ML20004A940

Forwards 810429 Agreement Providing for Indemnification of Nfs for Work That NRC Wishes to Have Performed at Facility. Permission from State of Ny Should Be Obtained for Ingress & Egress

ML20004A940
Person / Time
Site:	West Valley Demonstration Project
Issue date:	05/08/1981
From:	Deuster R NUCLEAR FUEL SERVICES, INC.
To:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
Shared Package
ML20004A939	List: ML20004A940
References
NUDOCS 8105270011
Download: ML20004A940 (4)

Text

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V Nuclear Fuel Services, Inc. 6000 Executive Boulevard, Suite 600, Rockville, Maryland + 20852 NFS 4 s e a ry or = =r = e - m 0 0n m ssio Ralph W. Deutter enesecewr O

May 8,1981

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Docket No. 50-201 . . . _ ,,

Mr. William .T. Dircks  ;

Executive Director for Operaticos j .

U. S. Nuclear Regulatory Commission Washington, D. C. 20555

Dear Mr. Dircks:

Enclosed is the fully executed original of the agreement you forwarded by letter dated April 29, 1981, providing for an indemnification of Nuclear Fuel Services, Inc. (NFS) for certain work the NRC wishes to have performed at West Valley. Please note, however, that NFS does not expect to be in p==== ion of the site beyond Octoher 13 1981, when the Department of Energy (DOE) is expected to ,

take possession pursuant to._the West Valley Demonstration Project Act and the Cooperative Agreement between DOE and the New York State Energy Research and Development Authority (NYSERDA), the owner of the site. Additionally, you should be aware that NFS' Lease for the site expired on December 31, 1980.

Accordingly, we believe that the permission of NYSERDA should also be obtained for ingress and egress to the site and for cooperation in conducting your activities.

" Sincerely, 6v -a Ralp W. Deuster ,

i RWD:jnw Enclosure I

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INDEMNTTY AGREEMENT

1. Subject to the availability of general appropriations, the Nuclear Regulatory Comission agrees to indemnify and hold harmless Nuclear Fuel Services, Inc. against all claims, losses and expenses on account of property damse not compensated by insurance or otherwise and arising out of or in connection with the activities of the Department of Energy's Contractor Rockwell International Corporation.at the Western New York Nuclear Service Center facility in West Valley, New York (the facility), unless such clais, loss or expense is caused directly by willful misconduct or gross negligence on the part of Nuclear Fuel Services, Inc.

2. Nuclear Fuel Services, Inc. agrees that during the life of this indemnity agreement its sole and exclusive remedy for arty such property damage shall be under this indemnity and no claim or action shall be asserted at arty time against itockwell International Corporation for any such. damage.

3. The term " property damage" as used herein does not include mirer cosmetic damage such as but not limited'.to scratching and scarring.

4. In the event arty equipment, apparatus or other thing operated or manipuli.ted by or under the control or direction of Rockwell International Corporition makes physical contact with the waste tank, the' concrete vault or any appurtenance to either of them (by way of example and not by way of limitation, appurtenances include risers, plugs, vents, external piping, etc.) and_ Nuclear' Fuel Services, Inc. asserts that.such physical contact has "

caused damage to or detective' condition of ~the waste tank, the concrete vault or arty appurtenance, excluding thost conditions listed irparagraph 5 below, the Nuclear Regulatory Connission shall then have the burden of going forward with evidence to show .that su:S damage or defective condition was not caused by such physical contact or that such damage or defective condition is cosmetic only and does not compromise the integrity or operation of the waste tank, concrete or appurtenance.

5. Listed bel x are the instances of evidence of damage to or defective condition of the wa:.te tank, the concrete vault or any appurtanance for which the provisions

,of paragraph 4 above shall not apply and the burden of going forward with evidence shall be determined 1olely by the applicable rules of law:

A. Evidence of tank leakage:

1. Pools of waste or salt deposits in the bottom of the pan

2. Seeps of waste or salt deposits on external tank surfaces 6

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B. Corrosion of tanks or associated piping:

1. Detection of conditions with the potential for stress corrosion cracking .

2. Excessive general corrosion, near or beyond design limits

3. Pitting corrosion C. Defects in Tanks: .

1. Small cracks (detected by ultrasonic testing) which may not penetrate entire tank wall thickness

2. Void Spaces or Slag Inclusions D. Defects in Vaults:

1. Cracks in concrete

2. Steps or 'other e.yidence of in-leakage through the_-vault .

3. Spalling or other deterioration os vault internal surfaces E. Conditions attributable to Construction Errors:

1. Missing components'

2. Construction debris F. Adverse Conditions in Soils Surrounding the Vaults:

1. Above background radioactivity detected in soil, samples

2. Contiguous sand lenses in the vicinity of the vaults l

3. Presence of an aquifer in the vicinity of the vault D

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G. Defective conditions clearly existing in the waste storage system prior to the conduct of the inspection, for example, the 8D-2 pan defect.

6. This indemnity agreement applies only to damage to property located at the facility and only with respect to damage that occurs while the facility is in the possession of Nuclear Fuel Services, Inc. .

U. S. Nuclear Regulatory Commission

/

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William J.Mircks J

Executive Director

. for Operati~o3 lg- - . .. .-

Nuclear Fuel Semices, Inc'.

Ral W. Deuster, President Date:  !/(( .,

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