Text

Contract for Nuclear Equipment for TMI Nuclear Station Between Met Ed & B&W
	ML20024A932
Person / Time
Site:	Crane
Issue date:	11/15/1966
From:	; Babcock & Wilcox Co, Metropolitan Edison Co
To:	;
References
	TASK-*, TASK-GB GPU-0193, GPU-193, NUDOCS 8307010199
	Download: ML20024A932 (60)
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w of Supply Due to AIC Licensing (,s Requirenants............ 13 E L D. Choice of Chang-s In Plant Design. 17 y E. Limitatien en Ftnancial Responsiht11ty [ ofaw................ 17 r

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5Y s c. g Article E". 2 ~ . II GCVER.*0E IT At.rJEC3IIATIC;:3...... 40 ll - 2 .y.. ~ A. AIC Licens in.1;.......... 40 t ]... ,,.'es Reg 21 story App.mvals 27 Cther W '.? . j f-3. K l 5, Govera:s=tal Agencies...... 42 ~ I. - m.................. 43 h," l p t.. II DEIAYS - CAMAGIS....... .... 44 ' ".j.! E. III CONSEQUE*!TIAL 'CA:MCIS.......... 4$ k' , c-IIII ASSIG:C4E:iT AND SUSCCMCTI".G. .... 46

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s s.. c... q This contract,. entered into bat. tea.n Me':ropolitan f, Edison Cc=;any, a Per.nsylvania corpo ation (hereicafter re-h. ferred to as HetEd) an:1 The 3abcoc!c ?z *.filcox cccpany, a New Jersey conoration, (hereinafter refe-ed to as B!.'.i),

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i I is effective as of !!ove=ber 15, 1966. r. j h,. a = Article T - Teoce of Secolv 7,.:. A.*. *Ecute :ent L. / C-8% (1} BW shall supply to Meted at Philadelphia, Pa. on b h ...... barges the reactor vessel and at -211 head, Reading, {/ Pa. the balance of equipment of the chec:1 cal shis 5,. pressurized water reactor nuclear steam supply t, system having a base capacity of 2351 X".it and b k. certain auxiliary w:uip=ent and ::ste=s. f. (2) 'l'he nuclear steam supply system ar.d the sux111ary 1 l equipnent and systacs to be provided by SW are described in the Technical Description set forth F in Appendix A to this contrset (hereinafter re-k r ferred to as *the Technical. Des:ri;:t~.on"). 6 h l ~ u 4 I r f g 9 ,.d 2 l 2 9' l 200d2 1 2 9 ..v s v--

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. * ' ' a. L. * *,.. ' ' ' - t.- - '. a. ~ .C s * - %_V ~. ~.. - c .m rc a n ~: 3. S*_retees r: k 37.M shall furnish the follcwing technical se.71ces on g.: e a tinely basis in support of plant _de. sign, const mc-i. 1 d~- tion, licensing, and operation.. All infor=acion and r. c.. docunents P.trnished by BS' shall be complet s and ade-A ~. f." quate,to neet plant design and test requirenents and s applicable codes and regulations. l ~ ,9. ~ * ' _.....( 1 )..... - -.Eeutonent ad Svrt-- s Su eli+d W hecock a ilcox tl L (a) BaM shall cooperate with Me:Id, Gilbert Asso-i-e ciates, Inc., its architect-engineering con-b tractor, and United Nhgineers and Constructors, {. c.,, .e. Inc., its construction nanagement contractor,. 3 ^ ' ~

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y U .inf their perfornanc e of the, design, const:=.te- -- - ~. 4. G - -- -.. ...;,. tion and inspec tion of th'e power' plant. g l (b) 38M shall furnish to !,(etId, on a tinely basfs, ~ -~ - I. c. for use in :ennection with the daign, erection / and operation cf the *:'hrse Mils Island ?!uclear L".

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"J.at. ion, as nm.s copies, as MetZd.ay reason-ably require, of progress report:b, production k. +s-and fabrication schedules, prelininary and

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final drawings, plans and spectri:stions, E i diagrans and other engineering data for all I. 5. the equip =ent and syste=s to be supplied by h it hereunder.

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b receipt, MetId shall check, approve and return f. one set of such reports, schedules, drawings, ? s O ~. b' L 4 Fn- . p l2 i a o f 2cos]21 For t w ~'

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4 t. ..i_,. L .. w. ., "L ~ g e F:- r t 4 ar.d data to B W. Such check and approval shall not relle*:e 32 4 of any of its -obli-(... h.. gations under *;his "ontrace, (c) Prior to prelininary ac:aptance of the nu-p; ...(. 7 clear staa.s supply system, 2 W s'.all farnish i, 2 to Meted for its use for or in connection E.. i; e-f. .... with the D.ree :111e Island fluelear Station,

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N a completa. set of per=anent, reproducible J t as-built drswin;s of all equipmenc and sys. J v. F taas supplied by SW under this contract. [, (d) BW shall trans=le t so copies of che folicw-k 7 ing documents to ~4etId as they are issued by- [, t .n v. ~T BW, or as received by SW, as the case =ay be: [', ~ r- ' O. (1) Descriptive nacerial as avaliable for -- [:,. ~ ~~~** 1 g s. N i.

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all items procured from subc.o.ntractors,

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(ii) Certificates of inspections and tests b-l as requirs<' bv state ar.d local regula- }, c-tory authort:tes received by nii for y i [ the equipment and systems to ba do-r* livered hereunder. L f (2) t,ieenstne Assireane. e:- BW shall assist MetId in ootaining all sever==ent E, authorizations necessary to per=1t const-uction E s and operatien of the T..ree :lile Island *uctaar 3ta- .I tion as provided in A M ic1.e Iy. of this Contract. h Lr ('. \\ 1 k f .j ) y .i J 20cs 2 1 3 1) [pj2i31 s ~ t ) 3

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cation at :he request of XetEd-h p T-s in 1. m,,, ,... - - ~ ~ ~ ~~~ ~ ~~... - [. ~ ~ ~ ' ~ (4) ~ staffing and r. EW shall assis: Meted 1n pesparir.g, ~

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providing a training progra= for ap;rcximate17 30 u employees of MetI4, as describsd in /.ppendix 3 to g. this contract. ""^ b. I J. (5) coe stion and seintenance 1. r 2/.9 shall proride Meted withs t 4 (a) Ten copies each of ' installation, operating -"-~~- -- and maintenance instruction boo.cs for equip-3{-- s Y. g. l , ment and system _s f. urn.a_.sh._ed b7 SW, and p g.. ( b). Ten copies of such other infornation..for. in'i--- .--~~~'~.-"."~'~ I'. P-corporation into the ?lant data,back and T~ a k. s Planc st:rt-up, oper: tir.;i; and =aintenance t L-manuals, as ;4etra r.a., reasonably re:;cest. ,C (6) Desien. Ins 211ation ar d :enst--:etton g.. l (a) During the design, fai:rication and test:ing of

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of its a6ents to obsa~ts design, fabrication F B and testing work perf 3. ed under chts Concrsc: at EW facilities, and shall furnish suitable E. i office facilities for 2.:ch a=plo~ees. Any O. r L P = n 8 x, s. 'p2 1 3 2.I 20082 I @'N 1 \\.- .. I y..

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.<.."...:.1,- ' ~. l .: _ w. ~ . ^^ y, m,. r. J F.. i Q proprietary 1::for=ation conte: :1.s the products k or manufacturing processes of 3C?, its suppliers h and subcor. tractors which are designated as pro-J r prietary infor=ation by SE* And disclosed to L: the employees of Meted or its agents incident [. s L. shall re-Y to the perfc._.ance _of this Contract main the property of 3?d' and stall be disclosed N. in confidence, and no rights are grante.d to C. g. l

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}r duce or have produced any such products or to I' ..a 3 practice or cause to be practiced any such =anu.- E-. facturing processes.... i'he enpl'oyees.of Meted or ' ~ ..k "r

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~. ~. ..'.. e__..,... of its agents shall es=ain en:ployees of Meted F.~ i, m. or its age.nts, as the, case, cay be, for all pur.. {- g poses during the design, fabricatica and testing L-of the equipment and syste=s to be supplied hers-I under, and thet- :alarie:, travel, co.cunications b. p-cr.d living up. as sha11 ca paid b7 MetId cr its [, agents, as the case ma7 be. EY.f : tall have no obligation to provids '. fork =a.'s Co=pensation os m Occupatior.a1 Lisease Act coverage fer any type k,. of employee. BS' vill be I12ble fer p esenal injury er pr:perty danage arising out of such [ ec:ployee's activities at E M faci'ities only to the extent that such liabill:7 is covered by its existing inz.:.rancs policies or progrs=s

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t t.hi.s coctracc.. j 4 ,u. l cenaultation shall accuracely reflect the p best.f idgast.c of SW.

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p suitable off t-* *acilitia* for such individuals, e b who shall, howsvsc, r*.=ain e=ployees of 36, h 6 which shall be essponsible for tr.31.: salaries, j travel and livir.g expenses. i-(c) !To warranty with rsspec-to erec:Lon work:::An-L >L ship psefocasd by, or on behalf of, :4ecEd I shall b=3 i= plied fro:2 the cc. sui.ta:1on services f' furniated by EW under su': para,- aph (c)(b) of h. e this section. Any defec:ivs erecrion vo:+-

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1 [ .- 9 ...sistar.co for equipment and systems preopera- - w. . tional testing, low power testing and nuclear- \\ l .- staan lupply systect perfor=ance j:esting cover 1 a ing its scope of supply as NetEd r.ay reason-ably require. 'I'.'.e tsc'.nical assistance re-quired =ay includs routine testing aquipment, qualified personnst, detailed written testing 3 procedures, review and approval of testir.g f proc 9dures prepared t7 others and dstalled e l writtan ana*7ses and in srprs;ations of tsat ,j i i P9sults. .,, c (b) Representatives of 3'il will :e author!nad Mnly to advise and cenault with Me:Ed ar1 will not ~ be authorized to operate the eq'tipmen. All

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o ? r. W -.- ~ ^~. ^ k, L, L. c n d h b p. F. preoperational castir.g, prell:1:a.-- operations E. r. and dec6nstration of'perfor=ance guarantees ll 4.s shall be performed by Meted. i. 1 .i ~ t, - I C u C. Fuel Suoolv Cl All *rsactor interr.als other than fuel asse=blies are p:-o '*' e:_. - vided under this contract as part of the nucitar steas [. q supply system. 2:e supply of fuel asserblies for the.. *.' - -r l g. }; plant ih the subject of a separate contract between b. + NetEd and 3/k'.f and is outside the scope of this Contract. P G ' N. t 4 P D. Scare Ps-ts P. -t ) 1.! Spare parts =a7 be the subject of...a separat a ag7een.,nt,,,,,;,;_,,,,;, ;, f p g. between Meted and 31.3.f and ars not included in\\t h.e scope. ~.,; - f . of thi's Contrset. 2/,5 shall' provide 7.:etEd with unit i t, . pricas of c r.=: ended s; 4re parts for equipnent 7,,u - [ ni:hed by M, it.c1miir.6 special tools and ite=s requir- . o' N.. t ing periodic replace =ent, frc:2 time to tira as procure- [ \\. t nent prQCeeds. .e k I, f.*. I x I Pa-p. .s y t s s I , o I L O 5 P i. s e 4 g )

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Tee'2t ra ent r_ "g 2 .(1) Cha: res by v tri ' [. e ir i . As B134's work pro resses, it shall furnish to *etEd p the deswings, diam and other data described in a [. .

