ML17317B177
| ML17317B177 | |
| Person / Time | |
|---|---|
| Site: | Cook  |
| Issue date: | 05/01/1979 |
| From: | Saltzman J Office of Nuclear Reactor Regulation |
| To: | Tillinghast J INDIANA MICHIGAN POWER CO. |
| References | |
| NUDOCS 7905140481 | |
| Download: ML17317B177 (7) | |
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Docket Nos.
50-315 50-316 UNITEDSTATES NUCLEAR REGULATORYCOMMISSION WASHINGTON, D. C. 20555 879 gAY 1 uggoRy DOC'(i'lLE C Indiana 8 Michigan Power Company ATTN:
Mr. John Tillinghast Vice President P. 0.
Box 18 Bowling Green Station New York, New York 10004 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
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Docket Nos.
50-315 50-316 i
UNITED STATES 1
NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 t
r r
ytt AMENDMENT TO INDEMNITY AGREEMENT NO.
B-61 AMENDMENT No.
9 r rt Effective May 1, 1979, Indemnity Agreement No. B-61, between Indiana and Michigan Power Company and Indiana and Michigan Electric Company-and the Atomic Energy Commission, dated May 26, 1972, as
- amended, is hereby further amended as follows:
The amount
"$140,000,000" is deleted wherever it appears and the amount
"$160,000,000" is substituted therefor.
The amount "$108,500,000" is deleted wherever it appears and the amount "$124,000,000" is substituted therefor.
The amount
"$31,500,000" is deleted wherever it appears and the amount "$36,000,000" is substituted therefor.
Item 2a of the Attachment to the indemnity agreement is deleted in its entirety and the following substituted therefor:
Item 2 - Amount of financial protection a.
$1,000,000
$110.000,000
. $125,000,000 (From 12:01 a.m.,
May 26, 1972, to 12 midnight, October 24, 1974, inclusive)
(From 12:Ol a.m.,
October 25, 1974, to 12 midnight, March 20, 1975, inclusive)
(From 12:01 a.m.,
March 21, 1975, to 12 midnight, April 30, 1977, inclusive)
~
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/
t, t'
$140,000,000" (From 12:01 a.m.,
May 1, 1977, to 12 midnight, April 30, 1979, inclusive)
$160,000,000" (From 12:01 a.m.,
May 1, 1979)
FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION Jerome
- Saltzman, Chi Antitrust 8 Indemni y Group Office of Nuclear Reactor Regulation Accepted
, 1979 By INDIANA AND MICHIGAN POWER COMPANY Accepted
, 1979 By INDIANA AND MICHIGAN ELECTRIC COMPANY
- and, as of August 1, 1977, the amount available as secondary financial protection.
Federal Register / VCL 44, No. 88 / Friday, April 8, 1979 / Rules and Regulattonc This document has been reviewed in accordance with FmHA Instruction 1901-G, "Environmental Impact Statements." lt is the determination of FmHA that this action does not constitute a major Federal action significantly affectmg the quality of the human environment and in accordance with the National Environmental Policy of 1969, Pub. L 91-190, an Environmental Impact Statement is not required.
Authorities: (42 US.C 1480; delegation of authority by the Secretary of Agricultuie, 7 CFR 223: delegation of authority by the Assistant Secretaiy for Rural Development. 7 CFR 2.70)
Dated: March 30. 1979.
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OIL1wo coDE sciooMI NUCLEAR REGULATORY COMMISSION 10 CFR Part 140 Financial Protection Requirements and Indemnity Agreements; Miscellaneous Amendments AQENOY: U.S. Nuclear Regulatory Commission.
AOTIONI Final Rule, suMMARY: The provisions ofSection 170 of the Atomic Energy Act of 1854. as amended, require production and utilization facility licensees 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 certain 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 nuclear liability insurance pools.
EFFEOTIvE oATE: May 1. 1879.
~
FOR FURTIIER INFORMATIONCONTACT.
Mr. Ira Dinitz. Antitrust and Indemnity Group, V.S. Nuclear Regulatory Commission. Washington, DC 20555.
(Phone: 301&92-8336).
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 liabilityclaims 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 liabilityclaims in excess of the amount of financial protection required.
