ML19308A782

Forwards Amend 13 to Indemnity Agreement B-44,reflecting Change in Amounts of Financial Protection

ML19308A782
Person / Time
Site:	Oconee
Issue date:	05/01/1979
From:	Saltzman J Office of Nuclear Reactor Regulation
To:	Parker W DUKE POWER CO.
References
NUDOCS 7912110759
Download: ML19308A782 (6)

Text

UNITED STATES 8

4 NUCLEAR REGULATORY COMMisslON

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W ASHIN GT ON. D. C. 20555 MAY 1 1979

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• Docket Nos. 50-269 liGULATORY 20CKET lLE CO?Y

~50-270 50-287 Duke Power Company ATTN: Mr. W. O. Parker, Jr.

Vice President, Steam Power Production 422 South Church Street Charlotte, North Carolina 28242 Gentlemen:

We are enclosing herewith an amendment to your indemn The amendments ments and Indemnity Agreements," effective May 1, 1979.

i 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, h

erome Saltzman, Chie Antitrust & Indemni Group Office of Nuclear,eactor Regulation

Enclosures:

M 1.

Amendment to Indemnity Agreement 2.

Amendment to 10 CFR Part 140 790514043r

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50-270.

50-287*

A'tEliDiIEllT TO ItiDEMI!ITY AGREB!EfiT !!O. B-44 N1EllD:4E!iT Ii0.13 Effective !!ay 1,1979, Indemnity Agreement !'o. B-44, between Duke Fower Compt.ny and the Atomic Energy Connission, dated l'. arch 24,1970, as anended, is hereby further anended as follous:

The ar.ount "$140,000,000' is deleted wherever it appears and the amount $150,000,000" 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 anount "$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 - Anount of financial protection a.

$1,000,000 (From 12:01 a.m., !! arch 24,1970, to 12 midnight, February 5,1973, inclusive)

$95,000,000 (From 12:01 a m., February 0,1973, to 12 nidnight, February 28, 1974, inclusive)

$110,000,000 (From 12:01 a.n., !! arch 1,1974, to 12 nidnight, itarch 20, 1975, inclusive)

$125,000,000 (From 12:01 a.m.,

iarch 21, 1975, to 12 nidnight, April 30, 1977, inclusive) orrses p.

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$140,000,000 (From 12:01 a.m.,iby 1, 1977, to 12 midnight, April 30, 1979, inclusive)'

$160,000,000, (From 12:01 a.m., !!ay 1,1979)

FOR Ti!E UtilTED STATES !!UCLEAP. REGULATORY C0ii!!ISSIO:1

/slJEROME SANIMAR Jerone Saltzran, Chief Antitrust & Inderrnity Group Office of Nuclear Reactor Regulation Accepted

, 1979 By_ DUKE POWER C0;1PA:1Y Distribution:

Licensee (2)

LPDR NRC PDR Docket Files

(

AIF Indemnity Files AIG Reading j'

6 IDinitz Reading OELD Desk and, as of August 1,1977, the amount available as secondary financial. protection.

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Et Federal Repater / Vol. 44. ho. an / Fnday. April 6.197 / Rulen and Regulations This document has been reviewed m accordance with FmHA Instruebon habuity claims resultmg from a nuclear IWn-G "EnvironmentalImpact meident. Secuon 170 of the Act. requires and sectons 55 and 553 of Title 5 of the Statements."It is the determmaton ofthe Nuclear Regulatory Commission to Umted States Code the followmg FmHA inat this action does not mdemnify the licensee and other amendments to Title 10. Chapter 1. Part constitute a major Federal action persons indemnified. up to the statutory 140. Code of Federal Regulauons, are significantly affectmg the quahty of the hmitation on habihty, against pubhc published as a document subject to human enytronment and in accordance liabihty claims in excess of the amount.

codificaton.

of financial protection required.

I 14c.11 !Amenoodl vnth the National Environmental Pobey Subsection 170b. of the Act requires that of 19o9. Pub. L 91-190 an Environrnenta! Impact Statement is not for iacuities designed for producing

1. Section 140.11(a)(4)is amended by

required, substantial amounts of electricity and deletmg "$140.000.000" and substitutmg having a rated capacity of 100 electrical therefor "$160.000.000."

Authoritiet (u US.C.14ao: delegation of megawatts or more, the amount of suthority by the Secriary of Agneulture. 7 financial protection 3tequired shall be i 140.13e ! Amended]

Cnt 2.:3. delegetson of authonty by the tne roaximum amount available from 2.Section 140.13a(s)is amended by Assistant Secretary for Rural Development. r private sources. For other licensees, the deleting the term "$140.000.000" and CFR r.ro)

Dated. March so.1979.

