ML17173A802

Forwards Amend 21 to Indemnity Agreement B-10 Per 10CFR140 Changes,Re Increase in Liability Insurance from $140 Million to $160 Million,Effective 790501.Supporting Documentation Encl

ML17173A802
Person / Time
Site:	Dresden
Issue date:	05/01/1979
From:	Saltzman J Office of Nuclear Reactor Regulation
To:	Poole R COMMONWEALTH EDISON CO.
References
NUDOCS 7905140404
Download: ML17173A802 (6)

Text

{{#Wiki_filter:~. p ' UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 MAY 1 1979 Docket Nos. 50-10. 50-237~ 50-249 REGULATORY DOCl\\ET FILE COPY Commonwealth Edison Company ATTN: Mr. Robert D. Poole Insurance Administrator P. 0. Box 767 Chicago Illinois 60690 Gentlemen: ) We are enclosing herewith an amendment to your indemnity agreement reflecting the changes to TO 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,

Enclosures:

1.

Amendment to Indemnity Agreement

2.

Amendment to 10 CFR Part 140

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.20832 Federal ~ I Vol. 44, No. ~ I Friday, April 6, 1979 I Rule. Regulations This document has been reviewed in acco~ance with FmHA Instruction 1901-G, "Environmental Impact Statements." lt is the determination of FmHA.that this action does not constitute a major Feder~ action significantly affecting the quality of the human environment and in accordance With the National Environmental Policy of 1969, Pub. L. 91-190, an Environmental Im.pact Statement is not required. Authorities: (42 U.S.C. 1480: delegation of authority by the Secretary of Agriculture, 7 CFR 2..23: delegation of authority by the

• Assistant Secretary for Rural Development. 7 CFR2..70)

Dated: March 30, 1979. Gmdaa~ (PD!HA lmlnleliDD 444.5} * ~Doc. ~10i!81 Filed 4-6-7Ui lll45 am} Bii.UNG CODE M1Ml7-41 .NUCLEAR REGULA TORY COMMISSION 10 CFR Part 140 Financial Protection Requirements and . Indemnity Agreements; Miscellaneous Amendments AGENCY: U.S. Nuclear Regulatory Commission. ACTION: Final Rule.

SUMMARY

The provisions of Section 170 of the Atomic Energy Act of 1954, as amended, require production and utilization facility licensees to have and maintain financial protection to cover.

public liability claims resulting ~m a nuclear incident. The Nuclear Regulatory Commission is amending its regulations tc:i increase the level of the primary layer of financial protection required of certain indemnified licensees. The Commission is amending its regulatiorui at the

• present time to coincide, as statutorily required. with the increase in the level of the primary layer of insurance provided by private nuclear liability insurance pools.