Subsection 170b. of the Act requires that for facilities designed for producing substantial amounts of electricity and
'aving a rated capacity of 100 electrical megawatts or more, the amount of financial protection 'equired shall be the maximum amount available from private sources. For other licensees, the Commission may require lesser amounts of financial protection: Primary financia 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 liabilityinsurance available was increased from $140 million to $160 million. Pursuant to the provisions of subsection 170b.,of the Act, the amount of primary financial protection required for facilities 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 plutonium in the amount of5,.
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 $180 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 1874, as amended,
'he hci does noi by lis predse language requhe maintenance of c "pnmary" ihe. nudear ttcbltity insurance) layer end e "secondary" ii,e senospcctive premium) layer of fincndcl piotccuon but merely considers ihc combinciion of these iwo lcycrs as "financial protection." However. 10 CFR Part ice. of the Conunission's regulations that impiement the Aci. distinguishes between the piimcry and secondary tcyers of financial piolccuon. The amendments in this nde relate solely io increases in the pnmary layer of finandcl protecuon.
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.
$ 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
[Ainendod)
- 2. Section 140.13a(a) is amended by deleting the term '$140,000,000" and substituting therefor "$160,000,000."
4 14081
[Amendodl
- 3. In 5 140.91, 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 willbe
"$38,000 000 "
- 4. In 5 140.91, 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 willbe "$124.000,000'"I for policies issued by Mutual Atomic Energy LiabilityUnderwriters the amount willbe '$38,000,000."
g 140.02
[Amendodi
'. 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 140.92. Appendix B, Article G. 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, Article II, paragraph 8(c), is amended by changing the amount "$140,000.000" to
$160,000,000."
L Section 140.92, Appendix B, Article III.paragraph 4(b)(2), ls amended by changing "$140.000.000" to
"$160,000,000."
5 140.03
[Amended)
- 9. Section 140.93, Appendix C, Article 0, paragraph 8, is amended by changing
"$140,000,000" to "$160,000,000."
- 10. Section 140.93. Appendh C. Article III.paragraph 4(b)(2), is amended by changing "$140,000,000" to
"$160,000,000."
Federal Register / Vol. 44. No. 88 / Friday. April 8, 1979 / Rules and Regulations II 140.94 IAmendedl
- 11. Section 140.94. Appendix D, Article II. paragraph 8, is amended by changing
"$140,000.000" to "$180,000,000."
II 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."
$ 14IL107
[Ameadedl
- 13. Section 140.107, Appendix G.
-A Article II, paragraph 8(a), is amended by deleting the amount "$108,500,000" wherever it appears and substituting therefor "$124.000,000."
- 14. Section 140.107. Appendix G.
Article II, paragraph 6(b), is amended by deleting the amount "S31,500.000" wherever it appears and substituting therefor "$36.000,000."
- 15. Section 140.107. Appendix G, Article III.paragraph 8(c), is emended 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 changing the amount "$140.000,000" to "$160,000.000."
i) 14ft108
[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 III,paragraph 4(b), is amended
'y changing the amount "$140.000.000" to "$160,000,000."
EFFEcTIYE DATE:The foregoing amendments become effective on May 1.
1979.,
(Secs. 181. Pub. L 83-703, 88 Stat. 948 (42 U.S.C. 2201): Sec. 170. Pub. L 85-258, 71 Stat.
578. Pub. L 94-197, 89 Slat. 1111 (42 US.C.
2210); Sec. 201. Pub. L 93-438. ai amended, 88 Stat.124?
89 Stat 415 (42 U.S.C. 5841))
Dated at Washhgtoa, D.C. ibis 2nd day of April1979.
For the Nuclear Regulatory Commission.
Sasswl f. aelk.
Secrecy ofshe Cooeoiseioa (FR ooc. is toaaa Filed~tLlkas am I FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Parts 307 and 327 Assumption and Assessment of Deposit IJablllties of Insured Banks; Voluntary Termination of4nsuranco Status AQENcY: Federal Deposit Insurance Corporation.
ACTtON: Final rule.
sUMMaRY:+he Federal Deposit Insurance Corporation has decided to revise and amend 5I) 307.3 and 327.2(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 DATRApril6, 1979.
FOR FURTHER INFORMATlONCONTACT:
Jerry L Langley. Senior Attorney.