Subsection 2(1)(b) of Article I hereof.

NetEd shall E review the drawings, diagra=s and data as expedi-R- ( tiously as practicable, givir.g due consideration to I U their co=plexity and to 3!df's procure =ent and fab-E.

ricat' ion scheddles. If :ietEd destres to have Et/J -- --- -

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l tion of the proposed change. 319 shall make the ~ c change if in its c;:inton the change will nec $td-e E, versely affect the -.f:ty of i,he plant or 3/44's (, t warranty obligations. Iae cont: act ; rice and the s-l I ( perfor=ance schedules shall be equitably adjusted to reflect any changs in the cost or ti=e of per-. 7-w i - for=ance due to the design changs. f {j (2) Chances by 9%*~ E 3?E =ay =a%e changes fro the Technical,escription IE. t r without additiccal cost to *.*etTd,1f necessary to bt Cett its guarastati pSrfor:ance or liarranty oo'li-t. Q gations as concainee 1: chis contract. ;,11 other f -3 e.- : t u r. w- .c. .. n,. c m ~ P _2_I 3 7 : .- 2005 - 1 3 7l 2 n 9 l-4 _ w' gg e. g .E.

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....~ l. .~ . :., s - (- m a a. ' ~ - -:.,a : ..; :. :t..,..' . i ". ' - . 3.- .a ~ - - ' -, ;~ - _ _ _ -. u.. ~ _.. :: -e. __.?,- ' ~ - - :+ - r ~ ( . : c. , Q. changes by 2iu shall be subject to review by MecEd [ 's 2 which may disapprove acy proposed change which P would have adverse effects on plant operability ([. 1 or availability.or upon. operating and =ai.ntenance y g-costs or upon balance of plant costs or upon the [ r plant cocpletion schedule. P. l F. i 3. .Chaneds Vithin 3':8s ?ecoe of S'2eot - 92e to [ f. AEC.ieenster Meouiments ~ e I e 1 (1) If, prior to prel'-*ury acceptance, 'as defined c- ,, in A'ticle VI of this Contra,ct r modifications in 4;. s + I M - " ' ~~~ ' the equipment furnished by 3'M are required as a [ n t. C,~_ E , result of requira.nents of the (7. S. Ata=le E=ers:L f-Commission to secure and =aintain an AES const ae-tion per=1t and an.lEC operating license, 2?N shall [ make such modifications at its ev ense. If, sub- ~ sequent 'to ;rtli '. try acceptance but prior to f r.e final acceptance, as defined in Areicle 'ff of this Contract, codifications in the equipment furnished [ by SW are required as a. result of require =ents of the U. S. Atocic Energy C-* saton directly and primarily related to an increase in the steam out-put of the nuclear steas supply system fros its f initial warranted output to its additional wa.r-i canted output, as respectively defined in Article V A(1) and Ar-icle 7 A(2) of this Co:.cract, 22. shall a :a such b e w -- -- T _s. 200aL213 y 1P1213sj [ k

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s I e L {- ii' 1.1 ,? WP k-T . modifications at its expense. De responsibilities ... 3;S of BW under this ;aragrapn shall se subject to the h p p' revisions of Eection E of this Acciale II. b; p . p.. p-3.. (2) EW recognizes that the AZ" operating license may +, 7 it.., 2 ~I contain conditions requiring that some cinicus n. r number of systems and co:penents of the Auxiliary q* G ~~~ ~ 6 - and,,Zagineered SafeguardsjSysta=s furnished by 31W - M. ~~ g pa hereunder cust be operable in order to operate the gi e,' 1 c. ] reactor at the warranted output level. If prior ' ('. to pestiminary accetunce, a.s definca in Article VI f. of this Contract, the AEC reent '=.s, or 5?id specifies, _t A that any system.s or c.om.ponents of..su.ch Auxiliary... _.. D.- .v 'i and Ehgineered h.. .................. Safeguards Systems must be recoved k-from service for scheduled routine main.,anance work in between scheduled refuelings and if such removal r would e v.uirs a rer. twr shutdown or a reduction in E. l load below the warrused output level, E!.M at its Fs-r. expense, shall modify the equipment and systems furnished hereunder or shall furnish, within its h.- i scope of supply, sufficient. redundant systems or I components to par:1t operation at the warranted output lerel. 3!!.C also recogni:4s that the AZC F. r operating license wiLI require that enetain sys-A te=a and co=ponents of such Auxiliar'/ and Ingineered 1 Safeguards Systa=s will be subject to routine per- ~ t iodic test or inspection. If prior to ;r s ti-* --= ;- s + . E 1 I . q 7 i . p ~,2 i s 9 I 2003]2 1 3 9l ~ j a 1 I

a. ...,e ___.m__-_ q ~-

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3 .... ~ ...e,._ g .r - 9,, ..{.

6.:;

" ". ',n'. 7. :. ~. %, :. . a, g. ~~' 's. ..a , q. ? :, r_ ,] a :... 'y_-- T- '-~?**' _ '. '. ~

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~.s.'.as %, x - "..

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n. 2 1-. w a

. ~ - x- - ~ < 'r- =l L - s . q.. ' r.-r.. r,,, c., 1,D. F.y s acceptance, as deft..e4 in Article.7I of this Con-

--A.e

. tract, the AEC requires that any test or inspection P Y_ of systens or components of sucn auxiliary and E: (.. 1 1-p.,. gineered Safsp.tards Systems be c:ade in between T K.f,,.7. n -~ scheduled reactor shutdown, and it such test or M.. ~ '. I inspection would require a reactor shutdown, BW ,.sf.. 1 ~ .w.. at its expense, shall codify the equipment and sys ** E@. ~~ i M tems delivered hereunder or shall provide seans to M.-i l r' l carry out the required tost and inspection without fi'". + - ,; 2 a reactor shutdown. EW shall not be responsible f.[.$

c...

for field labor costs of Meted or any balance of 2 V...:. ey ~- plant equipment or syste=s costs under the pro-I.; .I '...... :--- ~ - - -. visions of thi. l s par %r2ph or_ paragraph (1).-"The.. ~- 9 .. r ? .....,... _-.responsibilitiss of 3W under this parsgraph shall -. f'. i. be subject to the provisions of 3ectica E of this ~ 7*=..' 8 Article II. I (3) The Technical Description is based, wherever appro-b L priate, on the site data for the Thrae '.:ile Island L. site, as submitted to S&W in reports from Pickard, f, I,cwe er Associates and Gilbert Associates, Inc., [ i dated Septacher "f,1966. In the event changes in 1 or additicus to such site data require codifications F. r l l in the Technical Descriptica, the cen::ract price ,8 t ~ i shall be equitably adjusted, u; ward or downward, to l reflect changes in :osts due to such chan;;;ss in or r. i O addieions to th. site eata. t. k..' 1 ?:. C r r _ ~ ~. M ~ 21W k'P 2iA0 2008

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,7 *.;y., ,,a .. ~. s .. - 3. z, _..:. :.:,s. ___ '... - v 2w -. -*. s _ ,:?, a t an t_ ~. t. [ ~ p 3 r. 1. (4) Aa used in t is Saccia-3, the ter=s

odify" or f

'j

aodifications' includa the provision of addi:1cnal

.c. .s p i ite:ns of the kind within 3!.*4's scope of supply as g. ' *i well as itecs which are in neither EF4's n.o.r. {etId's ---- r. ~; scope of supply but whose functions are nore similar - "3 L 2-s; ,,.... to; the fanctions of equipment within 33:W's scope of a' supply ~than the functio s of the equipment in :4etEd's f. i p .c. f supp ly. s ope o r...... _ _. b k. C. Chanres in the ? tent reri-ent oc - St-uet i-es I. t. Not Within M'f'T Secce of S":elv ue to AEC 7 v =- "Licensine Racuira-'ent? 2.. = t g* ._ (1. ) 3&..W.has.f.u. rni.s.n.e.d_.c e..rtain de.s_ign cr'.t eria for.cer-O.... c. ... tai _n..e.quipm.en.t, systecs and structures for the y. '~~~~Isalance 5f the plant,,,,,to be provided by.MecEd, a '~~ copy of wnich is set forth in Appendix 0 cc this Contract (the Design Criteria so furnished being

r..

hereinai*ter refer ed to as the " Design Criteria"). F

Except as set forth in Section (2) of C.41s Para-r i

r graph C, B&W shall be responsible for enanges in !.. l the Design Criteria under the.circu:: stances and [.*. L to the extent provided in this Parar;ra;h C. [ f i w (2) (a) B&W has provided pressure and e=;erature ::e-f r sign Criteria for the containcent buildins

1 i

based upon an assuned contain=ent volune and [. Il heat ain%s.

f, for equixzian: c:n: sin =ent O

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l 1. 5 B?-'Y/- .* qui eV -em. - = w m-e# w ee -- ED, e+?m-en-w e er-t "' WT 199TP*h-1' F1 =#+8 N wrW-y- pWie F#-pPW 1'wWF t1W V 7pfW' ' ' - Tn tFf -'7P1-F "hY F-*""*IF "'MT8MbF"' V- {

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g;- 7,., ; r T..' O-volune and peat sinks, A7C r quir-s that the r ;. m b.

