy A.

I O

J<iP

++*++

-Docket No. 50-275 50-323 UNITED STATES NUCLEAR REGULATORY COMMlSSlON WASHINGTON, D. C. 20555 AMENDMENT TO INDEMNITY AGREEMENT NO. B-75 AMENDMENT NO.

2 Effective MAY l 1977

, Indemnity Agreement No. B-75, between Pacific Gas and Electric Company, and the Nuclear Regulatory Commission,.

dated December 31,

1975, as

amended, is hereby further amended as follows:

The amount

"$125,000,000" is deleted wherever it appears and the amount

"$140,000,000" is substituted therefor.

The amount

"$96,875,000" is deleted wherever it appears and the amount

"$108,500,000" is substituted therefor.

The amount

"$28,125,000" is deleted wherever it appears and the amount

"$31,500,000" is substituted therefor.

FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION

/sl JEAOME SAGllIAN Jerome

Saltzman, Chief Antitrust tn Indemnity Group Nuclear Reactor Regulation Accepted

, 1977 By PACIFIC GAS AND ELECTRIC COMPANY

Ar

oci~et Nos 50 27.5 50-323 Ah"PD'".ENT TO XNDH"NJXTY AGREEMENT HO. B-75 2IIENDIKHT NO; Effeet].ve o

Xn&mnity Atj'reement NQ. B-75 g 876 between Pacific Gas and L'lectric Company, anQ the'Nuclear Regulatory Commission, Bated December 31,. 1975,, is h'ereby amendeQ as fo11'ops:

Xtem 3 of the Attachment. to the indemnity agreement is deleted in its entirety and the 'following substituteQ therefor:

Xtem 3 - License number or numbers SNN-1503 SNhl-3.6 67 (Prom 12:01 a.m.,

OtT 16 19IG

)

(Prom 12:01 a.ri>.,

December 31, 1975),

POR THE UNXTED STATES NUCLEAR RECUT>%TORY COhB1XSSXON Jerome

Saltzman, Chief

.Antitrust G Xndemnity Group

'Nuclear Reactor Be'gulation AccepIQQ Jiy PACX]!XC GAS A"1D DLt CTRXC CO"6'Al1Y 1976 Distribution:

Licensee,(2 originals)

PDR ELD Docket Filest~

Div.. Lab. Relations XE

,Xndemnity Piles XDinitz R/P AXG R/P aI~I ICC~

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UNITED STATES NUCLEAR REGULATORY COMMISSION WASH INGTOV O.

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5p 323 Indemnity Agreement No. 3-75 This Indemnity Agreement No. 8-7$

is entered into by and between PACIFIC GAS AND ELECTRIC COI1PANY (hereinafter referred to as the "licensee" ) and the United States Nuclear Regulatory Commission (hereinaftex referred to as the "Commission" ) pursuant to subsection 17pc of tne Atomic Energy Act of 1954, as amended (herein-after referred to as "the Act").

ARTICLE I As used in this agreement:

1.

"Nuclear reactor," "byproduct material," "person," "source material," and "special nuclear material", shall have the meanings given them in the Atomic Energy Act of 1954, as

amended, and the regulations issued by the Commission.

2.

Except where otnerwise specifically provided, "amount of finan-cial protection" means the amount specified in Item 2a ahd'.b, of the Attachment annexed hereto, as modified by paragraph 8, Article II, with respect to common occurrences.

3.(a) "Nuclear incident" means any occurrence, including an extra-ordinary nuclear occurrence, or series of occurrences at the location or in the course of transportation causing bodily injury, sickness,

disease, or death, or loss of or damage to property, ox loss of use of property, arising out of or resulting from the radioactive, toxic, explosive, ox other hazardous properties of the radioactive material.

(b) Any occurrence,, including an extraordinary nuclear occurrence, or series of occurrences causing bodily injuxy, sickness,

disease, or

death, or loss of or damage to pxoperty, or loss of use of property,

4 1

arising out oz or resulting from the radioactive, toxic, explosive, or other hazardous properties of The radioactive material discharged or dispersed from the location over a period of-days,

weeks, months or longer, and also arising out of such properties of'ot:her mate ial defined as "the radioactive material"'in any other agreement or agreements entered into by the Commission under subsection 170c.- or k of the Act and so discharged or dispersed zrom "the location" as defined in any such other agreement, or ii. The radioactive material in the course of transportation.

and also arising out, of. such. properties of other material defined in any other agreement entered into by the Commission.

pursuant to subsection 170c or. k of the Act as "the radio-active material" and which is in the course or" transportation shall be deemed to be a

common occurrence.