Federal Deposit Insurance Corporation, 550 17th Street. N.W.. Washington. D.C.
20429, telephone (202) 389-4237.
SUPPLEMENTARY INFORMATlONiSection 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 the 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 3072 has been revised to implement these provisions and to correct an incorrect citation by changing the reference "I) 304.3 (s) and (t)" in Section 307.3(b) to "il304.3 (u) and (v)".
Section 310 of FIRIRCA amends Section 7 of the FDI Act to exclude deposits accumulated for the repayment of personal loans from the definition of deposits for insurance assessment purposes. Section 3272(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 302.8 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 3May deferral of the effective date for the changes.
Accordingly. 12 CFR 307.3 and 327.2 subparagraph (b) are changed as follows:
PART 307VOLUNTARY TERMINATIONOF INSURANCE STATUS
- 1. 12 CFR 307.3 is revised to read:
$ 3074 Steps to be taken and records to be furnished the Corporation where deposfts 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.'uch notice shall be (1) mailed to each depositor at the depositor's last address ofrecord 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)
Notfce to Depositors:
Please be advised that the deposit liabilities shown on the books of (Name of Assumed Bank)
(City or town)
(State) as of close of business oa
~ 19have been assumed by the undersigned bank The hsured status of (Name of assumed bank) willtermhato at the. time provided In section 8(ql of the Federal Deposit Insurance Act.
The separate Insurance ofIts deposits will therefore teradaaie at the ead of six months from the above date or. ia the case of a time deposit, the eartfest maturity date after the six-monih period.
You are advised that ihe uadersfgaed bank is an insured bank and that your deposits will continue lo be insured by the Federal Deposit Insurance Corporation la the manner and to the extent provided Ia said Act.
(Name of Bank)
(Address)
There may be included in such notice any additional information or advice the bank may deem desirable.
'Ihe notfce requirement does not apply to "phantom" bank mergers aa defined ln fooinote sa of section 30s.tits)IQ).
0 Federal Register /Mol. 44. No. 80 / Tuesday. April 24, 1979 / Rules and Regulations 24045 NUCLEAR REGULATORY COMMISSION 10 CFR Part 140 Rnanclal Protection Requirements and Indemnity Agreements; Miscellaneous Amendments Coneclion 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 "ArticleIII"to read "ArticleII".
(2) In paragraph
- 17. in the first line.
correct "Appendix G-to read
-Appendix H".
SSL1iSSO CODE 150~i M DEPARTMENT OF ENERGY 10 CFR Part 205 Adminlatrat(ve Procedures and Sanctions; 1979 Interpretations of the General Counsel AGENcY: Department of Energy.
ROT)oN: Notice of Interpretations.
sUMMARY: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 1, 1979. through March 31, 1979.
Appendix B identifies those Requests for Interpretation which have been dismissed during the same period.
FOR FURTHER INFORMAT)ONCONTACl.
Diane Stubbs. Office of General Counsel. Department of Energy, 12th &
Pennsylvania Avenue NW., Room 1121, Washington, D.C. 20461 (202) 633-9070.
SUPPLEMENTARY )NFORMATION:
Interpretations issued pursuant to 10 CFR Part 205, Subpart F. are published in the FederaI Register in accordance with the editorial and classification
'riteria set forth in 42 FR 7923 (February
- 8. 1977), as modified in 42 FR 46270 (September 15. 1977).
These Inter'pretations 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 (ii 205.85(d)). Only the persons to whom Interpretations are addressed and other persons upon whom Interpretations are served are entitled to rely on them (ii 205.85(c)). An Interpretation 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)
($ 205.85(e)). The Interpretations published below are not subject to appeal.
Issued in Washington. D.C., April10, 1979.
Eveeeni A. Merseslie. )s Assisioni General Counsel for Inseasresanons ond RulinSs Orfien or General Counsel.
for the sale of motor gasoline would constitute the imposition of s more stringent credit term than the credit terms in effect on May 15. 1973. in violation of I 210.62(s).
The General Allocation snd Price Rules. sci forth at 10 CFR Part 210 snd adopted on January 14. 1974. 39 FR 1924 (January 15.
