ML20024C429

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Contract for Nuclear Equipment & Svcs for Oyster Creek Nuclear Power Plant,Unit 2 Between Jcp&L & B&W.
ML20024C429
Person / Time
Site: Oyster Creek, Three Mile Island
Issue date: 05/12/1981
From:
BABCOCK & WILCOX CO.
To:
References
TASK-*, TASK-GB GPU-0206, GPU-206, NUDOCS 8307120618
Download: ML20024C429 (72)


Text

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r CCNT*ACT

                                                       ?OR NUCLEAR EC.UIMP" AND .22..v r. S fer the Oyster Creek Nuclear Power Plan:

Unit No.2 between

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Jersey Central Power a Light Cc=pany and 2.e Sabcock & Wilecx Cc=;any MO BearExh. For in & 06

                                                                                            - -... .' .* .Psv ett   f" Charles Shapiro CSR Sj IQ2[

Doyle Re;;orting Inc. Q.

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CONTENTS

     .A
     .                  Article Page I

SCOPE OF SUPPLT .................................. 1 A. Equip =ent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . 1 3. Services ................................... 1 (1) Equip =ent and Systens Supplied by

  • 3kW ................................. 2 (2) Licensing Assistance ................ 3 (3) Public Relations .................... k (4) Training ............................ k (5) Cperation and Maintenance ........... k (6) Easign, Installa:icn and Construc-tion ................................ 5
    ' , ,                                                          (7)          Preoperational Testing, Lcw ?cwer Testi=g and Systa= Perfer=ance                                                                            ,

Testing ............................. o (8) Pro gres s Repo rts . . . . . . . . . . . . . . . . . . . . 6 C. Fue l S upp ly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 D. Spare Parts .................................. 7 II CHANGIS r.i PLANT DES IC-N . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A. Changes Within 3&W's Scope of Supply Other Than Changes Eue to AIC Licensing Requirements ............................... 3 l (1) Changes by Jersey Central . . . . . . . . . . . 3 (2) Changes by 3&W ...................... 9

3. Changes *41 thin 36W's Scope of Supply Due te AEC Licens ing Require =ents . . . . . . . . . . . . . . . . . 9 C. Changes in :he ?lant Equipmen: cr S rue:tres No: Within 3&W's Secpe of Supply Zue :c AIC Licensing Require =ents ................. 10 unu mp
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e f A .- .a. n ., ,. O Page D. Li=itation on Fi of E&W . . . . . . . . .nancial Respcasibility

                                                                             ............................                          ic I.

Control Red Drives ......................... 1.- S .* *. e .cu i '. a b .' .' .' '.y

                                                                              ...........................                         ta
                                                                                                                                  .c III SCHICULIS , DILT/IRY, TITLI. AND RISK OF LCSS                                        .....

13 A. Schedules a.d Delivery ..................... 13 3. Title and Risk of Less ..................... -o I7 CONTRACT PRICI AND TIS.MS OF PAY.\ENT . . . . . . . .17. . . . . . A. Centract Price ............................. 17

3. Ter=s of Pa/*=en: .....
                                                                                    ......................                     17
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     ,-                                      (1) Xaterials Price . djts:=en: ..........

13 (2) Shop Labor Price Adjust =en: .........

     '-                                                                                                                      20 (3)    General Provisicas ..................                                    21 V                PLANT WARRA.T"-?'
                                                               .................................                             22 A.

Syste= Perfor=ance ......................... 22 (1) ~4arranted Cu:put ....................

                                                             <                                                              Eh (2)    De=cnstra:icn of Warranted Oc:put                                 ... Oc

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(n) Re=edy .............................. 23 3. Design, icrknanship and Materials .......... 29 (1) 'darranty ............................ 2C (2) Ccnditicas .......................... 29 (3) Re=edy .............................. 31 l

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A. In s c ec t io n o f '4o rk . . . . . . . . . . . . . . . . . . . . . . . . .

                                                                                                                                                                      .. u
3. Pre op e ra t io nal Te s tir.g . . . . . . . . . . . . . . . . . . . . . 35 C. Acceptance .................................

36 D. ReletSe by Acceptance ...................... e 3C

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_?.%C.. Ti/S.*4_ .""Y. A.%C 15IO'4."L.$.M'CT - j "(' A. Jersey Central ............................. 37

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3. Other Govern = ental Agencies ................ E6 X TA*CS
                                                   ............................................                                                                    E7 ZI                  DEI.AYS AIC DAMAGES . . . . . . . . . . . . . . . . . . . . . . . .                                                    ...... .