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reactor contain=ent be designed for higher fF. l' .~.-4 r-7. pressures or ce=peratures, this require =ent (- j -t e r.

i. -s,;

shall be deemed to be a change in Design Cri+ ist.t s. r s-l teria ecvered by this Parwraph C only if such. ID ~ I. s s l ~ requirement is for the purpose of contro111ag C ~ 4 -- ~ energy releases and if all 'other Design Cri- [- r teria which relate to the control of energy. [.' *

releases and re= oval and to the AEC require-t-

L ment have been met. (., (b) The Design Criteria do not provide for the .. ~... y failure of th.e reactor vessel in phole or i.n~~,,.....f.'~ 5. .c-I y. l part or any consequenc.e.thereof. f changes : ..v. .... u.. .~. _.a - -.. - w---- in the-Design-Criteria are require ( b'ecause' -- ~ i.. - I of any such failure or consequence, Pt*d shall 4 I, e r 'not be responst ht.= for such changes. i (c) ':he Design Cri* ;. ia for 16arnal missile pro- [t taction assume that rupture of the reactor p i l vessel or. vessel head is not credible and con-template that restraints *.et11 be provided by l MetId to prevent the major co=penents of 'the g i I coactor coolant 37 stas, includi..& the reactor h I I coolant piping, pressurizer acd scean gerier-ator, fron becccir.g =1ssiles. If changes in [ the Design Criteria are required because AZC L Q i t -ta-t F F r r 7--- .n.,,,.,...-- ..o ~1 14_2,1 200 }21 4 2l 2_

^

2-

~ -,;= T.,. -,. qp _ _. - ,' S ~- ...:,..,r- -....,.s.. ~ i ^ ~

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. 'e k - w g - ,.-[,,.,,,. ,I ' ', g.. 7 _ :.. g..g. .. a. ..s...n.. .a:_c. : -. s - ' ' f:,? J,- 5 '..

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e*- 2. L !_. f '..*** f a *., T. ~. - ..%..*y ;. -** ~ ~ - ',7 _ -. * - * ~_-_.o*.- ~-- ~ - '^^:- L. r. N..- l t* ,r. c.. 7 requires protection' against the reactor ves.1el .? or vessel head, or against the =sjor co=pon-

f-f V

ents of the r. actor ecols.n systec, as poten- ~

** tial missiles, 3?W* shall not be responsible

( 4j p ,:a k

4 for such changes.

f.,

(d) The Design Criteria do not ;rovide for the l ejection of core than a single control rod. f a g ~ ' ~ If changes in the Design Criteria are required. - 4

~

G. '. - because of the actual or hypcthetical eject

on-f p

~ of c:so or more control rods, 3W shall not be j responsible for such changes. Q (e) The Design Criteria set forth certain prelis- . Ir[~ -/ O. t inary seismic criteria. 3W shall not be re-b h y,. sponsible for changes in such crite.ria cr for [., P f any geolegical conditicas affecting the seissic P r-design of any 'calance of plant equi;=ent 37s-c' ts t erss or st="-""~es to da provided b7 Meted. p (3) Subject to the provisicas of Section (1) and Section h. 5 (2) of this Parag-a;h C, if prior to preliminary accept-E j ance as defined in Article VI, changes _ in the Design eg: Criteria are required to secure and =aintain an AEC construction permit and AIC operici:.g license, SW g. shall share equall7 tith *tetEd the first One '41111on p c dollars ($1,CCO,CCO) of the cost of =cdificaticns to the balance of equi;=ent, syste=s and structures j covered by the Design Orit aria.to satisf-- the required F. t F , - -, =, -. -. = 3 !P _2 1 4 3 [. 2 cog [2 { g st I i O ~.... 1 "'T E N g===.Ti. M,

o. ..c .. _ ~ l w e. .5 l s i. t .i.:. M. 1.2-..g .' L.' ;;. ; 'f '- '. n.., ., '..' i. ,l _.? te(..y n.M.,.: .i i. ,5 3 A

i... -

t l .r t F. 2 ... s t e.: s 1 k. h changes in Design Crite".a. Subjecc to the pro-l vi.sions of Section D of this Article I'I,. 2?W ahall

g..

c, ~ ~ f be responsible for the e. tire cost of such mod-1.fications in such eq111pasnt, systects and strac- ~ E.'

'f-v.

'l ~ tures in excess of Cne Million dollars ($1,cCo,CCO). {; l (k).'lhe, Design Criteria are based,.6herever appropriate, e

r. a:-

~ _ ' s.- ...on the. site data. for the 'l'hree Mile Island site,_ ~ ~~. Q,

c.

as submitted to 31'1 in reports *% Fickard, f.cwe

.y as Associates and Gilbert Associates, Inc., dated l. September 7, 1966. In.the event of changes in or h" 9-additions to such site data, the Design Criteria p. o.. .T shall be revised by 314 to reflect properly such

... ~

.---~ ~.. - -. -.... U. . changes or additions and'3&W shall not be liablo C i~,.i __ Q , under this Section C for the. cost of sodifying the g;. k,,,. - ~ ~ ~ - - y- . ~..... equipment, systems, and structures as a result of. ( s such revisions in "h-Uesign Criteria. t s-($) Excc;0 to the extm.;. that 364 has assu=ed respon- [ i sibility for Design Criteria relating to the equip- ?. c' l ment, systems, and structures, =odifications in i such equipment, systems,. and stractures which are l, necessary to match any changes which 3W say =ake f t in its scope of supply in order to = eat AEC licens-F ing requirements. sill be the financial responsibility y of netzd. L-l l r. 0 I -16 ~ ,r L' P c-e o a .. ~., m m.7.- - ~. ~. < - e..a r..~.m. ~ .- + ( P l214 Af ~ { 2cosl214 g - w g- .) 1 l'

e 0 4 e b 4 e

e

. r w D 8 4 o W 4 i e

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..~ .s. c n.;- _1- -~ n l k 8 L5. I... (3) If the Dia=cnd control rod drive is both satis-f- tactorily tested, and acceptad by the AIC Divisica a w, s. -y of Reactor Licensir.s by.Tanuary 1968,:"etId, never-.. [,- g_.. t.9 theless,.=ay require, in substitution thereof, a. Q~ different control' red drive which shall be accept-L'- - GR' able to both B&W and NetId. In such event SW and M.; s MetZd shall share equally the increase or decresse fif L. .~. in the cost of the n.2w control rod drive as con-p. ?.. ^ pare'd with the cost of the Diacond rod drive.

.-?.t '

L.,. L tF O. Sit e Suitabili':r-- ----

l.. -

i 9 Q '41thout in any way liciting FX4's te"chnical and fir.an-f. g I. .c.ia. l re.s. po.n.sibil.ity under Article II, nothing in this F. --- w.-...- Contract or elsewhere shall be desced t.o b.e E. r to re...._ ^

fJ.;-

sult in a guaran. tee by SW of the licensability of the F. Three Mile Island Nuclear Station or the suitability of k ~~ r-Three Hile Island as a ** ' e for such statics.

i....

P

g 7.

9 Vf e00 .b t r .e r t O-p = n. -ta- \\

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c v g. -. - -..r- ...n.... __.. Jj =. #.. 1 l P 11 4 6J 2cos 21ye n j p.

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y Article TTT - ?*11.re--. Sch-dule *H ?t sk of Coss A. Delive--- a-d Sihedule r. ~ (1) 3abcock & *111ccx shall bain shi;= ant of the fol-loving =ajor itecs of sq".ipnent by the dates [ '.a specified: b ~' (a) Pressurimar - May 15, 1969 r .J (b) Reactor vessel - July 15, 1969 r i i (a) Steam generator No.1 and reactor coolant V L L. t piping and pu=p casings for staan gsnerator r No.1 - August 15, 1969, and E a x f-(d) Steam generator No. 2 and reactor coolant _,,._ s;, ... piping.and.,pu=p casings for, steam generator. ~ g '.,5 . e. -

7

,1 ...~a..a.,. No. 2 - November 15* 1969 ~. h - 2he balance.of the' equipment and syste=a to be sup-i...... g. ~ \\ g .. plied hereunder shall be scheduled for shipment *n E. [ accordance with delivery schedules to be developed by BW and Meted to meet an orderly sequence of [ b) i erection. 3 (2) S&W shall deliver the reactor vessel f.o.b. bargo r l w Philadelphia, Pennsylvania. 3W shall alan provide Meted a quotation for the unloading of the reactor

p.

I vessel from the bargs and the overland delivery of e e ~ L the reactor vessel to the Three Mile Island site b i L. l for unloading by others. i P SW shall deliver the steam generator and the bal-- ?L . ance of the equi;nent supplied hereunder f.o.b. cars v . t .r. g b .. ~. P 2147 20 cal 21 4 p q { b

... - 2.,f,.

7..,

5 l.. l .~ .y. t .....s A yn t. .. ~. --'e.;. . ~.

.V.. -.. * *

a.-

'", _ L. e ; :*a; .p... 4 e -J*.=. ~ ., =. ~ Reading, Pennsylvania. 52'.f shall also provide i getId an alternata quotation for delivery of the ~h steam generators and such equi;=snt to the D.ree Mile Island site for unicading o7 others. l 1 u v l ? 'B. Risk of toss '.. (1) ' Title to the equi;=ent and syste=s supplied by Bidi and risk of. loss thereof shall ; ass to MetSd ..- [ upon delivery of such equipcent and syste=s in an ] j ~ 'l l ~ nad*-meed condition to dest.,nated destinations. I g BW sh.all be responsible fod any loss or da= age i ,-.j occasioned prior to.such delivery. a m-r j (2) idhen the equi;=ent is ready for shi;=ent and R,,, l h g I shi;sent is delayed or postponed by an7 cause beyond the control of SW, NetId, or 31W at Meted's request, shall arrange for storage of the equipnent aan small protec: it against ^-',s Cros ':he weather l l or other causes. M4:Ed shall assu=e, and shall hold i t BW har:21ess against, the risk of los's or damags i arising out of such storage. MetSd shall be re-r sponsibis for any charges for such stor16e ar.d re-a i conditioning if necessary, of the equi;sent. 1 1 O -20,-

- A a

2---- s. . a m. .,.7 c 200s 214 g; P 2 1 4 @l 3,.J g g

- '. s. -.s - - ~ ~ - - - ~ ~.... _ ~....,,. ., 7. . ^' _ ' ' * * * * ~ ~ ' - - ^,. - ,.,c-- .ct 5., -..,g 3..._,,. .. e - ......-.,*,d u. .g,..- ..e -5 .,, =.t c ~

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' ' ' : '.' " '.'f, ".. v.. .s.. r .j..,, ;,,, _. ..,. '., ' l ..p g p q],,y.,,- t- . ;.s. ?.f r2.;.h;%' %,_ . [.. W.- I a - ! **> ~i " 't.= _.$..<.... ', i.

l. -

b. ~ ~ '