1974). were intended to set forih the provisions applicable to both the Mandatory Petroleum Allocation Regulations (10 CFR Part 211) snd the Mandatory Petroleum Price Regulations (10 CFR Patt 212). The allocation snd price regulations were adopted to.
implement the statutory insndste of Section 4(s) of the Emergency Petroleum Allocation Act of 1973 (EPAA). as amended. Pub. L No.93-159 (November,"7.
1973).'ection 210.62(s) regulates credit terms as s function of price in recognition of the vsrymg roles that credit snd other conditions of sale play in the Ilaw of product.'Section 210.62(s) provides in relevant part:
"Suppliers willdeal with purchasers of an allocated product according io normal business practices m effect during the base period specified in Part 211 for that allocated product. snd no supplier msy modify any normal business practice so as to result in the circumvention of any provision of this chapter.... Credit teims other than those associated with seasonal credit programs are included as 6 psit of the Msy 15. 1973 price charged to s class of purchaser under Part 212 of this Chapter. Not).ing in this paragraph shall be consirueii to require suppliers io sell to purchasers who do not arrange proper credit or payment for allocated products. as customarily associated with that class of purchaser...
on Msy 15.1973,...
However, no supplier msy require or Impose more stringent credit terms or payment schedules on purchasers thai those in effect for that class ofpurchaser...
on Msy 15.
1973....
According to the facts presented by Sinclair. neither st the present time nor on Appsndix A-Intcepecistions To 197%03 Inteiprststion 1979-5 Tol Sinclair Oil Corporation Begulatfan Inlerpreledl 10 CFR 210.62(s)
Cadcf GCWPiNormal business practices Facts The Sinclair Oil Corporation. 0 small snd independent refiner subject to 10 CFR Part 21". Subpart E. markets petroleum products through iis subsidiary. Sinclair Marketing.
Inc. (Sinclair). Since Msy 1973. Sine)sir'9 standard contracts with jobbers snd dealers for the sale of motoi gasoline have required payment in full within 30 days. Payment in full within 10 days hss entitled s purchaser to s 1 percent discount on the purchase price.
Sinclair hss considered an account outstanding for more than 30 days io be in aefsult snd sub)oct io suit. In that instance.
collection costs would be assignable to the account. At the present time. Sinds)r desires to modify its standard contracts for the sale of motor gasoline to require s finance charge of one snd one. half (1ys) percent monthly on the balance of sll accounts nat paid within 30 days. No other credit terms are to be changed.
Issue Does Sinclair's proposal to assess s finance charge on sll delinquent accounts constitute the imposition of s inore stringent credit term than the credit terms in effect on May 15.
1973. within the meaning of 10 CFR 210.62(s)?
InleTsrelalion For the reasons ssi forth below. the Department of Energy (DOE) hss aetermined that Sinclair's inclusion of s I Ms percent monthly finance charge on all accounts not psid within 30 days in its standard contracts seusse OS CoriNssuon Mesoii 5 Pnoe
'15 U.S.C. 751 el scq. I19T6).
'Since the decision by the Temporary Emergency Caun Of Appeale in hrarulhan Oil Ca V. FErL 547 F.2d 1140 ITECA 1976). there can be no doubt concerning the authority of ihc federal Energy Administration IFEA) snd tis successor.
the OOE. io regulate credit tcims incident io ihc mandatory pcuoicum price rcgutsuons. In sddnlon. thc OOE hss resolved issues simi)se to the one presented by Sino)sir. concerning whether chsngcs in credit tenne are pcrmissibtc tn view of the provisions of
$ 210.62(s). Sec Exxon Company. US.rL. 2 DOE
$NL150 (October 26. 19T6): Crystal OilCo, 1 FEA 120.161 (October iL 19T4), tn OilTiansit Casys, tnierprctsiion 19TT-35. 42 FR 54269 (October 5.
19TT). the DOE found that requiring purchasers of motor gasoline io incur lor ihc I)est umc the sddqionsi cost of obtaining icuces ol crcdn guaranteeing psymcn! to OilTransit would hsv c ihc effect oi imposing s more siringcni cscdn term than the credit teims-in effect on Msy i5, i9s3. in violation of I 210.62(sL However. the DOE hss not previously considered s case such ss:hc Fecseni one where the Fsoposcd change in credit terms wou)d apply only sn r i):c pumhasc Fncc is duc m fulL
4