EFFECTIVE DATE: May l, 1979. FOR FURTIJER INFORMATION COffTAcr. Mr. Ira Dinitz, Antitrust and Indemnity Group, U.S. Nuclear Regulatory CommiBBion, Washington. DC 20555. (Phone: 301-49~36). SUPPLEMENTARY INFORMATION: The provisions of Section 170 of the Atomic Energy Act of 1954, as amended. (the Act) require production and utilization facility licensees to have and maintain financial protection to cover public liability claims resulting from a nuclear incident. Section 170 of the Act, requires the Nuclear Regulatory CommiBBion to indemnify the licensee and other persons indemnified, up to the statutory limitation on liability, against public liability claims in exceBS of the amount of financial protection required. Subsection 170b. of the Act requires that for facilities designed for producing substantial amounts of electricity and having a rated capacity of 100 electrical megawatts or more, the amount of financial protection 1 required shall be the maximum amount available from private sources. For other licensees, the Commission may require leBSer 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. liability insurance. American Nuclear Insurers (ANI) and Mutual Atomic Energy Liability Underwriters (MAELU), have advised the Commission that effective January 9.. 1979, the maximum amount of primary nuclear energy liability insurance available was increased from $140 million to $160 million. Pursuant to the provisions of subsection 170b. of the Act. thl amount of primary financial protection required for facilities having a rated capacity of 100 electrical megawatts or more will be increased to $160 million, effective May l, 1979. In addition, in compliance with 10 CFR Part.140, those persons licerised to posseBB plutonium in the amount of S. kilograms or more and persons licensed to process plutonium in the amount of 1 kilogram or more for use in plutonium. process~ and fuel fabrication plants will also be required to provide financial protection in the amount of $160 million. Since the amendments set out below conform the CommiBBion's regulations to a statutory requirement, the Commission has found that good cause exists for omitting a value/impact analysis, pu~lic 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. 1 The Act d11et1 DOI by Ill pl'llcllNI 18l1111888 require maintenance of a "primary" (i.e., nuclear liability IJllurance) layer and a "aacondary" [l.e., retrospective premlum) layer of financial protection but merely comlden the combination of theee two layen a1 "financial protection." However, 10 CFR Part 140. of the Commi11lon'1 regulatlon1 that implement the AcL dl1tlngul1he1 between Iha primary and eecondary layen of financial protection. The amendmenll ln thla rule relate 10lely to tncreuea ID Iha primary layer of flnuclal protection. and sections 552 and 553 of Title 5 of the United States Code, the following amendments to Title 10, Chapter I. Part 140, Code of Federal Regulations, are published as a document subject to codifies ti on. § 140.11 [Amended]

1. Section 140.ll(a)(4) is amended by deleting $140,000,000" and substituting therefor "$160,000,000."

§ 140.13a [Amended]

2. Section 140.13a(a) is amended by deleting the term $140,000,000" and substituting therefor $160,000,000."

§ 140.11 [Amended]

3. In I 140.91, Appendix A. Condition

. 4 is amended by revising the footnote to read as follows: "For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be "$124,000,000"; for policies issued by Mutual Atomic Energy Liability Underwriters, the amount will be $36,000,000."

4. In I 140.91, Appendix A. paragraph m of the "Optional Amendatory Endorsement" is amended by revising the footnote to read as follows:

"For policies issued by Nuclear Energy Liability-Property Insurance Association . the amount will be $124,000,000"; for policies iBSued by Mutual Atomic

• Energy Liability Underwriters the amount will be "$36,000,000."

§ 140.92 [Amended]

• 5. Section 140.92. Appendix B. Article

n. paragraph S(a), is amended by deleting the amount $108,500,000'.'.

wherever it appears and sub(!titullilg therefor $124,000,000."

6. Section 140.92, Appendix B. Article

n. paragraph S(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. Article

n. paragraph S(c), is amended by changing the amount $140,000,000" to

$160,000,000...

8. Section 140.92, Appendix B. Article

m. paragraph 4(b)(2), is amended by changing "$140,000,000" to

$160,000,000... f 140.93 [Amended]

9. Section 140.93, Appendix C, Article ll. paragraph 8, ts amended by changing

"$140,000,000" to $160,000,000."

10. Section 140.93, Appendix C, Article

m. paragraph 4(b)(2), is amended by changing "$140,000,000" to

$160,000,000...

Federal Ralr I Vol. 44. N~. 68 / Friday, April 6. 1979 / Rule'd Regulations

• 20633

§ 140.94 [Amended] FEDERAL DEPOSIT INSURANCE

11. Section 140.94, Appendix D. Artiele *coRPORATION II. paragraph 6. is amended by changing

"$140,000.000" to "$160.000.000." 12 CFR Parts 307 and 327 § 140.95 [Amended]

12. Section 140.95. Append.ix E. Article

m. paragraph 4(b)(2). is amended by changing "$140.000.000" to

"$160,000,000." § 140..107 [Amended] i,

13. Section 140.107, Append.ix G. * ~'

Article II. paragraph 6(a), is amendedJhy deleting the amount "$108,500,000" wherever it appears and substituting therefor $124.000,000."..