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f* ( Article 17 - Centract Price and *erms of ?ty= enc E. 1 m o 9- >:-l A. Contract price Meted shall pay to Brit for 1*s perfor=ance under this {, tr-c' - e contract the total sun of Eighteen Million *Iine Zundred Eighty-five 'Itcusand_ Dollars....'...... 418,985,000, ?T. t (hereinafter referred to as the contract ~ price). Except as [., p. otherwise expressly provided under this Centract, such pay-p..

n., !

h-4 ment emit constitute full cc=pensation to 3W for all of. the..,, i/ I work,to be perfor=ed and for all of the cbli.ptions assu=ed F.*. g. e.- L-by BW under this contract. ,r... l i- ' c. a 3. Terms of Payment a- ~ -7 7

4

.. _.- Payment, shall be. =ada as follows: <p, Q ~ 95 per cent not cash en ship =ent prcrated as ship =ents E' go forward.-- r. ~ ~- - - - - y 5 per cent net cash en satisfactory ecepletion of-the. , i ~ preitminary acceptance test. If thrcus. no fault of SW, the satisfactory cc=pletien of the test is delay-l ed, then the final 5 per cent shall be due oc days fren the date of notica fres SiG that the equi; ent furnished . ? ** by BW is ready to e*** unless eherwise =utually agreed by Meted and SW. Lr All paynents shall be due.md payable ten (10) *cusiness days [^ subsequent to the date that invoices are submitted by SW to <l - Meted. s r i. I t. w rr r P i 4 t g l r l t k j. ~ .a ...r z l 3 20cel2 L b D l i P 3 i % 91 l g i y

) q r- .?..:. ..B, 1

g.. a r-

..r .. ~. - s y...:., ~. t-

y'+...,...~.--

-~.,_ = q . ~... - - _ ~ w t-j g. e.. P F-c e q;r" Article 7 - ?lant vs--s:. ties ~. A. Syst e - ? e:-fo--~ ~ '. h.~i . r. (1) Initial *:.'s- -a nt ad Ou-- c he { B&W wa.-acts that, when the nuclear steam supply [d ,Ls. .systen is loaded with the initial 3S'.? Curnished i ~ y core and placed into operation, it will deliver l a total of 10,C20,CCO pounds per hour steam flow t" J j at the stea= generstor steam outlet no::les at.......... y-4 v. r-conditions of 925 psia and 570 F. when supplied e. { with feedwater at conditions of 450 F. and IC20 [- 6 7 psia at steas generator feedwater distribution t. y headers and when operated at steady state condi. ~ fi:' .5 h* . tions with,pr.i=a.. 7_ s y st..e. =..l_e_.t.d. own.. at o.r...b..e_l..ow 55..-..' - -.. _. _ P I _ _ gallons pe.r..=inute and =ake-up at 125.N.w..ith.__....... k ...s............. 3 f. . primary system conponent insulation surface te=-

v..

r: peratute at or belcw 140 F. e b (2) Additier al Ys-- t.t-d Cutent L.' ?. I B&W also wa. rants that, when the nuclear steam I t supply systen is refueled with the first reload .s batch and placed in operation, it will deliver a total of IQ,521,C00 po.:nds per hour scea= flow at the stean generator steas outlet no: les at con-ditions of 925 pais and Sc9 ?. when supplied with r C, feedwater at conditions of 455 ?. and 103o psia at'stea: generator feedwater distribution headers t ] and when oparat ed at ateady state condit".ons w.:h T c.. ~. v f ..,c. - e - .t j P l215 0; - 2008,I2{5Of 1 1

z J. ..a n r ~ .. r \\+ v,. i=<.. r 1.. i .:.--c" 5..... 6 1. + ..... ~... :- . - _...-:_.._w. c a.. [. e [ i ~ b' h pri: nary systa: letcown at or below 55 s;allocs per ~ C: reinute and na:cs-up at 125 ?. with pri=ary system T w I. -E-l' component insulatica surface tecperature at or ....,belot: 140 F. I',' p,., '.(3') 'De or.stration of Tnitial and Additter si E. - a.. ] War -anted Cut uts

i. i *"

.. Fs..- (a) 121e perfor=ance tests and perfor=ance calcu-p-. q ~~1a'tions, unless waived by Meted, shair be cade. l in accordance with the edition of the test code E l j L t for Statiocary Steam Generating Units and Steam

h.

.i ..;,, Turbines of the A= arf.can Society of Mechanical --~ ~ - -... r 15, 1966,, Er.gineers, effective on November y-where applicable. The measure of the perfor -" . ;i Q. tu e- - - ],:5 _ :manceL anall be the resulta of suchstests.--- Pei- {,, i Y- - ~~' ~,._.=:.. l -- -.-..-~.. .a formance i:alculations shall be based on the ~. ' ' steam tables in the latest edition of Ther:::o-j' s dynamic ?rcperties of Steam by J. K. Keenan and r F. O. Keyes. Cther tests shall ce conducted l' in accordance with applicable standards of the American Standards Associatica, Anerican [ Society of Mechanical Engineers, A=erican In-l stitute of Ilectrical Insinaars, and the Heat 1 I j Exchange Institute. ), (b) The perfor= aces tests for the initial and ad-5 - ditional warranted outputs shall 4ach be ccn-E 1 n o ducted.fithin 60 days, or J Ich later data.23 m -23 2 9.. f L. .1 e y = 2008 2 1 5 17 g! [P 215 lE 7; t. i

--~~~.-- f.,--.-.--- . t 'g,. { ...r,. .f, 3 t,%. s r...

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... i. : 2 .,c,... g.. .c.. =. -n .~ s. . :<J. ' -. _..n r. i'. l ~ r.>: [. ~ c may be mutual 17 agreed upon, after notics to t .r ". ~. Meted by Ba*J that the equip =ent is ready for !?! testing. HetLi shall furnish qualified test 't and operating personnel for such tests and 5 1 p l sha12. bear all expenses of testinj; except fc. s L. I o. i the salaries and expenses of the technical 5 I personngl f.zrnished by 3F.i o sape_mrise the y " ~ ~ tests. By. mutual agree =ent with Meted, with , {., l 5' respect to the number, extent and allocation p, t F .I of expenses, 3'S cay arrange for preli--1' m' 7 - y.. tests befors issuing notice to MetId that the l g' ~~~7..- equipment is ready for testing, t a ,, n {8 B&W's representativs shall have access to all Q -. ~ ~ -(c).... applicable test records, and a com;\\ ete cop E . l P r-of the test data and results shall be fur-nished to Blif. s t (d) *The tests shall be coeducted and the equipment l a-shall be operited in a =anr.er acceptable to both Meted and 3&W. Conditions under which r. J the perfory.ance tests are to be conducted [ u f shall be agreed upon by Sud and MetId prior i. I j to plant startup. J' + (e) General perfor=ance data for the equipnent are set forth in.*ppendir. *. It =ust be recog-nized that the perfo:::ance of the equipment e cannot be ena tl~ preditted for eva:- possible P

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g -a-

. g,

.J

)

}. , s-5 f P l? I 5 2: 20cs 2 1 s g; l h ___i 9%s.*= --*S

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1 l = ,.~ ~ ~ -.n_ ] .'.,'i.4. s ;. a '. . ~ ~ * - ~. -

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.h.' h oper.ating conditio*. In consequence, the data {L presented (incl.uiing the perfor=ance curves

2 and the perfc. ance indicated thereby) with t, t the exception of the warranties specified in h.

r Subsection VA of this Article, a.re intended p- ....i ?: 7'. 1 to show only the expected operating results. p 3 e I-(4) Condition s of' e arfo--enc e 5'a m.tt es..._ _- _.-.- - 9,... i ~, "~ ~ ~ -The general ar-angecent of equipment =anufac- 'F~ (a)

r..

i. -

s tured and furnished by 3?S, and the general y, - c., design and arrangement of related equipment t. furnished by others, shall be no less favor-f X. . +& - able, as deter =ined by both NetTd and B&W,, F ~ e ~ ~ than indicated on the arrangement drawings, - I

a. '.

..... ~. ~ ~ - ~. ~ .(b) The equi; cent and naterials supplied under this i ~ contained in the Technical Descript40s. f.. i p, f Centract shall de erected, operated, tested, naintained t"' rotected fres ds= aging agents L' by Meted in accord.ance with ;;enerally approved f i practices and with all reasonable operating [ and saintenancs procedures and conditions of ~f

i..

i services which =ay be specified by EkW. y I t'. 1 (c) MetId shall provide, and saintain, these ser-

l

~ I. 1 ? vices, equipnent and =aterials, to be supplied e by others, which affect the operation of the - f services, equip =ent and =aterials supplied under this centract, in confor=ance etth g I r -2s G L c r' G 1.': .,,, = ' ' L -, j.- - w-

p.. v.

1 200s:21 g at 2'g i p l2 1 5 31 1 l ~- 1

i--- .a ._N. .M. y:.-;- w ::r - r - s y.. ~ o *m:;,;. . ~ a.;. ~, .d. ~ f ~ ... + . - e-s / ~ 1. .:.,.,....g.,..... : -... 6, ., -... e ; .4 .S,...... f, g . ;.., ;. r,.W.. ;. m ..s - 3 -iji;c.T*iW..:s+2 -& _' *:~-: * - - - - ' J2 = r_.-- " ~ ^ } .-,( ? r, j e i y w P' ,d h i. generally approved practices and having char- ,2 c,.- acteristics which may be reasonably specified i-6.- + z. by B&W on a timely basis. o s-- c -(d) All heat transfer surfaces shall be clean in-b . ~. 9 side and out. r,". g c (5) Reme+r l P

~ "(a) 2&~I sh$11 'repa_ir or replace and install equip-g..

~~. i. e-nent and systens supplied by it as necessary.. h to enable the nuclear stean supply syste:s to b demonstrate the initial and additional war-p. . ranted outputs. y'.- j t (b) Meted shall deconta=1cate at its own expense ['

c..

.. J..._._, all the equi;nent and.. syst.e:ns.. o be repairet - - - '- - 3.' e ce replaced as well as the surroun' ding area U,- .. if n. t I ecessary. g ~ to facilitate 'such repair or, re-h '. i placenent. Me::.d shall perforn One decentan-Anation and snall reduce the radiatica levels r. L. s l in such areas and ft em such pa.rtJ L to peisis-sible levels. Per:sissible levels are defined i } c, as those prescribed as acceptable by the AEO t r, at the tine such repairs are ada. If any b, g national, state or local regulatory agencias V E having jurisdiction deter: sines th.10 more .s. i stringent levels of radiation are necessary or i desirable for protection against radiacion hazards, the nest strir.g3.t of s ;;h levels ir. 'F -;s- 'L. P y i M r - ~.= ,-s 2154 [P 215 4j 2M n-4 l -- L- -

x,..,.. -... - .....:. -J% . -'.~.= 7. ~ = " x

s., -

.s ..~..~.s.,..- ~ '.,...... ::., ):: $.R.:.. (* '...'..Y. i.*.:, '. '. : ~.',l. - ^ l.'._. 2 i.,d . ~, y.. ~ .^. . t.

