ML19210A345

Forwards Amend 7 to Indemnity Agreement B-64,reflecting Change in Procedures Utilized by NRC to Recover Retrospective Premiums Paid by Govt on Behalf of Defaulting Licensees

ML19210A345
Person / Time
Site:	Crane
Issue date:	08/14/1978
From:	Saltzman J Office of Nuclear Reactor Regulation
To:	Arnold R METROPOLITAN EDISON CO.
References
NUDOCS 7910290577
Download: ML19210A345 (3)

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NUCLEAR REGULATORY COMMisslON 7

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AUG 14197Il Docket No.50-28P Metropolitan Edison Company Jersey Central & Light Company Pennsylvania Electric Company ATTN: Mr. R. C. Arnold Vice President P. O. Box 542 Reading, PA 19603 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 establishes procedures that the Commission would utilize to recover retrospective premium: 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.

Sincerely, fm&e 2@W:/^9 Jerome Saltzman, Chi.ef Antitrust & Indemnity Group Office of Nuclea,p' Reactor Regulation

Enclosure:

Amendment to Indemnity Agreement 1488 521

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c Docket Nos. 50-289 50-320 AMENONENT TO INDEMNITY AGREEMDIT NO. B-64

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AMENDMENT NO. 7 Effective August 1,1977, Ind'emnity Agreement No. B-64, between

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Metrcpolitan Edison Company, Jersey Centra' Power & Light Company, and Pennsylvania Electric Company, and the Atomic Energy Comission, dated December 11,1973, as amended, is hereby further ajaended by adding a new Article VIII to read as.follows:

" ARTICLE VIII l

"1.

If the licensee fails to pay assessed deferred premiums, the Comission reserves the right to pay those premiums on behalf i

of the licensee and to recover the amount of such premiums from the licensee...

"2.

The Comission shalT~ require the imediate submission c/

financial statements by those licensees who indicate, after an assessment of the retrospective premium by the insurance pools, that they wil.1 not pay the assessment. Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings. Subsequent sulnission of financial statements i

by such licensees may be requested by the Comission, as required.

"3.

If premies are paifby the Comission as provided in paragraph 1, payment by the Comission shall create a lien in the amount paid in favor of the ynited 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 Comiss. ton 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 Comission will issue a certificate of release of any such lien if it finds tha.t the liability for the amount has been fully satisfied or ha.s become legally unenforceable.

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If the Comission detemines that the licensee is financially able to reimburse the Comission for a deferred premium payment made in its behalf, and the lit:ensee, after notice of such determination by the Comission fails to make such reimbursoment within 120 days, the Comission will take appropriate steps to suspend the license for 30 days. The Comission may take any further action as necessary if reimbursement is rat made within the 30-day suspension period including, but not limited i

to, termination of the operating license."

i FOR THE UNITED STATES NUCLEAR REGULATORY ComISSION

/slJERCME S'd!ZMAN

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Jerome Saltzman, Chief Antitrust and Indemnity Group Office of Nuclear Reactor Regulation 7

~ Accepted 1978

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By METROPOLITAM EDISON COMPANY Accepted 1978 l

By JERSEY CENTRAL POWER & LIGHT COMPANY 1488 323 l

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By PENNSYLVAHIA ELECTRIC CJMPANY orrica w DATE M

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