Commission may require lesser amounts substhuW hfx *3180.000m" of financial protection. Primary financial I tao.s1 [Amendedl protection may be in the form of private

3. In i 140.91. Appendix A. Condition 3" *'"" " **"*

in t ti s.

1 ir a ance o other 4 is amended by revising the footnote to

!^D"*'**M*~'**"**

proof of financialresponsibuity,or read as follows:"For policies issued by

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combination of such measures.

The insurers who provide the nuclear Nuclear Energy uability-Property liabihty insurance. American Nuclear Insurance Association the amount will HUCLEAR REGULATORY Insurers (ANI) and Mutual Atomic be "S124.000.000"; for policies issued by COMMISSION Energy unbihty Underwriters (MAELU). Mutual Atomic Energy uability have advised the Commission that Underwritem. the amount will be "336.000.000."

10 CFR Part 140 effe tive January 9.1979. the maximum amount of primary nuclear energy

4. In i 140.91. Appendix A. paragraph Financial Protection Requirementa and hability insurance available was ID of the " Optional Amendatory indemnity Agreementa; Miscellaneous increased fr m $140 miHion to $100 Endorsement"is amended by revising Amendments taillion. Pursuant to the provisions of the footnote to read as follows:

subsection 170b. of the Act, tht amount "For policies issued by Nuclear Energy Aorwer: U.S. Nuclear Regulatory Commission.

of prunary financial protection required umbility PropertyInsurance Association AcTioec: Final Rule.

for facilities having a rated capacity of the amount will be "$124.000.000"; for 100 electrical megawatts or more will be pol cies issued by Mutual Atomic

SUMMARY

'Ibe provisions of Section 170 increased to S160 million, effective May Energy Uability Underwriters the of the Atomic Energy Act of 1954, as 1.1979. In addition in compliance with am unt wG be "$38.000N amended. require production and 10 CFR Part ito. those persons beensed utihzation facihty bcensees to have and to possets plutonium in the amount of 5 i 140.s2 iAmended) maintain financial protection to cover kilograms or more and personslicensed

5. Section 140.92. Appendix B. Article public liability claims resultmg from a to process plutonium in the amount of 1 II paragraph 8(a). is amended by e

nuclear incident.

kilogram or more for use in plutonium.

deleting the amount "$108.500.000" j

Tne Nuclear Regulatory Commission processing and fuel fabrication plants wherever it appears and substituting is amendmg its regulations to increase will also be required to provide financial therefor "S124M000."

j the level of the onmary layer of protection in the amount of $100 million.

6. Section 140.92. Appendix B. Article financial protente required of certain Since the amendments set out below II. paragraph B indecmified licensees. The Commissionconform the Commission's regulations to deleting the am(b). is amended by is amending its regulations at the a statutory requirement, the Commission ount "331.500.000" has found that good cause exists for wherever it appears and substituting present time to coincide, as atatutorily omitting a value therefor "$36.000.000."

required with the increase in the level notice of propose / impact analysis, public

7. Section 140.92. Appendix B. Article d rule making and of the primary layer of insurance

11. paragraph 8(c provided by private nuclear liability pubbe procedure thereon as unnecessary.

changing the amo). is amended by insurance pools.

unt "$140.000,000" to Pursuant to the Atom'-Energy Act of

• S160.000.000."

ErytcTtVE DaTE: May 1.1979.

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ed.t e e

8. Section 140.92. Appendix B. Article FOR FURTHER INFORuATION COtffAcT:

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Ul. paragraph 4(b)(2). is amended by Mr. Ira Dinitz. Anttrust and Indemnity changing "$140.000.000" to Group. U.S. Nucleat Regulatory

'.The Act does not by its ma.mn.ne..r. pnmary procea language remun Commission. Washington. DC 20555.

4e nucisarh.bthtt (Phone:301-492 4 336).

taeurancel byer and e *ucondar3 ti.e.

I " " M *" M j

"'30*P'et **=nuay'r of fmanual prow: bon sum.rutwTaRy mrommattom: The

["l,*,'"e tmanN"p'7.N"Hl ele

9. Seetion 140.93. Appendix C. Article I'

• Pan uo of the coeuruman's reguleuem the,CQ

11. paragraph 8. is amended by changmg provisions of Section 170 of the Atomic Energy Act of 1954. as amended. (the u=plemt me Act dae-

"$140.000.000" to "$160.000.000."