.+.,

, y.. i. s'.h1. W; 'i '. u. V.' h...' '. - _ Q.f..i.;!. %. s.

~~: .; '... ~

,s ~ '. > ~ ; *:._ _.- 2 %r').... g.4. {' .L r i t. 1 s s r. .then izt eff-c shall be dee=ed to be the stan-Y dard to be acnieved by.*:4tEd's deconta t-ation

i p,

l H efforts. p .4 C. ...T .s _..,..~: -,. ' ' -. ~- f.' .a m. 3. Desfrn. k'or'c-anshio and '*ater* als-.~. .T c. .,j (1) War sntv ..'*.7' n., r. N a ~ ~ ~ ~ - - F. g BIM warrants that the equip = ant, =aterials and ser- ' r (.. i vices supplied under this Contract will be of the L '. l l I Y.- .. kind and quality designated or described in this 2. Contract and in the Taah'M-*1 Description and will ?. p., . be free fros defects in design, wor -whip or ma.. . g; v

s..

i) terials for a period of twelve (12) =caths from r I { '^ the date of preliminary acceptance, as defined in f Q --- Article-VI of this Contract;"except thapror an' ~ g. ~ - - ~ r j .. _... -..-. iten having,,a, s,ervice life oc less thatt, twelve (12) months under nor=al practice, the acp11 cable war- .*l s ranty cars shall be such shorter period. Any re-b pair or replacement under this warranty shall be r. t-rewarranted for a twelve (12) =ench period from t t the date of the initial repair or replacement. t-t. (2) Conditions G. r (a) The equipment and caterials shall be operated, r I tested, =aintained and protected fres damaging i i L l agents by MetId in accordance wi.h generally i l ( approved practices and with all reasonable operating and sintansnce ;rceedures 2.d j P I : P = y> _~... _ _ _. _.. ew c I 2_ 155 : 2008 2 1 5 S'i i -E } }

~

. ~ 7. .~ -v.'." --:"C~~'^^^ . ~ ~ - ~.. .r- -.. ;.. p e

~,v.. -

.., ~., >. g.. -.., - :.~ .e a. .x. + ....r.3: ~ ~ :- r .y-t..-.. ,, };- ' :., '"g.......:,.,.,,, y,,. y. >,.,s,. s, ..r -

. w - p t-

..,~ Q ;.. b :.' ' l"i!K % Q ~i,~ f.'L--L.:. ~- M:-Y_' ^ ^ ;.- ~ w L' V. i t. t;-. I -T s. e. Q conditions of se-1:e4 which may be specified Q*, f C* - t --a by B!5.. ~.. g.-~:

k...,

I (b) NetEd shall p otid3, and =aintais, those ser-i,

c..

vices, equipment and =aterials to be supplied E.f.. 9 . -j by others which affect the operation or the L~ ,s ,i (*'.*. i l services, equi;:ent and =aterials supplied under r;.?- this Contract, = confor=ance with generally [. - - .au.. approved practices a.d having characteristics - 0... c:.- which =a7 be reasc ably specified by B' 4 ' i. -N'. 4 r 6 -s.

r*9f.'

^1 on a timely basis. C-r- (c) Meted agrees to sec:re and preserve, for exas-e.:,

g..

^ ~ ~ ~ -' ination by.3!d, appropriate records of operation.. ,,y f g and mainta-2 ice adequate to enable the parties [. O... ......... -. ~ * " - -to. propac 17 ascertain. their rights and duties------- L-- p.. - fI:.5_i \\. e- .._..re..' arising out of the warranty of this Article V. +.- w (d) Meted shall give written notice of each cla1=ed I.' -r defect to 32M wi:his thirty (30) calendar days (. g.. from tas dato the defect is detected by Meted. g. No claim under ths sarrenty specified in Sub-i t section B(1) of th's Articte V shall be =ade. (' i l unless notics thereof in confor=17 with this m V paragraph is given by !!stEd during the tenurs s e-l l of the warranty period. E. 3 (e) :4etEd shall decosts. icate at its min expense t all the defectivs ; arts to be re; aired or p reptacee as wett as the sur-odceing a sa if 1 i t .e. I t 1 s. p. p ~_ 2 1 5 6' i p2isg 2002 e - J . = ~ --.__---y

~. d., ?._}~7." :W-T.;.- c-- ., e- - P -r&. :- %.~.-. 'E14 - - q -.- g w W....,a. . a. U. :~.,, - g ~. w. .w ..n... -,. .s.- . a,.-. t.... a -;.,J a 9_ s~.. y. t, '?.i:.L T.. - -,. f.d._. *,. ;..._,,~3 '_-.' .v

cy...;: .,:u.

.v. . m ..i.

r. :.: - :

i;_. v. .~1. ;3-i -P ~-; -, ~ yf - 2.

i. -..c --

~c.

3

.c. _: 4 - P-I r-k ^ p- { 2.g..< {f e - h necessary to facilitate such re air or replace-r....

b...

cent. MetId shall perfo:: the decon:n=1 nation g:. O

l

, and shall reduce the radiation levels in such pD (.: ~... areas and fren such parts to pe =1ssible leve'.s. pc. ~ ~ ' ..j 6-Pemissible levsls are defined as those pre-it,,' l tl., ~ scribed as acceptable by the AEC at the tine p

e.;

t'.* - .~ such repairs ars =ade. If any eational, state p- .' ~ _1 n 4 or local regulatory agencies having jurisdic- ~ p.'.. tion deternines that nore stri= gent levels of k-w ~ ~ radiation are necessa.7 or desirable for pro-L I -k tection against radiation hara.-?.2, the nost t, - - -f,l stringent of such, levels then in effect shall [n ' ' -f ~~ i' s -. be deened..t.o.be the standard to be achieved by ?: MetId'a decontamination efforts. \\ [. '.7. e (3) Rer:edy (a) T.I!, upon tinals uotice by MetId, shall repair, (. or at its opt:.cn, replace, an,d install any part P.** of the equipnent or caterials supplied under E. this Centract which fail to conforn to the Ly warranty in Subsection 3(1) of this Articl e v. (b) If St!W does not repair or replace zuch defec-7 tive part within a esasonable tine after writ-f* 1 b ten notice of such defect is received by it, "E or if any energency exists renderina it 12-t possible or inpracticable for MetId to call -] upon 31G* to r spair or esplacs tha iaf ectivs r- .a. t \\ j v u.. p -+ 2cosI2 g 71 i [P 2 1 5 7} i k ~.

e ~~ ~ -W -,. s v.....; w - -, s. -...u... - ~. ..e-- - -- ' = - = .2.-.-- ..i

...g.. -

'.;g.. 4.' ., ^. ~.. 7.. - r-.. _ _-, \\ . i. f*(..? ~' ...a :.s ..j- ...}.,. 3 ,, -..- f- -. .L~i. 8. c = 1

.Kg * *,.

e. '

.c

s. L /.. t c.

.g. ?,. 1. _v- .. ~. - . e. a : -;. ;;', ;n-w _ L. - - c..~. _. o:. - - ,y-. y F. .n - i r. y s g..... parc, Meted.after sri ~tten notice to MW sha'll

}f '

~ s re... make or cause to be made such repair or re-f*. w; x.-..z, e , a placemedt. In such evenc, B&'.i shall rei=ourse 2 N *c. 8,s..., w.. o L, Meted for the reasonable cost of the replace-

k.. f. -

.c L.s- . l-ment part,, including the cost of insta11ation S.,,. ' and labor l exclusive, hexever, of any charges .. T..:, c. P... [ g* ' y _ _. ~ i _ . for decontamination p.s F.. ~ ~- (c)-. The liability of 3&W under the warranty spect-fied in Subsection 3(1) of this Article 7 L. -f% 7;- shall be limited o the cost of repair or re-w.;.. ^ u.. placement of defective parts including instal-W*- c; 1 e-lation, as specified herein. B&W shall not Q- p ? r ~ be respons..ihre~ for the suitability'or. perfor c-- u ,.m F. mance of =aterials, equip =ent or ;qrts *urnished,.. v. ' - - -. ~ - -. ~ or repairs =ade, or work done by others, or for..... ' ' " i; r any loss or expenses arising from such work, (( i F. material, equignent, parts or repairs unless t;" s the work is specifically ordered oy MW. I .w t s I e L R. ' t. 6 L t 2 b g t 6 uh I, h I eg ~. .,~ l I a / ..p g. g ~, i P 2 1 5 8: 2cos 215g

E e ~ o w . ee i'T'. * '." " ~r w...,. &~~. - -. " w o -- _ ~ . f *-- "" n

~.

o j. .. d'}',, f I*,. * '? ,,{._T ls, . '. ~ n_ ~ = w:.y>_..# o..wu:.. 7 l ~- i ,Q

4.. *,,P ? "g"..,*,*.=,*

.,.;*4 '

.r.'.... : -

et ..r. ... Z. 3 3_ \\ f 8 .., ;,.. % -. :r -&. 2;... >w -4_ tm... ~. ;~;....,,.. zy :-- --,;- w. s, .g.;_ y; , m_ - ts;- - c j J A I = nj t s 4.., i Article 'N - ? soce-stional ?qsti t, =3,11 t 3 i i .- 3 and F1 al Acetetsnee p ! :..,*. a- ? C '- W- ' 1

' ~. *.., ~

A. P-ecoerstional Testtez 1 . '~ E', .~

".g-

+ As the equip =ent and systa=s supplied by EW are instal-l ~ l.; A,.. j .~1 led, anii.as 2?d.f and Meted agree that such testing is - d appropriate, Meted shall conduct and supervise preoper-I

r i,

- 6, sticoal tests on -such equipment and systa=s." Eld, on.- a timely basis, shall propose to Meted, and 2&4 and MetId i i I , f, shall agree upon, operati=g or test procedures for pur- ~ 1 poses of this Article VI. The objective of such tests 3 shall be to demonstrate that the various equipment and .9 systems perform satisfactorily and =cet the design and ~ ....... performance. objectives specified for such equip =ent and - ~ - - - _,, 3.. systems in the Technien1 Description. 'eihen the results -y;,, i .h of a preoperational test for5 a's equip =ent ite:s or system ~~~ show that the design.ana perfoc=acce o' j ective has been - o I satisfied for such ice.s or system, Meted shall so indi ! e i cate to BW in writing. B. Prelimina:=r Acceetance Upon satisfactory co=pletion of all preopentional tests i on auxiliary equi;=ent and systems supplied by SW, and upon successful de=enstration of the initial warranted output ( Article V A(1)) of the nuclear stess supply sys-tem, Meted shall prel'

9m-1*17 accept the r.ucisar steam

] supply syste.= and the auxiliary equi;=ent and sys:s:s to 31-j l y ci, .x t P 2 i 9 91 200a 2 J, g g .ty O 3. e m

<.~~~..[---* ~-~ .e - - ~ ~ ~~ ' s. w. .. ~

3.

