ML19296B068
| ML19296B068 | |
| Person / Time | |
|---|---|
| Site: | 07002917 |
| Issue date: | 01/30/1980 |
| From: | Saltzman J Office of Nuclear Reactor Regulation |
| To: | |
| References | |
| B-89, NUDOCS 8002190824 | |
| Download: ML19296B068 (13) | |
Text
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s orcyb UNITED STATES e
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4 NUCLEAR REGULATORY COMMISSION 3
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j WASWNGToN. D. C. 2o555 s!
Docket No.70-2917 Indemnity Agreement No. B 89
.This Indemnity Agreement No. B 89 is entered into by and between s
Tennessee Valley Authority (hereinaf ter referred to as the " licensee") and the United States Nuclear Regulatory Cocmission (hereinafter referred to as the " Commission") pursuant to subsection 170c of the Atomic Energy Act of 1954, as a= ended (herein-after referred to as "the Act").
ARTICLE I As used in this agreement:
1.
" Nuclear reactor," " byproduct material," " person," " source caterial," and "special nuclear caterial" shall have the ceanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.
Except where otherwise specifically provided, "acount of finan-2.cial protection" ceans the amount specified in Item 2a and b, of the Attach =ent annexed hereto, as modified by paragraph 8, Article II, with respect to common occurrences.
3.(a) " Nuclear incident" means any occurrence, including an extra-the location ordinary nuclear occurrence, or series of occurrences at or in the course of transportation causing bodily injury, sickness, disease, or death, cr loss of or damage to property, or loss of use of property, arising out of or resulting from the radioactive, toxic, explesive, or other hazardous properties of the radioactive caterial.
(b) Any occurrence, including an extraordinary nuclear occurrence, or series of occurrences causing bodily injury, sickness, disease, or death, or loss of or damage to property, or loss of use of property,
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arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of 1.
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 other material 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 from "the location" as defined in any such other agreement, or
- 11. 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 of transportation shall be deemed to be a common occurrence.
A common occurrence shall be deemed to constitute a single nuclear incident.
4.
" Extraordinary 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.
"In the course of transportation" means in the course of transper-tation within the United States, or in the course of transportation outside the United States and any other nation, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:
(a) With respect to transportation 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 of such trans-portation to the location or temporary storage incidental thereto; (b) The transportation of the radioactive material from the loca-tion shall be deemed to end when the radioactive material is removed from the transporting conveyance for any purpose other than the con-tinuance of transportation or temporary storage incidental thereto; (c) "In the course of transportation" as used in this agreement shall not include transportation of the radioactive material to the B
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. location if the raterial is also "in the ceurse of transportation" entered from cny other " location" as defined in any other agree ent into by the Commission pursuant to subsection 170c cr k of the Act.
" Person indennified" ceens the licensee and any other person 6.who =ay be liable f or public liability.
of or "Public liability" means any legal liability arising out 7.
except (1) clai=s under State or resulting from a nuclear incident, Federal Workmen's Compensation Acts of empicyees of persons indemni-the location or, if the nuclear incident fled who are employed (a) at occurs in the course of transportation of the radioactive caterial, on the transporting vehicic, and (b) in connection with the licensee's (2) claims possession, use or transfer of the radioactive caterial; of war; and (3) clai=s for loss of, or damage arising out of an act the location to, or less of use of (a) property which is located at and used in connection with the licensee's possession, use, or trans-fer of the radioscrive caterial, and (b) if the nuclear incident dioactive =aterial, occurs in the course of transportation of the I the transporting vehicle, containers used in suc1 transportation, and the radioactive caterial.
4 of the "The location" means the location described in Ite:
8.
Attachment hereto.
9.
"The radicactive raterial" reans source, special nuclear, and byproduct caterial which (1) is used or to be used in, or is ir-radiated or to be irradiated by, the nuclear reactor or reactors to the license or licenses designated in the Attach =ent.
subject hereto, or (2) which is produced as the result of operation of said reactor (s).
" United States" when used in a geographical sense includes all 10.
Territories and possessions of the United States, the Canal Zone and Puerto Rico.