Act) require production and utihzation iacihty beensces to have and maintein 5",*Q'"dyj*,"[,'Mn bann me

10. Section 140.93. Appendix C. Article j'",*[g**

lH. paragraph 4(b)(2),is amended by financial protection to cover pubbe t.;yi inen.a. m ts,pnmary3.y,r rem caj ch angmg "$140.000.000" to pro eenen.

i

"$100.000.000."

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Fedml Register / Vol. 44. No. 68 / Fnday. Apnl 6.1979 / Ruha and Resu!1 tuna 20633 l 140.94 [ Amended!

FEDERAL DEPOSIT INSURANCE Since the changes are proceduralin nature r necessitated by statutory

11. Section 140 94. Appendix D. Article CORPORATION amendment. the Board of Directors of

11. paragraph 8. is amended by changmg 12 CFR Parts 307 and 327 the Federal Deposit Insurance

"$140.000.000" to "$160.000.000.-

Assumption and Asaessment of Corporation has determined. under i1R95 lAmended)

Deposit I labilltles of Insured Banks; Section 302.8 ofits rules and regulations

12. Section 140.95. Appendix E. Article Voluntary Termination of4nsurance (12 CFR 5 302.6), that notice of, and ill paragraph 4(b)(2) is amended by Status public participation in, this rulemaking is unaccessary and that good cause changmg "$140.000.000" to AGENCY: Federal Deposit Insurance exists f r the waiver of the 30. day

~$160.000.000."

Corporation.

deferral of the effective date for the i 140.107 IAmendedl ACTION: Final rule.

changes.

Acc rdingly.12 CFR 307.3 and 327.2

13. Section 140.107, Appendix C.

SUMMARY

The Federal Deposit bparagraph (b) ara changed as Article IL paragraph 6(a),is amended by Insurance Corpcration has decided to

{"g deleting the amount "$108.500.000" revise and amend il 307.3 and wherevar it appears and substituting 327.2(b)(3) of its regulations to: (1)

P ART 307-VOLUNTARY therefor "$124.000.000.-

implement Sections 304 and 310 of the TERMINATION OF INSURANCE Financial Institutions Regulatory and STATUS

14. Sect;on 140.107. Appendix C.

.ct o 978 Article IL paragraph 6(b). is amended by 1.12 CFR 307.3 is revised to read:

deletmg the amount "S31.500.000 assumption and assessment of deposit I '07'3 8' D* "*" '"d "**"8

wherever tt appears and substituting b

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'8" be fumiehed the Corporation where therefor "$36.000.000."

correct an inaccurate reference, deposits are assumed by anothee insured

15. Section 140.107. Appendix C' EFTECTIVE DATE: April 8,1979.

bank.

I Article IIL paragraph 6(c), is amended FOR FURTHER WFORMATION CONTACT:

(a) Whenever the deposit liabilities of I. 33 Jerry L Langley, Senior Attorney, an insured bank are assumed by another Federal Deposit Insurance Corporation, insured bank, whether by merger.

to. Section 140.107. Appendix G. -

55017th Street. N.W, Washington. D.C.

consolidation, or other statutory Article IIL paragraph 4(b). is amended 20429 telephone (202) 389-4237.

assumption. or by contract, the by changing the amount "$140.000.000" continuing bank shall give notice of the supeuMEN'TARY WFORMAT10m Section t

000 M 304 of FIRIRCA amends Section 8(q) of assumptim tg the depositors of the bank g 140.tos ! Amendedj the FederalDepositInsurance Act(FDI whose deposits are assumed within 30 Act) to provide that whenever the days after the assumption takes effect.'

17. Section 140.108. Appendix G.

deposit liabilitici of an insured bank are Such notice shall be (1) mailed to each Article IL paragraph 6. is amended by assumed by ano:her insured bank.

depositor at the depositor's last address changing the amount "$140.000.0i10' to whether by merter, consolidation, or of record as shown upon the books of other statutory assumption, or by the bank. (2) published in not less than

"$160 m m "

18. Section 140.108. Appendix H.

contract:(1) the insured status of the two issues of a local newspaper of Article IIL paragraph 4(b). is amended bank whose deposits are assumed shall general circulation. and (3) in form by changing the amount "$140.000.000" termmate on the date the Corporation substantially as follows:

pate) to "$160.000.000."

receives satisfactory evidence of the No to De tors EFFECTIVE DATE:The foregoing assumption;(2) the separate insurance amendments become effective on May 1.

of all msured deposits so assumed shall liabilities shown on the books of [Name of ternunate six months after the date the Assumed Bank)