'..)... p }, *. ). .}t,- .I~. g . f-Q^ Y. ~. a c. ...~ - l. .c. g, -. a. 9. s.,.'...c, .c r - ..../ t- ~ - w_. r.. z.;.~.g. .e-- ..~ ~ - .. ; v.'.-n . ~. .. = _ '... e - ~.. _ _ .~:. " . n~ =- -.w.':. - \\. 1 I ~ T (- 6.f' l., k p h 'P.AW in writing. Such preliminary acce;tance shall dis- [ L

l charge B&W frcs its obligations ur. der Article V A(1).

i. g - 5 E r,. a. 3 t i. c' J. ..... C. - Final Accettance L- ~ . u ' Upon success.*ni demonstration of the additional war-anted b output (Article V A (2)) of the nuclear steam supply sys-

I e

-./ in writing to 3&W, the ~ 7 ~~ tem, Meted shall finally accept, r L nuclear steam supply system and the aux 111ary equi;=ent F and systens furnished hersunder by 3&W. Such final ac-l g ~-~ ceptance shall dischargs 3&W froc( its obligation under n(- i ~~ ~~ h Article V A (2). ..,r r [. ..:D..._ Relesse b'r F-eli-* .?- r a-4 Fical Aeeentar.e es..~ .s... No acceptance under this Article VI 'shall re1dse SW -.- 5- - - s. from uncocpleted work or from warranty or other liabil-ities, which, ty the t.: cf ti.is Contract, are not [ s expressly discnargea a.as prelinir.ary and final e. k. 4 1 acceptances. r F. g .r. l-t L I P o L 4 f' b g ] ..g 200,2 Q M. ] r p 2 1 s_ ~b t 4 L

.. ~ ~.. __\\ .}. -M, e ~- '~- - ,.,a... m. ... ~ Y, e ..y. y * ~ l. e .s .. :. ~%.

T-e
,1.'-

s. -{ i.. r. +7 l . _...~...u-2 n.- .n.x : ~. - - ~- -,- -_.:s I n. i, :.

t--

L.. t s 0 + l

r..

O \\ J ' Article VTI - Thdeenity and !crurs ica A c. s A. HetEd f". 7 ,, ' 2 (1) h tha d' ate that rise of loss of or <*'m';e

o the 11 i

W ' equipment and'systens furnished h tro.nder pas.ses to - , 7, [.,,-j Meted, as provided in Section 3 cr Article III of (*]:' 7v l this Contract, and until the nuc1:.ar energy property .c. C.. [, : insurance.is acquired in ccafor snee with Subsectica A(2) of this Article, MetId sht.11 provide and maintIin b p;

,,. 9 insuiance in the names of M: tid, 324, its supplier:t and 5.

subcontractors, cover 1* g the equi; ment and systems against,

h-1, g.-

reascnably insurable risk.s of loss of cr da=sge :o the- - " 5,.* equ1pasat. ~~~... ~ I -:y. _ .y f. s (2) Meted, prior to the date of receipt et fuel asse=blies 'at r.'. .. ~ 6 - r~

~-the-Job-site-will secure and c.aintain, at lqast until final.

C l ? i - -acceptance, as defined in Article VI of this Centract, t ', - E nuclear energy, property insurance in an anount equal to the P. completed value of *.he project or equal to the -ni-- tc:.. ancunt which es.n be secured throu6h the insurance pools 2 (REPIA and/or '.iAIRP), whichever aucunt is lesser, under 4 s1 wbfr.h SE*d. will be a cared insurnd. ' Such insurance shall ). .L. provide that MetId ar.d the

nsurance carrier, or carriers,

) waive any and all rights cf recc*.'ar7 and/or subregatica s. A which they or any of *. hen,cight have or acquire assins: Etd, its suppliers and subcontractors. f g f.s ...... 7 -. .hj &lll- / l .t b ' .k r. I -,.-.w.~-.:-c--- m. ~ sy

1 e.

Tl - se - 200s ? I s U - '!P 2 1 6 11 q 1_ ) =_

l ~ 2 (* f *k J ...,-,'.' 5 '(' ~... v [_ 1 .6

.r.

3*__ c_ 2 _ ~... s.. i k g I h (3) Me:Ed agrees that the .2 erial, equipment and/or w services to be furnishel hareunder shall not be g i used or operated in conr.se: ion with a nuclear or atomic energy activity or facility unless and un-e til (a) HetId shall have entered into an agreement 6 of inde=nification with the AZO, as prodded under I L l Section 170 of the A mic. Energy Act of 1954, as amended; and (b) Met.?d shall have obtained such - - - - - policy or policies of insurance, or shall have pro-1 8 vided financial protection of Juch type and in 3 ) such amounts, as the A7,C shall require as a con- ) dition of its entering into the inde=nity agree- ] m \\ s ment referred to in f a) above. Me:Ed agrees thai -.., BW, its suppliers and subcontractors, ghall be....-- *..ll:- ~ I included among t.ie persons inde=nified under (af r above, and among the named insureds or persons l i protected under (b) above. Meted sq;ees to cain-- I I tain such *ndennift:2 tion agree =ent, and insursnas .4., t or u aur financia. rotection in futi feree and effect in conforn3.nce with AEC regulations, and f generally accepteCutility practice; so long as f p i the =aterials,' equi;=ent, and services to be fur-l niahed hereunder shall be used. (4) Meted indennifies and. holds har=less 31+, its sup-( pliers and subcontractors against all lossas, clai:2, danages or listilitias arising o: of or i L

'Y.,

k \\ t ~3 6 3. ns=w ' a k,, al2 20ce _~16 21 1 IP 2 1 6 21 ~ ss i .]. c y gm ,MM- .~i... ?.'.".*

.. _ s. I . ~. - - ~ .(,.. s s .- i - 3 s y . ' ' * :.}. ',. '.,. *:f = . f*.. r .__s

Mu l

E_

^ ~~ I y +

r

',.r-3 a / based upon bodil7 InJur7 (1"Cl"# '3 #** -l tine resulting theref en) ard loss of W M' i f to any propert7 1ccat ed on or o*~* '*'2e s%te when-N t..y ever er wherever occurring, when due to the ces-gf 11gence of

tat, in the perforcance or t.51s c.

l ( Contract. or in the operation of the 'I'h.ree Mile , Island NuclUar-~ Station, *or regardless, of negh-........ - g.. gence whm resula.ir+- in whole or F2PC d1#'"I17 # k S,..*

indirectly fron 2481**# #****i "'

tion, or radioact*ve conta=1 nation, result 2g N incidents at the site, whether controlled or un- .s Q, controlled. f 2 3,...pg @ iL *.. ?

g

..., _.. -..... ~ (1) Except to the extent Meted is or woufd 3e"ccc,,n.- - -.. 3, ? sated n insuranesi secured under Zection A of this. .e, Article VII or by Meted's other existing insurance [ covarsge, 3R"* indemnifies and holds harnless Meted h.

/

against all losses, cla1=s, damages, or liabilities b arising out of or based upon bodily injury (includ-g i' ing death at any tine resulting therefro=) and loss E of or dacage to proper:7 occurring pr*.or to final r j acceptance, as defined in Article VI W the Co,n-k . tract and due to the negligence of SW, its sup-pliere m* subcontrac'=:1, provided such bodily injury i. r i O ('""""'**'"**^^7"'="='-"'""'"=)'=* . [ ( r. N,s F x

- - - - '"M~

,e, = - - --r q ,(,.. r -,-

r. 3 -

,4 ,a .s 4 }.,;,em &- w* r s ~ 2 p; 2 i 6 af 200s 21 g 3o ...g ,m

+ ~ 2 -. .g.--a 3..... ~

.: o -

l . '.~.. ,...,,, y. 3.; - n.,. ,...e. .. :o. s g.t.. e t y. o ,.s v, -....... ' ;;,. t,: v;.

t.-

.-.. w,. .s>.:- ' ? *.^.-(.Q-j_}';C e *.1. *;_..:... $.. - E l. l k. 6 l F. n l f. -t g I - h loss of or da= age to prepsety does not result from [h.,- 1 4.. i-or is not caused in whole or part directly or in-f.- ,. M directly by nuclear reaction, nuclear radiation, h, u - u~., ' or radioactive conta::ination, resulting fiom inci- " v.. N:w. dents at the site, whether controlled or uncontrolled., - p.". ,. c c ~ (2) For its own protection and f.or the protection of - l' '.. g.e - i [ Meted, with respect to 3(1) above, 311. at its sole .f ; ) expense, will secure and caintain in force (and shall l cause its subcontractors to secure and maintain in E '.<,- ,r. } force), during the ti=a employees of Staf or cf 'its {.* ~ suppliers or subcontractors are present' at tho' ' - [.; 5 Three Mile Island site for or in connection with k ;,' + r-the pe.rforma.n.e.s..of site work. or operations. policies....... _.. t of insurance of the following types: .g p. (a). Vorlamen's compensation Insurance with 11 nits- -- C ' '. .r. of liability a: 1.ast a4 high as the sta:utory S..

f.

limits of Liao.ncy in any state in which S&W [,, i.' may be required :o pay co=pensa:1cn; I r (b) Employers T.iability Insurance with 11 nits not i' less than $5co,cco for each occu:rence or r diseaset v j t + (c) Comprehensive Automobile T.,1ab111ty Insurance including owned and non-owned au:o=obiles-operated by e:picyees of El.M or its suppliers or subcontractors with bcdily injury limits of f. O

* ' ' ' " * " " ": ' : ' ' * - " ' ' = * = *

e 6

26-e l. 'a s = k ] -'f 1 .N 4N w-- u.

a

( P 2 T@,k. i 200s 2 L.@ M I L

a . ~ _.