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                                .      3.        Subcontracting .....................                                                                  ....... 3G XD                   FOUNDATICNS                     . .
                                                                       ....................................                                                       52 v.'7
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Artic !.e A. , Pr.4 e rF.,. AR3ITRATIOt ...................................... 52 XVII NOTIFICATIO N OF CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 XVIII CANCII.LATION SY JZESIY CINTRAL . . . . . . . . . . . . . . . . . . . 56 IIX CC:lT2ACT CEAITG S AND ICRA '3ORK . . . . . . . . . . . . . . . . . 57

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ADMETISTRATION OF CONTRACT ....................... 56

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C-0VIRMING LXi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

             *C C I PROPRICARY I:TFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . .              60
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/ :CCI7 k DITIGRATION ...................................... 62 O e. e. 1

CONTRACT m -

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This Contract, entered into between Jersey Cen:ral Pcwer & Light Company, a New Jersey corporation, (hereinafter referred to as " Jersey Central"), and 'O.e 3abecck & '411ccx Cen;any, a New Jersey corpora tion, (hereinafter referred Oc as "3Ei"), is effec:ive as of January 31, 1967 ARTICLE I - SCOPE OF SU??LY A. Icuitment (1) 3Ei shall supply :o Jersey Central a chemical shi= pressuri:ed water reac:cr nnelear s:eas supply systen having a base capacity of 2ht6 lG and cer:ain x auxiliary equipment and syste=s (hereidafter col-lectively referred to as the "NSSS"). (2) D.e NSSS to be previded by 3Ei is described in :he Technical Description se forth 1:. Appendices A and C :. this Contrac (hereinaf ter referred Oc as the

                                                     " Technical Description") . In case of ecnflict be: wee-Acpendices A and C, A;;endix C shall prevail.
3. Se _~ric e s 3&M shall furnish the following technical services, en a ti=ely basis, censisten: with the project schedule devele;ed in acccrdance with Section A cf Article III, in sup;cr: cf design, construe:1cn, licensing, and D'

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cperation of Jersey Central's Oyster Creek Nuclear Power Plant, Unit No. 2 (hereinafter referred to as the " Plan "). All infor=ation and docu=ents furnished by EEi shall be complete and adequate to meet Plant design and test require-cents and applicable ecdes and regulations. (1) 3:ui =ent and Systems Supplied by 3Ei (a) 3Ei shall cocperate with Jersey Central and Surns'

                                           & Ree Incorporated, its architect-engineering and constraction manage =ent contractor, in their perfo.~ance of the design, constra tion and i . spec-tien of the Plant.                                                                                              ~

(b) 3Ei shall furnish to Jersey Central, for use in [ connection with the design, erection and Operation s of the Plant, as many copies, and in such detail, as Jersey Central =ay reasonably require of pre-duction and fabrication schedules, ;reli=inar7 and final drawings, plans and specifica:icns, diagrams and other engineering da:a for all the equi; tent and sysce=s to be supplied by it hers-under. Within a reasccable ti=e af ter receipt, Jersey Central shall check, approve or cisapprove and return cne set of such schedules, drawings and da ta to 3Ei. Such actica by Jersey Cen:ral shall not relieve 3Ei cf any cf its cbligationc under this Contract. V 2 1 l l l

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s. documents to Jersey Central as they are issued by
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I (c) T..irty-two copies on a timely basis of such other infor-

                              =ation as Jersey Central may reasonably request for incorporation into the Plant data book and Plant start-up, operating and =aintenance =anuals.

(6) Desi n, Installation and Construction (a) 324 shall furnish the services of enperienced, ec=peten individuals to provide on-site technical advice and consultation, including erection procedures and quality standards, with respect to the installation and erection of the NSSS furnished under this Con:ract. Such techni-cal advice and consultation shall accurately reflec:

                              $he best judg=ent of 3Ei. Jersey Central shall provide suitable office f,acilities for such individuals, who shall however, rs=ain e=ployees of 3Ei, which shall be responsible for their salaries, travel and livi.s expenses.
             -(b) No warranty with respect to eree:ict. work =anship per-fc =ed by, or on behalf of, Jersey Central shall be i= plied frc= the censultation services fu = ished by 3&4 under Subsecticn 3(c) (a ) of :his Article I. Any defective erection werk=anship, whe:her discovered in the course of erection or subsequen: therto is to be        .

recedied withcut expense to 3F.i. 3

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x ., .a. w as ... ev_i d=.d _4 .. 's.".=. *= .. c.k ' .a a .* .". =. s m~ .~ ' ,. w_ ' ..- . , Jersey Central shall .*trnish all erecticn l' abor, i

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(~) Prec;e stienal Testi = . I.cw ?cwer Testi= and Systen Perfc.~._ance Testi= (a) 3Ei shall fur.ish to Jersey Central such technical assistance for equi;nent and systens preoperational testing, icw pcwer testing and NSSS perfor._ anes testi .s c e...e ... _ ..s sec,._ c _. s..o, ,._, s e s .