(City or town)

3979, assumption takes effect or,in the case of iState) es of class of (Secs.181. pub. L 63-ros. Se Stat. 948 (42 any tune deposit, the earliest maturtty business on

. m.- have been US C. 2001):Sec.170. Pub. L 85-258. 71 Stat.

date after the six. month pen,od: and (3) assumed by the undersisned bank.ne s'e. Pub. L 94-197. 89 Stat.1111 (42 U.S.C.

the continuing bank shall give notice of insured status of(Name of assumed bank) 22101: Sec. 201. Pub. L 93-438. as amended. 88 the assumptsqD to the depositors of the will terminate at the time provided in section Stat 1242. 89 Stat. 415 (42 US.C. 584111 e Fede alDepont Insurance Act.

bank whose deposits are assumed he separate insurance ofits despeits will Dated at Washmston. D.C tius 2nd day of within 30 days after the assumption therefore tenmnete at the end of six montha Pg takes effect. Section 307.3 has been from the above date or,in the case of a time For the Nuclear Regulatory Commission.

revised to imple nent these provisions deposit, the earliest maturity date after the w t. ch.a.

and to corrct an incorrect citation by six-month period.

s==o.n=c== -

changmg the reference "I 304.3 (s) and You are advised that the undersigned bank irm one.

wnsa rn.d m a s.m (t)" in Section 3(r7.3(b) to "I 304.3 (u) is an insured bank and that your deposits wtil and (v)**.

c ntinue to be insured by the Federal Deposit Insuran e Corporation in the manner and to Section 310 of FIRIRCA amends the extent provided in said Act.

Section 7 of the FDI Act to exclude depcsits accumulated for the repayment ddress) of personalloans from the defimtion of There may be included in such notice deposits for instrance assessment any additionalinformation or advice the purposes. Section 3 (b)(3) of FDIC's bank may deem desirable.

regulations has been amended to aline its definition of the term " deposit" for

_g assessment purposer with that of 3,,

. g,,,,,,,,,, se defined in roacnot. 2.

Section 310 of RRIRCA.

of section Jos.11tsgoi.

i

y red:r:1 Regisl:r / Vol. 44. No. 80 / Tuesdzy. April 24.1979,. ules and Regulations 24M5 e, NUCLEAR REGULATORY Appendix D identifies those Requests for the sale of motor assohne would COMMISSION for Interpretation which have been constitute the imposition of a more sinnsent dismissed dunng the same penod.

credii term than the credit terms m effect on 10 CFR Part 140 Fon FunTHER INFonuATioN CONTACT A

at on and c

.es. set Diane Stubbs. Office of General forth at to CFR Part 210 and adopted on Financial Protection Requirements and Counsel. Department of Energy.12th &

January 14.1974. 39 FR 1924 (January 15.

Indemnity Agreements; MisceHaneous Pennsylvania Avenue NW Room 1121.

19741. were mtended to set forth the s

Amendments Wa shmgton. D.C. 20461 (202) 633-9070.

provisions apphcable to both the Mandatory Correction SUPPLEMENTARY INFORM ATIO*C

~

Part 2111 and the Mandatory Petroleum Pnce Interpretations issued pursuant to 10 Regulanons (10 CFR Part 2121.The allocation In FR Doc. 79-10853. appearing at CF3 Part 205. Subpar 1 F. are published and pnce regulatwns were adopted to page 20632. in the issue of Fnday. April in the Federal Register in accordance implement the statutory mandate of Section 6.1979, on page 20633'. make the with the editorial and classification 4(al of the Emergency Petroleum Allocation following corrections:

cnteria set forth in 42 FR 7923 (February Act of 1973 (EPAA1. as amended. Pub. L No.

(1)In the first column in paragraph 15, 8.1977), as modified in 42 FR 46270 9>159 (November ::7.19 31.'

in the second line, correct " Article III" to (September 15.1977).