ARTICLE II At all times during the ters of the license or licenses desig-1.nated in Ite 3 of the Attach:ent hereto, the licensee wili taintain 2 of the Attach-financial protection in the amount specified in Ite cent and in the form of the nuclear energy liability insurance policy
.B
4-If core than one license is designated designated in the Attachment. the licensee agrees to mainta:n auch
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in Ite: 3 of the Attachment, license which financial protection until the end of the ter= of thatThe licensee shall, notw to expire.
suspension or revo-will be the last expiratzen, terzination, codification, atendment, 3 of the Attach-cation of any license or licenses designated in Ite:caintain such active cater:al has been removed from the location and transpo:tation
- cent, of the radioactive caterial from the location has ended aa def ned subparagraph 5(b), Article I, or until the concissica authorizes the Ihe ter:1 nation or the codification of such financial protect:ca C02:!ssion will not unreasonably withhold such author 1 ration.
of any pay =ent by the insurer or insurers under a policy or policies specified in Ite= 5 of the Attach ent hereco.which 2.
In the event of such policy or policiea below the a ount reduces the aggregate li=it of financ:al protection, the licensee will promptly apply to his insurers for reinstatement of the arount specified in Ita= 2a of th that.the licensee has (without In the event efforts to obtain such reinstatement.
obtained reinstardment of such amount within ninety days after the date of such reductica, and in the. absence of good cause shcun.to r.ns not contrary, the Co : ssion may issue an order requiring the 12.cer.see to in another fo::-
furnish financial protection for such amount of the Any obligations of the licensee under subsection 53a(8)blic 3,
to indemnify the United States and the Concissacn irca pu liability, together with any public liability satisfied by the in-Act surers under the policy or policies designated in the Attachment in the aggregate exceed the a tunt of financial hereto, shall not to any nucicar :nc: dent, intluding the reason-prote:t:on with respectable costs of investigating and settling clains and defend for damage.
to any extraordinary nuclear o::uzzence co which thia applies, the Ccanission, and the licensee on behalf of 2tself With respect 4
and other persons indemnif:ed, insofar as their interes:s appear, ea:.h agreement agree to waive of the claisant or (a) any issue or defense as to the conduct fault of persons indernified, including, but not 1:=ited to D
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(1) negligence; (2) contributory negligence; (3) assu=ption 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 coi iuct of persons through whom the clai. ant derives his cause of action; (b) any issue or defense as to charitable or governmental i=munity; (c) any issue or defense based on any statute of limitations if is instituted within three years from the date on which the suit claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof, but in no event more than 20 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 ray otherwise be dee ed jurisdictional or relating to an element in the cause of action.
The waivers shall be judicially enforceable in accordance with their terns by the claisant against the person indemnified.
The waivers set forth in paragrarh 4 of this Article:
5.
(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 claicant or to a
' claimant's property which is intentionally sustained by the clairant or which results from a nucicar incident intentionally and wrong-fully caused by the clairant;.
(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 woriren's com-pensation or occupational disease law: Provided, however, That with the to an extraordinary nuclear occurrence occurring at respect facility, a claimant who is e= ployed at the facility in connection
.B D
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6-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:
is e= ployed exclusively in connection (1) the claimant with the construction of a nuclear reactor, including all related equipment and installations at the facility, and no operating license has been issued by the NRC with (2) respect to the nuclear reactor, and employed in connection with the is not (3) the clairant storage, use or transfer of nuclear material possession, at the facility.
shall not apply to any claim for punitive or exemplary to any. claim for wrongful death (d) damages, provided, with respect under any State' lav which provides for damages only punitive in that the app'.y to the extent nature, this exclusion does not clainant has sustained actual dacages, reasured by the pecuniary to exceed the maxfrum injuries resulting fro-such death but not amount otherwise recoverable under such law; to those obligations (e) shall be effective only with respect set forth in this agreement; apply to, or prejudice the prosecution or defense (f) shall not of, any claim or portion of claim which is not within the pro-of liability provisio (1) the limit tection afforded under subsection 170e of the Atonic 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.
The obligations of the licensee under this agreement shall to nuclear incidents occurring during the 6.
apply only with respect term of this agreement.