A common occurrence

sha13, be deemed to constitute a single nuclear incident.

4.

"Extraordinazy nuclear occurrence" means an event which. the.

Commission has determined to be an. extraordinary nuclear occur-rence as defined in the Atomic Energy Act of 1954, as amended.

5.

"Xn the couzse of transportation" means in the course oz trans-portation within the United States, including handling or temporary storage incidental thereto, of the radioactive material to the loca-tion or zrom the location provided that:

(a) Kith respect to trans'portation of the radioactive material to the location, such transportation is not by predetermination to be interrupted by the removal of the material from the transporting conveyance for any purpose. other.than. the continuation oz such, trans.-

porra ion to the location or temporary storage incidental thezeio; (b) The tzanspoztation of the radioactive material from the. loca-tion shall be deemed to end. when the. z'adioactive material is removed zrom the transporting conveyance for any purpose other than the con-tinuance of zransportation or temporary storage incidental thezeto; (c) ":n rhe course oi transportation" as used in this agreement shall not include transportation of the radioactive material to the B

0

location if the material is, also "in,.the course of transportation" from any other "location.". as defined. in any other agreement entered into by the Commission pursuant to subsection 170c or k of the Act.

6.

"Person indemnified" means

.the licensee and any other person who may be liable for public liability.

7.

"Public liability"means any legal liability arising out of or resulting from a nuclear incident, except (1) claims under State. or Federal Workmen's Compensation Acts of employees of persons indemni-.

fied who are employed (a) at the location or, if the nuclear incident occurs in the course of transportation of the radioactive material, on the transporting vehicle, and (b) in connection with the licensee's possession, use or transfer of the radioactive material; (2) claims arising out of an act of war; and (3) claims for loss of, or damage to, or lose of use of (a). property which is located at the location and used in connection with the licensee's possession, use, or trans-fer oj the radioactive material, and (b) if. the nuclear. incident occurs in the course of transportation of the radioactive material.,

the transporting vehicle, containers used in such transportation, and the radioactive material.

8.

"The location"- means the location described in Item 4 of the Attachment hereto.

9.

"The radioactive material" means

source, special nuclear, and byproduct material which (l) is used, or to be used in, or is. ir radiated or to be irradiated by,, the nuclear reactor or. reactors.,

subject to the license or licenses. designated in the Attachment

hereto, or (2) which is produced as the result of operation of said reactor(s).

10.

"United States" when used in a geographical sense includes, all Territories and. possessions of the United States, the Canal Zone and Puerto Rico.

ARTICLE II l.

, At all times during the term of the license or licenses desig-nated in Item 3 of the Attachment, hereto, the licensee will maintain financial protection in the amount. specified in Item 2. of-the Attach-ment and in the form of the nuclear energy liability insurance policy

r

designated in the Attachment, Xf more than one license is designated in Item 3 of the Attachment, the licensee agxees to maintain such.

financial protection unti3. the end of the term of that. license, which will be the last to expire.

The. licensee shall, notwithstanding the.

expiration, termination, modification, amendment, suspension or revo-cation of any license or licenses. designated in Xtem 3-of the.'Attach-.

ment, maintain such financial protection in effect'ntil all. the. x'adio-.

active material has been removed from the. location and transpoxzation of the radioactive material from the location has ended. as defined in subparagraph 5(b), Article I, or until the Commission authorizes

the, termination or the modification.,of such financial protection

. The Commission will not unreasonably withhold such authorization.

2.

In the event of any payment by the insurer or insurexs undex' policy or policies specified in Item 5 of the Attachment. hereto-which.

reduces the aggregate limit. of such policy or policies below. the amount.

of financial protection, the licensee will promptly apply-to. his insurers for reinstatement of the. amount specified. in Xtem 2a of. the, Attachment.

(without x'eference. to paragraph..b. of. Xtem 2) and will.make all. r'easonable efforts to obtain such. xeinstatement.,

In the event that. the licensee. has not obtained reinstatement. of such amount within ninety days after the date of such reduction, and. in the. absence of good cause shown. to. the.

contrary, the Commission. may issue an. order requiring the licensee to furnish financial protection for such amount in another form.

3, Any obligations of,the. licensee, under subsection 53e.{8) of.,the Act to indemnify. the United'tates.

and, the Commission. from pub"'ic liability, together with any public liability satisfied by the in-surers under the policy or policies. designated in the Attachment hereto, shall not in the aggxegate.

exceed the amount of. financial, protection with respect to any nuclear. incident, including, the. reason-able costs of investigating and settling claims and defending suits for damage.

X 4.