Section 210 cla) regulates credit terms as a read " Article !!".

funcu n f pnce in &c gmnon of the s arymg These Interpretations depend for their r les that credit and other conditions of sale (2) In paragraph 17. in the first line.

authority on the accuracy of the factual play m ine flow of product > Section 210 ctal correct, Appendix G, to read stateerit used as a basis for the proudes m releunt part:

Appendix H Interprete:n (10 CFR 205 84(a)(2)) and "Supphers will deal with purchasers cf an may be rese:nded or modified at any allocated product accorome to normal e.us o coot isos-ci.=

time [i 205.85(d)). Only the persons to busmess practices m effect durmg the base whom Interpretations are addressed and pen d specifed in Part 211 for that allocated DEPARTMENT OF ENERGY other persons upon whom pr duct. and no suppher may modify any n nnal busmns macuce so as to msuh in me Interpretations are served ape entitled to circumvention of any pronsion of this 10 CFR Part 205 rely on them (i 205.85(c)). An chapter.... Credit terms other than those Interpretation is modified by a associated with seasonal credit programs are Admm. istrative Procedures and subsequent amendment to the meluded as a part of the May 15.1973 pnce Sanctions; 1979 Interpretations of the regulation (s) or ruling (s) mterpreted charged to a class of purchaser under Part General Counsel thereby to the extent that the.

212 of this Chap 4er. Nothng in this paragraph AGENCY: Department of Energy.

Interpretation is inconsistent with the shall be construed to require supphers to sell t purchasers who do not arrange proper amended regulation (s) or ruling (s)

ACTION: Notice of Interpretations, (i 205.85(e)). The Interpretations customanly associated with that class of credit or pannent for allocated products. as suuuAny: Attached is the Interpretation published betow are not subject to purchaser.. on May 15.1973.

Issued by the Office of General Counsel appeal.

However. no suppher may require or impose of the Department of Energy under 10 Issued in Washmston. D.C Apr'.110.1979.

more etnngent credit terms or payment CFR Part 205. Subpart F. during the E-m-s'= tr-

h'd"I'* " P"h*'th*" th " I" 'I'

penod March 1.1979. through March 31.

d'n*'w**ce"e'm's ' cow"w'*o ' '"

"'N=

"d 8'd'*8' 1973. *."

C C

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'Y

• o 1979.

Accordmg to the facts presented by Sinclair. neither at the present time nor on Appendts A-4nteepretatiorm

'151.LS C. 751 er seo (tr6L

'Smce the deos.on by the Temporary Emereency peo to Date Casegory Fee No Court of Arveals m Marothon OdCo. v. TEL 547 F 2d 1140 (TECA 19 6L triere can be no doubt is't cs.

sniciar os Cornaremon Wwe s 1%s A-3as concemng de aumog of me %ral Eng Admmistranon (FT.A) and its successor. the DCE to resulate credit terms mcadent to the mandatory petroleum pnce regulahans. In addition the DOE Interpretation 19%5 account. At the present time. Sinclair desires has rnoind inun smular to me one prnen&d by

"'h*"'"'"C*"""

Ty Smclair Oil Corporation to modify its standard contracts for the sale are permissibie m view of the provisions of of motor gasohne to require a fmance charge i 210 8::at See rmon Corrpony. US.A. 2 DOE Regu/otson Interpreted: 10 CR 210 62ta) of one and one-half [t h] percent monthly on too.150 tOctober 28. trat Crvsrol Od Co.1 FT.A Code: GCW-PI-Normal business practices the balance of all accounts not paid within 30 1:t1161 (October a.19 41. In Od Transit Corp days. No other credit terms are to be Inarpretauoin ts 7-35. a2 F1t 54m (Octooer 5.

Facts changed.

19

1. the DOE found that reqwrma purenasers of The Smclair Oil Corporation. a small and motor sesoime to mcur for the first time me independent refmer subiect to 10 CFR Part Issue adcnonal cost of ootamma letters of credit 212. Subpart E. mark ets petroleum products Does Sinclair's proposal to assess a finance Er*,cD$$

",','",0 [

,N.j" through its subsidiary. Smclatr Marketmg.

charge on a!! dehnquent accounts constitute the cred.t terms in effect on May 15.19 3. m inc. ISmclair). Smce May 1973. Smclair3 the imposition of a more stnneent credit term vioiation of I 210 6:141.However. the DCE has not standard contracts with tobbers and dealers than the credit terms m effect on May 15.

previousiv considereo a case such as +he present for the sale of motor sasoline have required 19*3. w:thm the meanmg of to CFR 210 62f al?

one wnere the proposed channe :n credit 'e-ms payment m full withm 30 days. Payment m

• • uid 'FD'y one atier ine purenase pric. e due en full withm 10 cays nas entitied a purchaser to late pretoriah fua i

a 1 percent discount on the purenase prCe.

For the reasons set forth beiow. the Smc6r has considered an account Department of Energy IDOE) has determmed outstandma for more than 30 days to be m that Sinclatt s ;nclusion of a 1% percent oefault ano subiect to suit. In thatinstance monthly finance charite on ail accounts not collection costs would be assignable to the paid withm 30 days m its standard contracts 1

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