Upon the expiration or revocation of any license designated 7.
the Commission will enter into an in Item 3 of the Attachment,of this agree =ent with the licensee reducing appropriate amendmentof financial protection required under this Article; the licensee is then entitled to a reduction in the the arount provided, that amount of financial protection under applicable Cornission regulations and orders.
D 8.
With respect to any common occurrence:
(a)
If the sum of the limit of liability of any Nuclear Energy Liability Property Insurance Association policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such co= mon occurrence and issued by Nuclear Energy Liability Property Insurance Association exceeds $124,000,000, the amount of finencial protection specified in Item 2a and b of the Attachment shall be deemed to be reduced by that proportion of the dif ference between said sum and $124,000,000 as the limit of liability of the Nuclear Energy Liability Property Insurance Association 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 Nuclear Energy Liability Property Insurance Association.
(b)
If the sum of the limit of liability of any Mutual Atomic Energy Liability Underwriters policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters exceeds $36,000,000, the amount of financial protection specified in Item 2a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and
$36,000,000 as the limit of liability of the Mutual Atomic Energy Liability Underwriters policy designated in Itca 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 Underwriters; (c)
If any of the other applicable agreements is with a person who has furnished financial protection in a -form other than a nuclear energy liability insurance policy (facility form) issued by Nuclear Energy Liability Property Insurance Association or Mutual Atomic Energy Liability Underwriters, and if also the sum of the amount of finan-cial protection established under this agreement and the amounts of financial protection established under all other applicable agreements exceeds an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection, the obligations of the licensee shall not exceed a greater proportion of an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection than the amount of financial protection established under this agreement bears to the sum of such amount and the amounts of financial protection established under all other applicable agreements.
B
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. As used in this paragraph 8, Article II, and in Article III, (d) entered into "other applicable agreements" ccans each other agreement to subsection 170c of the Act in which by the Commission pursuantthe nuclear incident is defined as a "ccmmon occurrence."
agrecaent As used in this paragraph 8, Article II, "the obligations of the licensee" means the obligations of the licensee under subsection to indennif y the United States and the Cornission 53e(8) of the Act from public liability, together with any public liability satisfied by the insurers under the policy or policies designated in the and the reasonable costs of investigating and settling Attachment, claims and defending suits for damage.
The obligatiens of the licensee under this Article shall not be 9.
of the Cemmission or affected by any failure or default on the part the Government of the United States to fulfill any or all of its obligations under this agreenent. Bankruptcy or insolvency of any person indemnified other than the licensee, or the estate of any person indennified other than the licansee, shall not relieve the licensee of any.of his obligations hereunder.
ARTICLE III The Co= mission undertakes and agrees to indemnify and hold 1.harmless the licensee and other persons indernified, as their interest may appear, from public liability.
k'ith respect to darage caused by a nuclear incident to property 2.
the Co= mission of any person legally liable for the nuclear incident, agrees to pay to such person those suas which such person would have been obligated to pay if such property had belonged to another; the obligation of the Ccemission under this paragraph 2 provided, that 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 ceans to save and preserve the property after knowledge of a nuclear incident; If the nuclear incident occurs in the course of transportation (c) of the radioactive material, the transporting vehicles and containers used in such transportation; (d) The radioactive material.
B The Commission agrees to indemnify and hold harmless the licensee 3.and other persons indemnified as their interest may appear, frcm the reasonable costs of investigating, settling and defending claims for public liability.
- 4. (a)
The obligations of the Commission 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 costs described in paragraph 3 of this Article as in the aggregate exceed the amount of financial protection.
(b) With respect to a common occurrence, the obligations of the Commission 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 c f this Article), and to such reason-able costs described in paragraph 3 of this Article, as in the aggregate exceed whichever the following is lower:
(1)
The sum of the amounts of financial protection estab.lished under this agreement and all other applicsble agreements; or (2) an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection.
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 agreements and contracts to which the Commission is a party shall not, with respect to any nuclear incident, in the aggregate exceed whichever of the following is the lowest:
(a) $500,000,000; (b)
$560,000,000 less the amount of financial protection required under this agreement; or (c) with respect to a common occurrence,
$560,000,000 less the sum of the acount of financial protection established under this agreement 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 af fected by any f ailure on the part of the licensee to fulfill its obligations under this agreement.