Pith respect to any extraox'dinary nuclear occuxrence to which this agreement

applies, the Commission, and. the. licensee on behalf of. itself and other persons indemnified, insofar as their interests

appear, ea-h agree to waive (a) any issue or defense as to the. conduct of the claimant or-fault of persons indemnified, including, but not limited.to

(1) negligence; (2) contributory negligence; (3) assumption of the risk; (4) unforseeable intervening causes, whether involving the conduct of a third person or an act'of God.

As used herein, "conduct of the claimant" includes conduct of persons through whom the claimant derives his cause of action; (b) any issue or defense as to charitable or governmental immunity; (c) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his ingury or damage and the cause thereof, but in no event more than ten years after the date of the nuclear incident.

The waiver of any such issue or defense shall be effective regardless of whether such issue or. defense may otherwise be deemed Jurisdictional or relating to an. element in the cause of action.

The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.

5.

The waivers set forth in paragraph 4 of this Article:

(a) shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages; (b) shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrong-fully caused by the claimant; (c) shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extra-ordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's com-pensation or occupational disease law:

Provided, however, That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility inconnection

with the construction of a nuclear reactor with respect to which no operating license has been issued by the Atomic Energy Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

{1) the, claimant is employed exclusively in connection with the construction of a nuclear reactor, including all relate) equipment and installations at the facility, and (2) no operating license has been issued by the AEC with respect to the nuclear reactor, and (3) the claimant is not employed in connection with the possession,

storage, use or transfer of nuclear material at the facility.

(d) shall not apply to any claim for punitive or exemplary,

damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual

damages, measured by the pecuniary in)uries resulting from such death 'but not to exceed the maximum

'mount otherwise recoverable under such law; I

(e) shall be effective only with respect to those obligations set forth in this agreement; (f) shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the pro-tection afforded under (1) the limit of liability provisions under subsection 170e of the Atomic Energy Act of 1954, as amended, and

{2) the terms of this agreement and the terms of the nuclear energy liability insurance policy or policies designated in the attachment hereto.

6.

The obligations of the licensee under this agreement, shall apply only with respect to nuclear incidents "occurring during the term of this agreement.

7.

Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided,~that the licensee is then, entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders,

~

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7 oa lilith respect to any common'occurrence:

(a)

IE the sum of the limit of liability of any Nuclenr Energy Liability Insuranco Aosociation policy designated in Item 5 of the Attachment and the limits of liability of. all othcx'uclear energy liability insurance policieo (facility fora) applicable to such common occurrence and iooued by Nuclear Energy Liability Insurance Association exceeds

$96,875,000, the a..ount ox financial protection specified in Item 2a and b of the Attachment shall be deemed to be reduced by that propox'tion of the difference between said sum and

$.96,875,000 as the limit of liability of the Nuclear Energy Liability Insurance Association policy desi nated in Item 5 of the Attachment bears to the sum of the limits of liability of all nuclear energy liability insurance policies {facilityform) applicable to such common occurrence and isoued by Nuclear Energy Liability Inouranc Association; (b) If the sum of the limit of liability of any h'utual Atomic Energy LJability Underwriters policy designated in Item 5 of the Attachment and the limits of liabili y of all other nuclear energy liability insurance policieo (facility form) appU.cable to ouch common occurrence and iooued by Mutual Atomic Energy Liability Underwriters exceeds

$ 28,125,000, the amount of financial pxotection specified in Item 2a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said oum and

$ 28)125,000 as the limit of liability of the Hutual Atomic Energy Liability Underwriters policy designated in Item 5 of the Attachment bears to the sum of the limits of liability of all nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwritero; (c) If any of the other applicable agreements ia with a 'person who has furnished financial protection in a form other than a 'nuclear energy liability inourance policy {facilityform) issued by t~uclear Energy Liability Insurance Association or Mutual Atomic Energy Li bility Underwritero and if also the sum of the amount of finan-a 7

of cabal protection established under this agreement

<<nd the amounts o

financial protection established under all oth r applicable agreements exceeds

$125,000,000, the obligations of the licensee shall not exceed n great r proportion of

$ 125,000,000than the amount of financial pro-tection establish d undex'his cgreemont becro to the oum of such amount and the amounts of financial protection established under all other applicable agrecmcnto.

I

(d)

As used in this paragraph 8, Article II, and in Article III, "other applicable agreements" means each other agreement entered into by the Commission pursuant to subsection 170c of the Act in which agreement the nuclear incident is defined as a

"common occurrence."