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.e,.ev== ,;.= e.:=n. .-*e --s e.,,. . e...- r. ., w t to 4, 7 se ...o.,. g?-.., ./.. .... g o. ...t..- g. --..z..;.e.. y. ..g.. e s. .u.,., ...,..,f. _.: 3-... _... ..? ,. a. 7. m . ~; .,a... ..s.s.t....,.:., i 4..f.. - i 1.. r.i.-.c t- .' 4...: t- .-~ L,... s....?... ~ s less than $3co,Cc0 for.each accident a.nd with. j property ds.sge 11 sits of not less th.sn $100,CCC i r, ; per accidene. d 2' w I ~ A certificate of such insurance cust be filed with j .I and approved by : ecZd prior to coc=ence=ent of said l woric or operations at the Three Mile Island site. j l. = = = = ~,,... l 1 4 i 4, ) 1 . a. -~ ~ .. ~~ .Z c..... __. :. -1 t j ~ *:;~..e. : .. :V ' ... ' ^- ~

..---.. = = - -...

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g ~. * :. -.Y L e,...t_. -::.. i. a. ~ - s. u= g ( L-e 6 t b V. ., h ~. Article VTTI - ?st ent Inda-itr y. A. 3W shall defend at its cwn expense an7 suit or, action p. G z b.rought assinst MetId based on a claia that an7 individ-g,. c ual piece of equi;=ect or any syste:s furnished by SW [, hereunder, constitutes infringement of an apparatus or [ systes olats of any patent of the United States, and BW shall also pay all costs and <*a-a: es awarded therein against Meted. In case a.ny such B!?J furnished equipment L. r or system, or any part thereof, is held to constitute {-l.- , infringement,, and its use is an,'oined, I'.f.! ;ro=ptly shall, L ' ~ at its own expense, either procure for.**.atEd the right to E.' c. i continue using the equip =ent or syste:as or replace samo- ~. -[ a - -. wi.th non.inf.ri.ngin.g equi; ment or systecs, or modify it. I. la so it becomes non-infringing. '4here Met?.d has given writ-F I e ten instructions to ZaN which direct (1) a specified =anner k.' of perfor::.ac.ca of the cen;ract ur (2) a sp ecific design or i arrangement of the equi;=ent or a part or parts thereof to u. g j be furnished hereunder, other than a - er of perro:.ance, design or a:*rangn=ent, proposed by 3L~d, :-:ecEd shall defend [ 1 at its own expense any suit or action cased on t. clais ( that the equipment or a part thereof furnished hereunder I i constitutes infringement of a United States patent, where J, such lafringement results from such writ :en instructions, e and. MetId shall also ;ay all costs and A-ass awarded r therein against B&4. O ~38-s 5 7-b ecos@_14 6 i.P 2 1 6 6t-e a ~ _' n

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e assertion of any claim for w:.ich indecnity is sought is J. g given in writing ar.d unless the ps.':7 see. king inde=nity

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t~ ~ makes available to the other part7 all other needed in-k forination, assistance, and authority it possesses for the r ~ ~~ defense of any suit or proceeding in whi.ch such. claim i~s 1 ass ert ed. ~ ' g. I k' 4, s-k. i. ( g . -.... e Y3 ( ~m i s. i ~ .w. m.. . ; v.... m y- ,,......wj... \\ P. .a. N' E l m t 6 C b. b s. F d f* V l N i h k-b.; i e -.t l t i. i b l O P i;. b L V, 4 mp .w -s .i p 2 1 6 7f _ 20=094 1 4 N ~

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_...-x; . ~. ~. :~---- - ~- t. E i r P i r l l r O ~ l. Ar 1ete r - ce e:-. est am:rer1 setees F l The parties recogni=e that certain construction per :1ts, 7 f licenses and other gover==ent authort:ations will have to be (. obtained fro:2 the AEC and other federal, state and local s f" ' i agencies. 21W shall obtain all authori:stions un*.ch are re-y l i-c quired to carry on work which will be perforced in its own c r: facilities... . Meted shall be.~esponsible for obtaining all- - p E 3 _ authorizations for work at the '.'.' ree !!1le Island site. g ~

h.

A. AEC ticenstne p p (1) HetEd and B&W shall provids such' reasonable assist-Ic. i ance as may be requested by either of the other ( ~ t ~ ' ' - -. ' '. parties in obt.a.ining th.e. necessary AE.C..authori. c. q. _ zations. N , L' _.,_,,,.-,;'*-,-1-,*,--.'---e - --- ~ p-(2) E&4 shall perform the nu'c1 ear safety analysis for ~ - " ~ ~~ F' its ::cpe of suppis for tho

res Mile Island Nu-j k

i clear Station as.equired for Me Ed to obtain an r AEC construction gemic and ope-sting license auth-f I as { orizing operation of the plant at the initial and h additional warranted output levels. F i r-(3) B&W shall prepare, for Me:Ed's review and approval, I 3 or assist in the preparation of ( (a) those sections of tne Safety Analysis Reports I I* to be submitted to the AI* which relate to ? i nuclear safety of SW-supplied equip =ent, sys-I t tens and services; .r -g-A c F. p V 3 - y ,.. 3 - 2cosl2 1 6 g! P 2i6a .s a

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.xr 3. 9 r ,S . y. *i - t s:.: 's.,,. ...:.a. ~ =...- - " - - - -.. --: I ~ C ty. b.. P C. [O% (b) other repcres, data, descriptions, drawings . f,. l I i e and calculations, which relate to 3W-supplied ' q l s. kJ equip =ent, r/ stems and services, as may be.... - 3 -- 2,;:- reasocab17 requested by Me'tEd to o'otain the. E. w.. P**- necessar7 per..its,11benses and approvals for b " ~ -. _ _. - - - c the construction and operation of the plant at b.- t . r.- ' "e-t A the initial and additional wa.--anted output 4 - - ~ ~ - ~ ~ ~ ~ ~ h . levels; and _ _ s j ?- .w 1 (,c) an7 reports which MetSd is required to =ake to 3 i the AEC under the T. hr.ee.. Mile. Island Nuclear...... [J3 r'i-Station constmetion per.it and operatic.g 11-hl-O j 1 conse, to the extent that such reports require a _.----- - - -- infor.=ation,which-ir developed by SW and re-- l.. Suh_.. reports . C .la. tes t.o S.W- - scope.of supply. i -~ shall be furnished by FXJ without additional F-i cost to Meted. if required prior to final ac-i. C' captance as defined in Article VI of this Con-k. c. tract. If required thereafter, the reports f' I shall be furr.ished at a charge which provides ~~ k-BW with reasonable co=pensation for the ser-l. ~ f vices rendered. I (4) BW shall furnish the se.mrices of s';ch technical r personnel as SW and Ze:Ed consider necessary to =ake presentations at =eetings and hearings with E I i r the AEC. .l Q (5) '41:h.the exception of the res;ccsibilities accepted (- l s -ut. t I t ~. r g! 1 ...; - ~. = c

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-. ~ =. .1. l.'s a n . j - ..,=,%.'.. . -.. ~.... ;,-. - - c...... s, ..e.-...a. -p.- p. .y .s a l 4 .2..- a.,- L {.'. r p. p. c. h, by a'Zf under this Contr t all co'sts incurred in { _( obtaining AEC -authoriza-ions, including the repro-f i l2 ~ s . duction of the prell3L'f.7 and fi..a1 safety analysis -p I. ..,.~......?. ~ poports shall be the rt:sp.insibilit7 of Meted. p., [. ~ ,a 7 3. Rerulator.r *.co-oh ls ?w othaa Co ra'- -- tal. - etes b j Meted and 216 shall provide such reascnable assist-i t I-(1) [ ance as.*:ay be requested by either of, the other r. l i parties in obtaining such authorizations. t ~ All cost incurred in obtaining such authort ations p" (2) shall be paid by the party responsible for obtaining j . ~.. .'E the particular authorizati.on.,. ',4,.,_, ~ ~ P .~... _ y =. = ... r + - a. w...._. _. g. _.c... s O... ~.n..-..--, ..\\ 4 P. F.. d W I L E. I L c. I ) E b .I. O [ , F . ~..-- i 200s_2 J yj f [P 217 of ,a i 6

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E. --.J r ' ? ~ -i - f* ,.; ;. }.??_--Us . ~; ** { J b t ?- { 'sa h Articta Y - T3 es m 9 The prices provided for herein are exclusivo of any g p: 1 . pr.esent or future Federal, State, Municipal or other sales e ~. s. or use tax with respect to the material or equipment or L'.j ~, . g ; [, rr. services covered hereby, of any other present or fucurs t: l excias tax upon or measured by the gross receipts frc:2 Chis t. b transaction or any allocated portion thereof or by the gross R f. g l - value of the material or equipment covered nereby, and of. .a any present or future property tax or s1=1lar charge with G 7 p. -j respect to the catarial or equipment covered hereby. If r.. B&W is required by applicable law or regulation to pay or 'c ' A n I collect any such tax or taxes on account of this transaction p.. f Q,,,, or the caterial _or,, equipment or services covered hereby, such amount of tax. shall be paid by MetT.d in addition Do the prices f. r.; I l g.- i herein provided. P v 6 i 1 ( F F, t.. r 4 m. F 1 e V y.- 7 ~c 3-c,.,..,, g. _1 i d -w 20csl217 !! fTf2171 r 4 1 1

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l 1-any loss or da= age resulting from any delay in perfor. ance

[ l or from any TA11ure to perfar= its rsspective contractual ~1 y obligations, within the time specified herein, due to fires, U[ floods, strikes, labor disputes, labor shortages, inability y { m to. securs mat erials, riots, thefts, acciden.s, acts cr fail-- -.. -... s r. s. ure to act of government, or any other cause whatsoever, L. wh' ether sin 11ar os' dissimilar to t.%se mWM M% # 5 I J yond the reasonable control of the party concerned which =ay delay or prevent perfor=snce hereunder. Se ti 8 Of P*## 1 ',h a shall be extended for a period equal to the time lost -M - ~ ~ ~ ~ ~ ' ' ' ~ by reason of'.any'~sTic.h.' delay.-'Soth parties shall.maka eve.T.r n {. O affort to keep.d.e..la.ys.i.n perfor=ance'at a sini.u N,. i-V g f w G .f P e i F, i N l i ,e* s. s 1 O 9 b. t l-L p. -<.g-m.m.% ,.,.-.,,s..-w.-r..y.. ... -,, q, 3.j. g ~ ~ ' 4 t i p 2 - 7 2_[ 2coe 21 m i

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..... - - ~ - _- u. u_ n. P 1 v \\; .r-w. W. h A rtt e h YT - Co-r ee : m-*.a t "a-a m F i o.. a c-BW sha12. not be liable in any event for loss of antici-y g pated profits, loss by reason of plant shutdown, acn-operacion F,, ; y-or increased expenas of operation of other equipment, or e.=y j.,. special or consequential loss or damage of any nature arisir.g E..". out of the const.-'uction. or operation of the "'hree.911e Island F. '. 7._ - ~~ ~ Ndclear., Station... -~ 6_ - -- ** ^

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w. .t y. ....v.. ...; i..-. .c ...+. ...s .~.. y d L _- 1. M;:i s S.~. % '. u. _ '- - &.' ;.-LL- ~ '.. -~ ~. 2 f, .? i i. s p .m V h ~ Artie1a W - Assir--=nt tr d S.:beent-ett:-- k ~ d r A. Aestsm:= nt r. .5 + Any assignment by either BW or :{etEd of this Contract t .u 5 i or an7 rights thereunder, without the prior written ap- ' g ..5 ~ ~~' proval of the other, snall be void and not merely void- (( t. j. able. Ec .B. Subcont-setinir f-c. (1) BW shall advise MetId of the equi; ment or syste:s L s L. q proposed to be subcontracted and the as:ses and . p. g-locations of the, potential subcontractors ^.~~~~ 2 p (2) 3efore BW places any subcontract for the equipment. ~ ',f - m x O..~;- :~ --'-_ geferenc_ed, in para 6..a. ph. -(.1.)v.o.f this s ec tion, MatId.--.