14. Section 140.107, Append.ix G, Article II. paragraph 6(b), is amended by deleting the amount "$31,500,000"

• wherever it appears and substituting therefor. "$36,000,000."

15. Section 140.107. Append.ix c'.

Article m. paragraph 6(c), is amended by changing the amount $140.000,0oo" to $160,000,000."

16. Section 140.107, Appendix G, Article m. p~agraph 4(b), is amended by changing the amount $140.000,000" to $160.00!).000."

§ 140.. 108. [Amended]

• 17. Section 140.1oa. Append.ix G.

Article IL paragraph 6, is amended by changing the amount $140,000,000" to $160.000,000. '.'.

18. Section 140.lOa, Appendix H, Article m. paragraph 4(b'), is amended by changmg the amount $140,000,000" to $160,ooo.ocio."

EFFECTIVE DATE: The foregoing amendments.be'ci>me* effective on May 1. 1979. (Secs. 161, Pub:L* 63-703. 68 Stat. 948'(42 U.S.C. 2201); Sec. 110; Pub. L ~256. 71 Stat 576. Pub. L. -~197; 69 Stat 1111 (42 U.S.C. *. 2210); Sec. 201. Pub. L. 93-438. as amended. 88 Stat1242. 89 Stat 415 (42 U;S.C. 5841J) Dated at Washington. D.C.. this 2nd day of April 1979.. For the Nuclear Re8ulatofy Commission. Samuel J. Cllilk. ~of lht1 Commiuian: (FR Doc. ~IOBl53 Filed 4-$-711: 11:4& am( lllWMO COOE 7590-01-11 Aasumptlon and Assessment of DepoSit Uabllltles of Insured Banks; Voluntary Termination of-Insurance Status AGENcY: Federal Deposit Insurance

• Corporation.

ACTION: Final rule. .j SU11¥~V:~The Federal Deposit Insurance Corporation has decided to revise and amend§§ 307.3 and . 327.2(b)(3) of its regulations to: (1)

• iritplement Sections 304 and 310 of the Financial mstitutions Regulatory and mterest Rate.Control Act of 1978 (FIRIRCA) which pertain to the assumption and assessment of deposit liabilities of insured oaµks. and (2) correct an inaccurate reference.

EFFECTIVE DATE: April 6, 1979. FOR FURTHER INFORMATION CONTACT: Jerry L. Langley, Senior Attome*y. Federal Deposit msurance Corporation. 55017th Street. N.W., Washing1on. D.C;' 20429. telephone (202) 389-4237. SUPPLEMENTARY INFORMATION: Section 304 of FµURCA amends Section 8(qJ of the Federal Deposit msura,nce Act (FOi Act) to provide that whenever the deposit liabilities of an insured bank are !fSSumed by another insured bank.

• whether by merger, consolidation. or other statutory assumptjon, or by contract: (1) the insured status of the bank whose depositS are assumed.shall tenillnate on the date the *corporation receives satisfactory evidence of the
• assumption; (2) the separate insurance of all insured deposits so assumed shall terininate six months after the date the:
• assumption takes'effect.or, in the case of any ~e depos~t. the.earij_est maturity Q.ate,after ~e six-month period: and (3) th~ continuing bank shall give notice of the assumption to the depositors of the bank who~e deposits are assumed within 30 days after the assumption takes effect section 307.3 has been '

revised to implement these provisions and to correct an.incorrect citation by changing the reference"§ 304.3 (s) and (t)" in S_ection 307.3(b) to "§ 304.3 (u) and (v)". Section 310 of FIRIRCA amends Section 7 of the FOi Act to exclude depos_its accumulated for the repayment of personal loans from the definition of. deposits for insurance assessment purposes. Section 327 2(b)(J) of FDIC's.. regulations has been amended to aluie

• its definition of the term "deposit" for assessment purposes with that of.

Section 31:0 of FIRIRCA. Since the changes are procedural in nature or necessitated by statutory amendment. the Board of Directors of the Federal Deposit Insurance

• Corporatfon has determined. under Section 302.6 of its rules and regulations (12 CFR l 302.6). *that notice of. and public participation in, this rulemaking is unnecessary and that good cause exists for_ the waiver of the 30-day deferral of the effective date for the changes.