As used in this paragraph 8, Article II, "the obligations of the licensee" means the obligations of the licensee under subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability, together with any public liability satisfied by the insurers under the policy or policies designated in the Attachment, and the reasonable costs of investigating and settling claims and defending suits for damage.

9.

The obligations of the licensee under this Article shall not be

- affected by any failure or default on the part of the Commission or the Government of the United States to fulfil,1 any or all of its obligations under this agreement.

Bankruptcy or insolvency of any person indemnified other than the licensee, or the estate of any person indemnified other than the licensee, shall not relieve the licensee of any of his obligations hereunder.

ARTICLE III 1.

The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.

2.

With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the Commission agrees to pay to such person those sums which such person would have been obligated to pay if such property had belonged to another; provided, that the obligation of the Commission under this paragraph 2

does not apply with respect to:

(a)

Property which is located at the location described in Item 4 of the Attachment or at the location described in Item 3 of the declarations attached to any nuclear energy liability insurance policy designated in Item 5 of the Attachment; (b)

Property damage due to the neglect of the person indemnified to use all reasonable means to save and preserve the property after knowledge of a nuclear incident; (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicles and containers used in such transportation; (d)

The radioactive material.

3.

Thc Commission agrees to indemnify and hold harml.css the licensee

<<nd other persona indemnified as their interest may appear, from the reasonable costs of investigating, settling and defending claims for pdb 1 lc 1iabtlity.

4.(n)

Thc obligations of the Con~~ission under this agreement shall apply only with respect to such public liability, such damage to property of persons legally liable for the nuclear incident (other than such property described in the proviso to paragraph 2 of this Article), and such reasonable coats described in paragraph 3 of this Article as in the aggregate exceed the amount of financial protection.

(b)

Mith respect to a common occurrence, the obligations of the Commission unde'r this, agreement ohall apply only with respect to such public liability, such damage to property of persona legally, liable for the nuclear incident (other than such property described in the proviso to paragraph 2 of this Article), and to sucn reason-able costs described in paragraph 3 of this Article, as in the aggregate exceed whichever of the following is lower:

(1)

The sum of the amounts of financial protection established under this agzeem nt and all other applicable agreements; or (2) $125,000,000.

5.

The obligations of the Commission under this agreement shall apply only with respect to'nuclear-incidents occurring during the term of this agreement.

6.

~

The obligations of the Commission under this and all other

'greements and contracts to which the Conanission is a party shall not, with respect to any nuclear incident, in the aggregate exceed whichever of the following ia the lowest:

(a)

$500,000,000; (b)

$560,000,000 loss thc amount of financial protection required under this agreement; or (c) with respect to a common occurrence,

$560,000,000 less, the sum of the amounts of financial protection established under this agreem"nt and all other applicable agreements.

7.

The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfillits obligations under this agreement.

Bankruptcy or in"olvency of the licensee or any other person indemnified or of the. estate of the licensee or any other person indemnified shall not relieve the Commission of any o its obligations hereunder.

0 l

ARTICLE IV 1.

When the Commission detezmines that the United States. will probably be required to make. indemnity. payments under. the: pzovisions..

of this. agreement,. the Commission shall: have. the right-to-collaboxate.

with the. licensee. and. other. persons. indemnified. in; the, settlement. and.

defense of any claimand. shall. have. the. right..(a). to. x'equire. the.

px'iox'pproval of the Commission. for. the settlement or payment-of-any. claim.

or action asserted, against. the. licensee. or. othex'erson. indemnified..

for public, liabilityor.damage. to. property of. persons. legally liable for the nucleax', incident. which. claim. oz-action.,the. licensee ox-.the Commission may be xequixed. to. indemnify. under this agreement;. and.

(b) to appear through. the. Attorney-General. of the. United. States. on.

behalf of the licensee or other pex'son'ndemnified,.take chaxge.of.

such action and settle. or. defend. any such. action.

. If.the. settlement or defense of any such action. or-claim is. undextaken..by..the-Commission, the licensee shall furnish. all-xeasonable assistance in effecting a settlement or assexting a defense.

2.

Neither this agreement. nor any intexest therein, nor claim...

thereunder may be assigned or transferred without the appxoval of the Commission.

ARTICLE V The parties, agree that they. will..entex into. appropriate amendments. of. this, agreement. to the extent that. such. amendments.

axe requixed pursuant-to. the..

Atomic Energy. Act of 1954, as. amended, or licenses, regulations or orders of the Commission, ARTICLE VI The licensee agrees to pay. to. the. Commission..such fees as aze-established.

by the Commission pursuant to regulations or orders of the Commission.