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I. .-- s. s shall have. the.rish; to' designate an al ernate. - 2.- b vendoc 'or subcontrsctor, which must be acceptable [. to BW with respect to the technica1, delive.7 and f. contractual aspects of the centract, provided Meted h pays B W the amount, if any, by shich the cost of l the acquired' equipment exceeds the cost of the 6 i i? equipcent proposed to be selected by E!W. - p (3) BW shall assu=a as full responsibtLity to Meted ). for the acts or o=issions of its subcontractors i L-as for the acts or caissions of persons directly S employed by BW. O P. t y .q. b E. I P '2 g. g." g a 3"- "["* 1#P-gyg- .w.,. 2cos. 1 7 A f 2 p l2 i m . 7. A L '.V

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v Artfele X7 - Steelwork Unless othe.,,ise stated, any supporting steel to be fur- [,' h. h. I nished by S&W will be designed to support the equi;=ent to ? .s be furnished and will be designed in accordsace with the

b...

a C Rules of the An'arican Institute of Steel Construction effec-i '. (f.-- tive as of Nove::bar 15, 1966. Except as required under Ar.- t2dlw II 3(1), if S&W is required to increase the si a or._.....-, E< ~. I weight of its supporting structures to conform to other than.. g.c l g i these Rules or because of additional loadings i= posed by 5-f. l g MetId, the CCNTRAC':' shall be equitably adjusted for any ,.f additional costs and tire of perfor=ance ocessioned 3&~4 F E. .y n W.e - r .l thereby. . - -- s - -.. ~ y.

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i E. E r e A-tiele TT! - A*.bitMeton t. ( 'Any cont: rov.eirsy or clai= ( exce;:t any claim for da= ages y r' because of bodily injuries, tr.cluding death at an7 time re-t u ., ',, 'N'.o.., d.~. sulting therefron, sustained by any person or persons, and ~ a rr ] except any claim for da= ages because of injuries to or D. :. . p.==t&,. *;. e .m.,... n. des.t.setion of property) arising out of or relating to this 'f. 2,-c w r ,r 3 2 Contract.or.,the breach thereof, shall be settled by arbitra - - - p h-. p /. tion in accordance with the Arbitration.hles of the American l Arbitrution Association. 4 i t. o s. N ./. r. - ~.,.... _.. =... -.. . ~.... s - - ~.. - - x . r f;; ;.,_. -.. -... _ - ~. - . c L- .c d L. [ 7 L V ,t s t \\ p. I P l i O l 7 i s. kc b P C .~.. ~ ~... ~ 200sJ217 ?) P 2 ! ? ?f y~. r....-_ L L

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l p s. A:.tt ele *-"T "otificattor. of' Ch* Je y k* Meted shall notify 2_t t=ediately, by Registered Mail N.._ 6 L.. " ?, ad8.ressed to SW at 161 F.ast h2::d 32-est, ::ee Yoric, of all E Lv.

k..

j claims brought against HecId for which 3W =ay be liable, ~ ( and 3'4 shall nocify **atZd i=ediately, by Registared. Mail I c: j'?.a addressed to Meted at Readir.g, Pennsylvania, of all clai=s E. . ~.~ +. i. - .~ ~ ~ ~" ~ brought against BW for whic.'t MetId ca7 b e liable. F.. (P t l f ~-~- l c :... i g F.. =~s s. w:.. ~~-. e.:. s- ,L. -_...2-- w s-t. I. F. e,.. l F t. l c s t i r .i 'a s i I 4 P i o f t. P t J. p '.. - ~ ~

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^ - t* _ R- ?T . 's -~ s I L, i [ s e C h Arete'le P.m! - C?.eelist* en b r ' fated 3 m Meted may cautel the centrset only upon u.~itten notice.

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l [ . and upon paynent to 2&W of resscnable and proper cancella-L ".i., tion charges. Such charges shall include direct labor and ?' s-- t asterial expenses; vendor cancellation charges; requisition L *7

i engineering and d afting expe.se, based cn the percentage M.'

9: of completion of the engineering and drafting work; develop-- C,. '. - ~~ ment engineering specially ine'arred for the cancelled order ' %f.' l l including special tools, dies, fixtures and patterns,; and bl all other di ect and indirect costs properly allocable or F,,e.[.

apportionable to. the. order under pF3's standard accounting tr f

t. n. , ractice, and profit on the woric perfor: sed. Meted shali bar p g C ~~l entitled to all naterial. specially ac.cu=ulated for the order ~ ,.7 ' o s - - -- ~,w. and included,in t.h.e above. charges; shipped at expense, or, 7,~ 7 n. at its option, the salvage value thereof shall be deducted ,i r from the cancellatica chages. MetL1 may, at its option f and expense, have a fi: s or Lupendent acccuntacts conduc i i an independent arm-rination anc certify that the charges are o' l in accordance with standard E W practice. Such firm shall f be the, independent accountants of 21W at the cine unless Metr.1 shall in good faith and for reasonable cause object to such accountants, in which case such ind6 pendent accountants shall I ' t m be a firn =utually acceptable to B&W and NetEd. L r c l f h i i e ,T :*. E F' m,. 3.,,... _-- 7 7 m.... [ p l2 I 7 h

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~=. n _ _ ~ _ e.c.. c._ F. w. r. C .c h f. Artiete TrT - ce-tmet ' ha-ree and htm Wow t y The ter=s of this Contract shall not be changed, super-i seded or supple =enced except by written contract change l: 1 order duly executed by an cfficer of Meted and by an officer 7 . P.. or any designated represen actres of 3&M.

o claim for extra i

l ~ i equ.ipment, s7stac2s or services shall be valle u=less author-- f.. y ] ized by a written contract change order duly executed by an [C P '. l g officer of Meted and by an c..athorized officer or any designated [. e-. I. representatives of E!W. ~' e, s. g s.. 9 y. f, ~. \\ c. M 4 e i + Ff. t G' ' L r. T f r. a 6 g t. l b p g O i' .,2 c !~ F-1 f - - 4s' -~"r. ..c.. .-,.s .C = i 1 _P 2 i's 91 [ 20cn 2 1 g gt l

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v. .' ' ~. .L..z. .:..s: _ _ =.. s:.. s = f.'.: ___!.~.,- _,, n . sm_ I 4 V.. 1 -g 4 g. e I t-o e t-r A, i. Article II - Mninistr2 tion of Centrut g MetId shall designate, in writ *q,a.Three Mile Island b-cc j. project 2*"2ger, and FIS shall desig.ste, in writing, a i I-I project manager to ad *nister this centract. Any desig:.ations g., - 7.-, e i so made may be changed by written notice and ind'ividuals csy be L j-- .. g. p L; : designated to act in the absence of either of the designees. i ~~~ a Subject to the provisiens of Article XII, the individuaIs so' - r* n /I-i ' designated shall have responsibility and authority on behalf of I their respective princ1;als, to administer operations under this y* g

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= [' Contract, to formalize and agree u;ca centract procedure, to handle b,,, r disputas, to receive notices, and to do all things necessary to I f 7.. E Q, carry out the contract work. ___,... _ T_ p. -"s~--i.--.,,.....,f.,.,. g - ~... - . = =. - -... - F ' r. + - g, ?- i t-f e I t. r 4* t, b 4 L w t 1 i 1' ?. - O N. Ia r a r T. IP 2ieU - - I - 2coe 2 J. g A .4 F_. t

o.. t N u - }. gt.... . J. r g g -.......'d ..~... I r, e ......s.. r' a' r. m2- .s . = 1 t 2. V. c. E .p i ir. t -r Aitiele XXI - Gov -..1:; f.aw E I j This Contract shall be deemed to be a Par.ns71vania con- ,P""b. , c,. tract and shall be construed in accorcacco with, a:d governed L~. ~. I by, the statutes and cce=ca law of the Cc:=ccsealth of h.' k.f. Pennsylvania. ~,. e f l R. .w c-jQ

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e... v. -~ . ~.. '...c.' -:.~ n... . -~ ~ c D_.. i ~. / {.. n ',.,,.i. ' * <'.4. g.. p-Q. .-...<x'._. '=. Q. :. _ a L., _. .e. _.... -. L n-. . c-. L- .. l y, .I e. I-E h b a h i A--* ele _C '*eive-s [ j a. The failure of KacEd to -nforce a: an7 ti=c a.q of the L.3 provistocs of this Contract, or to re3-01re at ar.y ti=e per-for=ance by 3L* of ag of the provisions h.ersof,. sr.211 in 1- ,...-m. I no war be const:-1.ed. to be a waivar of such provisien, nor in b:* e t an.y way to affect 'the valid.ity of this Contesc: or any part f e. I A f-thereof, or the right of Xat?.d to -.hereafter enforce each s L. and every such provision. 5- ~ G. r. r e r.... g. .. - - ~. -... r... .,. 4 3 ta .w u p- .;.l. 4..h,,**.,,,,,, ( r .r.,. g. f y t. .7 h* G-* I p e. e-h. r O p E L V w n. C t I i I O I l i O ( B. r f. l ) l [ l I .q b s v. ,'1 r l F" .1 i -.,3 7.- -.,..,.-r. . r.: 3;, -'n- =j*er 4 ea u E a r 21 20 cs. e,8 3. 'r i . Pl2_ I a at . x...

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