Accordingly, 12 CFR 307.3 and 327.2 subparagraph (b) are changed as follows: PART 307-VOLUNTARY TERMINATION OF INSURANCE STATUS

1. 12 CFR 307.3 is revised to read:

§ 307.3 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 *b~- shall. give notice of the assumption to the depositors of the bank .

• whose deposits are assumed within 30 '

days after the assumption takes effect.* Such notice shall be (1) mailed to each depositor at the depositor's last addresa 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 sdviried that the deposit liabilities shown on the books of (Name of Assumed Bank) (City or town) (State) -- as of close of business on---, 1~ have been assumed by the undeniigned bank. The insured status of (Name of asll1ll!led bank) will terminate at the-time provided in section. 6(qj of the Federal Deposit Inswimce Act The separate insurance of itll depositll 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 undersigrled bank is an insured bank and that your deposits will continue to be insured by the Federal Deposit Insurance Corporatio.n in the manner and to the extent provided in said Act [Name of Bank)------ (Address)------ There may be included in such n~tice any additional information or advice the bank may deem desirable. ~e notjce requirement doea not apply*to "phantom" bank mergers ao defined in footnote 211 of Section 303.11(a)(9).

. ~ I 7~-~,~~~F~e;d;;;e~ra;;l~R;egi;;'~st;e~r ~/~*~;;* ~44~. ~N~o~. ~-~~* *~/~T~ue;;s~d~a~y~. ~A~p~ri~l ~2~~:~*~;9~, 7~9~* *~*, 1~~le~s~an~d~. ~R~e~g~ul~a~ti~o~n~s ~~~2~404~5 NUCLEAR REGULATORY COMMISSION 10 CFR Part 140 Financial Protection Requirements and

• Indemnity Agreements; MisceHane0us Amendments Correction In FR Doc. 79-10853. appearing at page 20632. in the issue of Friday, April

6. 1979, on page 20633: make the following corrections:

(1) In the first column in paragraph 15. in the second line, correct "Article Ill" to read "Article II". (2) In paragraph 17, in the first line. correct *'Appendix G" to read "Appendix H". BIWNG CODE 1505-01-M DEPARTMENT OF ENERGY 10 CFR Part 205 Administrative Procedures and Sanctions; 1979 Interpretations of the General Counsel AGENCY: Department of Energy. ACTION: Notice of Interpretations.

SUMMARY

Attached is the lnterpretatiori issued by the Office of General Counsel of the Department of Energy under 10 CFR Part 205, Subpart F. during the period March 1, 1979, through March 31, 1979.

Appendix B identifies those Requests for Interpretation which have been dismissed during the same period. FOR FURTHER INFORMATION CONTACT: 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" to 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 (Feoruary 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.B4(a)(ZJ) and may be rescinded or modified at any time ( § 205.85( d)). Only the persons to whom Interpretations are addressed and other persons upon whom Interpretations are served ate entitled to rely on them(§ 205.85(c)). An Interpretation is modified by a subsequent amendment to the regulatjon(s) or ruling(s) interpreted thereby to the extent that the. Interpretation is inconsistent with the amended regulation(s) or ruling(s) (§ 205.85(e)). The Interpretations published below are not subject lo appeal. Issued in Washington. D.C., April 10. 1979.

• Everard A. Maneslia. Ir.