E ARTICLE VII The term. of this agreement, shall. commence. as. of. the. date, and. time specified.

in Item. 6. of, the. Attachment. and shall. terminate. at. the, time. of.expiration. of that license, specified in. Item 3 of. the. Attachment,. which. is. the. last. to. expire;..

provided. that, except as may. otherwise. be. provided.,in applicable regulations or orders. of the Commission,. the term. of. this agreement. shall not-terminate until all the xadioactive material has been removed. from. the..location. and transpoxtation. of the radioactive material. fxom the. location. has ended. as defined in, subparagraph 5(b),.Article. I.. Termination, of the. tex'm of. this=

agreement shall not affect any obligation. of the licensee ox, any obligation of the Commission under this agreement. with respect to any nuclear incident occurring during the term of this agreement.

UNITED STATES NUCLEAR REGULATORY COIRXSGXOH ATTACIB1ENT Item 1 - L3.censee Indemnity Agreement No. $-75 4

Pacific Gas and, Electric Company Address 77 Beale Street San Prancisco, CA 94106 Xtem 2 Amount. of financial protect3.on a.

01,000,000 b.

Hith respect to any nuclear inc3.dent, the amount

.specified in Item 2a of this Attachment shall be deemed to be (1) reduced to the extent that, any payment made by the insurer or insurers under a policy or pol3.cies specified in Item 5 of th3.s Attachment reduces the aggregate amount of such insurance policies below the amount speci. fied in Xtem 2a and (i3.) restored to the extent that, following such reduct3on, the aggregate amount. of such insurance policies is reinstated.

Item 3 L3.cense number or numbers SHIT-1503

'tem 4 Location All of the prem3.ses 3.ncluding the ladd and all bu3.1dings and structures known as the Diablo Canyon Nuclear Power X'lant 3ncluding but not 13mited to Unit's X and XI.

The D3.ablo Canyon Nuclear Power Plant. is located on a site consisting of about seven hundred fifty (750) acres near the mouth of D3.ablo Creek, approximately twelve (12) miles west southwest of the city San Luis Obispo in San Luis Ob3.spo County, Californ3a.

Xtem 5 Insurance Policy No(s).

Nuclear Energy Liabil3.ty Policy (Pac3.1ity Form) No. HF-228 3.ssued by the Nuclear Energy Xiability Xnsurance Association.

OPPICR~

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Xtem 6 - The indemnity agreement designated above, of vhich this Attachment is a part, is effective as of 12:01 a.m.

on the 3/ +

day of Qicc,e~bF~

< 1975<<

FOR THE UNXTED STATES NUCLEAR REGULATORY COMMISSION

%l KRONE SA1T7MA/t Jerome

Saltzman, Chief Antitrust 8 Indemnity Group Nuclear Reactor Regulation PACIFIC GAS AND ELECTRXC COMPANY Dated at Bethesda,

Maryland, the 31~~

day of 31ece~ $ ~~

1975.

Distribution:

Licensee (2 originals)

PDR ELD Docket Files +

Div. Labor Relations RO Desk Indemnity File IDinitz Reading OAI Reading OppIC43v

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Pacific Gas

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A. Braitman DATE OE DOC 8-6-74 ORIG NONE DATE 'REC'D 8-14-74 CC OTll""R LTR RPT OT~R SENT AEC PDR X

SENT LOCAL PDR X

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'L~AfCi KSS PROP Ib~O INPUT NO CYS PZC'D 1

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NOTE: Dist Per J.

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- ACKN0%LEDGZD PLANT NNK:Diablo Canyon 1 & 2 ENCLOSURES:

'Proposal to Define premises of indemnity agreement, dated 7-23-74.

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4(TITTITT((a(all CC(l(IL August 6, 1974 Mr. Abe Braitman, Chief Office of Antitrust 6 Indemnity Directorate. of Licensing Office of Regulation U. S. Atomic Energy Commission Washington, D. C. 20545

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Re:

Docket No. 50-275-OL Docket No. 50-323-OL

Dear Mr. Braitman:

At, the appropriate time we will enter into an indemnity agreement with the Atomic Energy Commission in accordance with 10 CFR l40.

As a description of the location for such an agreement, I enclose a copy of a map indicating a proposed boundary for such a descrip-tion.

Xn general, as you can =see, it follows a fence which is to be constructed with completion scheduled to coincide with completion of construction of Unit 2.

The FSAR contains maps giving various views of the proposed site.

If a photograph would be of assistance, please let me know.

In.any event, I would appreciate receiving your comments as to this proposed outline of. the loca-tion for purposes of the insurance and indemnity agree-ment.

Very truly yours, DOC~

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