Bankruptcy or insolvency 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 of its obligations hereunder.
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ARTICLE IV When the Cornission determines that the United States vill probably be required to sche indennity payzents under the.provisiens.
1.
the Commission shall have the right.co. collaborate with the licensee and other perscus indemnified in the settle ent and of this agreement, and shall have the right.(a) to require the. prior defense of any clai or payzent of any clai=
approval of the Concission for the settlementthe licensee or other persen. indemnif or action csserted against for public liability or danage to property of persons. legally. liable for the nuclear incident which. claim or action the licensee or the Consission =ay be required to indemnify under this agreement;.and.
(b) to appear through the Attorney General of the United. States. on behalf of the licensee or other person indemnified, take charge of If the. settlement such action and settle or. defend any such action.
or defense of any such action or claim is undertaken by-the Concission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.
Neither this agreement nor any interest therein nor clai:
thereunder may be assigned or transferred without the appreval of 2.
the Consission.
ARTICLE V they.will enter into appropriate atendments.of this The parties agree that that euch crenacents are required pursuant.co the agreement to the extent of 1954, as amended, or licenses, regulations or orders Ato:ic Energy Act of the Commission.
ARTICLE VI The licensee agrees to pay to the Cornission such fees as are. established to regulations or orders of the Con =ission, by the Commission pursuant ARTICLE VII The term of this agreement shall commence as of the date and time specified the time.of. expiration of 6 of the Attachment.and shall terminate.at 3 of the Attachment,.which is.the last to. expire; in Ite that license specified in Ite:
as may otherwise be provided in applicable regulations provided that, except the ter= of this agreement shall not ter=inate or orders of the Concission, the 1ccation and until all the radioactive caterial has been removed fro:
transportation of the radioactive caterial fro = the location F.as ended as Termination of the ter: of this defined in subparagraph 5(b), Article I.
any obligation of the licensee or any obligation agreement shall not affect to any nuclear incident of the Con :ssion under this agreement with respect occurring during the term of this agreement.
B 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 will not pay the assessment.
Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings.
Subse.luent submission of financial statements by such licensees may be requested by the Commission, as requir~J.
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 urise 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 Corxnission 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 uneforceable.
4.
If the Con. mission determines that the licensee is financially able to reinburse 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 Vill 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.
0 9
B
' UNITED STATES NUCLEAR REGULATORY COMMISSION ATTACHMENT Indemnity Agreement No. B-89 Item 1 - Licenste Tennessee Valley Authority Address 500A Chestnut Street Tower II Chattanooga, Tennessee 37401 Item 2 - Amount of Financial Protection a.
$1,000,000 b.
With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (i) reduced to the extent that any paynent made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachment reduces the aggregate amount of such insurance policies below the amount specified in Item 2a and (ii) restored to the extent that, following such reduction, the aggregate amount of such insurance policies is reinstated.
Item 3 -
License number or numbers SNM 1865 Item 4 - Location All of the premises including the land and all buildings and structures of Tennessee Valley Authority's Bellefonte Nuclear Plant, including but not limited to Units 1 and 2, situated on a site consisting of approximately 1500 acres and located on a peninsula extending along the west bank of the Guntersville Reservoir at Tennessee River mile 391.5 approximately six (6) miles northeast of Scottsboro and thirty-eight (38) miles east of Huntsville in Jackson County, Alabama.
Item 5 -
Insurance Policy No(s).
13 Nuclear Energy Liability Policy (Facility Form) No.NF-258 issued by the Nuclear Energy Liability Property Insurance Association.
Item 6 - The indemnity agreement designated above, of which this Attachment is a part, is effective as of 12:01 a.m., on the 30th day of January,1980.
FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION
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-,77,31);g Jerome Saltzman, Chief Antitrust & Indemnity Group Office of Nuclear Reactor Regulation i
FOR TENNESSEE VALLuY AUTHORITY c
BY Dated at Bethesda, Maryland, the 3C.'h day of January,1980.
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