Assistant General Coansel for fnterpretation1 and Ruliap. O.~fice ot' Generai Coun.el. -. Appendix A-lnterpretationa No. To Date FtieNo. 1919--03,_.............................. Sinclair Oil Corporabon.".... _,_...,-.............. -. Marcil 5................ -.*. F'llce............... -.......... A-349 lnterpretation 1979-5 To: Sinclair Oil Corporation Regulation Interpreted: 10 CFR 210.62(a) Code: GCW-Pl-Nonnal business practices Facts The Sinclair Oil Corporation. a small and independent refiner subject to 10 CFR Part 212. Subpart E, markets petroleum products through its subsidiary. Sinclair Marketing, Inc. !Sinclair). Since May 1973. Sinclair'~ standard contracts with jobbers and dealers for the sale of motor gasoline have required pavment in full within 30 days. Payment in full within 10 days has entitled a purchaser to a 1 percent discount on the purchase price. Sincluir has considered an account outstandin~ for more than 30 days to be in default anci subject to suit. In that instance. collection costs would be assignable to the account. {\\t the present time. Sinclair desires to modify its standard contracts for-the sale of motor gasoline to require a finance charge of one and one-half (1}12) percent monthly on the balance of all accounts not paid within 30 days. No other credit tenns are to be changed. Issue Does Sinclair's proposal to assess a finance charge on all d'elinquent accounts constitute the imposition of a more stringent credit term than the credit terms in effect on Mav 15. 1973. within the meaning of 10 CFR 2l0.62(al? !nterpretacioh For the reasons set forth below. ~he Department of Energy (DOE] has detennined that Sinclair's inclusion of a 1 "* percent monthly finance charge on ail accounts not paid within 30 days in its standard contracts for the sale of motor gasoline would constitute the imposition of a more stringent credit term than the credit terms in effect on Mav 15. 1973. in violation of§ 210.62(a). The General Allocation and Price Rules. set forth at 10 CFR Part 210 and adopted on January 14. 1974. 39 FR 19Z4 (January 15. 1974). were intended to set forth the provisions applicable to both the Mandatory Petroleum Allocation Regulations (10 CFR Part 211) and the 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 {EPAAJ. as amended. Pub. L No. 93-159 [November 'Z7, 1973). 1 Section 210.62(a) regulates credit terms as a function of price in recognition of the varying roles that credit and other conditions of sale play in the now of product.' Section 210.62(a) provides in relevant part: "'Suppliers will deal with purchasers of an allocated product according to nonnal business practices in effect during the base period specified in Part 211 for that allocated product. and no supplier may modify any nonnal business practice so as to result in the circumvention of any provision of this chapter.... Credit terms other than those . associated with seasonal credit programs are included as a part of the May 15. 1973'p.rice charged to a class of purchaser under Part 212 of this Chapter. Notring in this paragraph shall be construed to require suppliers to sell to purchasers who do not arrange proper credit or payment for allocated products, as customarily associated with that class of purchaser... on May 15. 1973.... However, no supplier may require or impose more stringent credit tenns or payment schedules on purchasers than those in effect for that class of purchaser... on May.15. 1973.... - According to the facts presented by. Sinclair. neither at the present time nor on '15 U.S.C. 751 er seq. [1976). 'Since the decision by the Temporary Eme~cy Court of Appeals in Marathon Oil Co. v. FE..J,. 547 F.2d 1140 (TECA 1976). there can be no doubt concerning the authority of the Federal Energy Administration (FEA) and its successor. the DOE. to regulate credit terms incident to the mandatory petroleum price regulations. ln addition. the DOE has resolved issues similar to the one presented by Sinclair. concerning whether changes in credit tenns are pennissible in view of the provisions of § 210.62[a). See Exxon Company. U.S.A.. 2 DOE ,80.150 (October 28. 1978); Crystal Oil Ca.. 1 FE.A ,Z0.161 (October 8. 197-4). In Oil Transit Corp.. Interpretation 1977-35. 42 FR 54269 (October 5. 1977). the DOE found that requiring purchasers of motor gasoline to incur for the first time the additional cost of obtaining letters of credit guaranteeing payment to Oil Transit would have the effect of imposing a more *tnngent credit tenn '.han the credit tenns-in effect on Mav 15. 1973. in violation of§ 210.62(a I. However. the DOE has not previously considered a case such as the present one where the proposed chan~e,n credit '.erms would appiy oruy after the purchase price io due 'n fuil.}}