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reasonably require. O.e technical assistance required nay include routine testing = qui;=ent, qualified per. s._ sonnel, detailed written testing procedures, review and approval cf testir.g precedures prepared b7 others and detailed written analyses and interpretatiens of test results . (b) F.epresentat'ves of 3Ei will be authorized Only to advise and censulo with Jersey Central and will net be a, .w . a. .._. o.c w.,...._.e eq _. .. . ,

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for=ance guarantees shall be perfor=ed by Jersey Cencral. (5) Prceress F.e:cres 3a. y r_ , _ , .-< a_a_e ..... ..u._ . . s ,-- s.-.gg .- ...e . . g .;a ... . . ,:_. b

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days after the end of each nonth. The reports shall

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  • s emphasize probles areas such as engineering, procure-ment, fabrication work which is behind the schedules developed pursuant to Subsection A (1) of. Article III and other critical or potentially critical areas requiring special attention.

C. Fuel Supolv All reactor internals other than fuel asse:blies are provided under this Contract as part of the NSSS. The supply of fuel assemblies for the plant is the subject of a separate centract between Jersey Central and EEW.

 ,                D. Scare Parcs Spare parts =ay be the subject of a separate agree =ent
   \ --

between Jersey Central and 3&W and are not included in the scope of this Contract except as listed in the Tech-nical Descriptica. 3&W shall provide Jersey Cen:rsi with unit prices of recc== ended spare parcs for equi;=en: furnished by EE4, including special : cis and 1:ers re-quiring periodic replace =ent, at the ti=e fabrication cf the original equi;=ent is started or at such earlier tire as Jersey Central =ay reques in Order Oc reascnably plan for precure=en and stcrage of spare par:s. l

   'v-                                        7

m A.:.*ICTI II - C'J_UiGIS I'T FT ANT DESIGN - A. Changes 'fithin 31*.f's Sec;e cf Su cly C:her Tnan Chances Due to AZC Licensinz Recuirenents (1) Chanres by Jerse'r Central - As ."._J,i' s wc-k. . ..-.

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Jersey Central the drawings, diagra=s and other data described in Subsection 3(1)(b) of A :icle I. Jersey Central shall review the drawings,- diagra=s and data as expediticusly as practicable, givini; dt. ... c c s. _a. . . .. .,..

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precurenent and fabrica ict schedules. f Jersey f- Central desires Oc have 3?'id =ake any change in the

  %                      desi.n, equi;=ent and systa=s reflected in the drawings, diagra=s and other data, it shall furnish
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and the perfor=ance schedules shall be equitabiy

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ad,iust=ent shall be evidenced by agreenent executed as previded in Article 'CX. %/ c

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  ,                (2)      Changes by'3Ei                                         l 3E4 =ay make changes frem the Technical Descriptien without additional cost to Jersey Central, if nec-essary to meet its guaranteed performance or warranty obligations as contained in this Centract. All other changes by 3Ei shall be subject to review by Jersey Central which may disa;; rove any proposed change which would have adverse effec:s en Plant c;erability or availability or upon c;erating and maintenance costs or upcn balance of Plant costs or upon the Plant ec ;1stien schedule.
3. Chances Within 3Ei's Sec;e of Su;tir t

Due to AZC Licensinc Recuire=ents (1) L*, prior to Acce; ace as defined in Article VI,

                        =odifications in the equi;=ent furnished by 3Ei/

are required as a result of require =ents of the U.S. Atcmic Energy Cc==issics (AIC) to secure and naintain an AIC construction pe. it and an AIC operating license, er either, 3Ei shall =ake such =cd'. fica:icns and the Ccatract Price shall be equitabl7 a"! justed to reflect changes in the cost occasioned thereby to 3E4; provided, however, that 3Ei will be finan-edally res;cnsible for additions and ncdificatiens necessary to meet AIC licensing require =ents only ' tc the exten that si=ilar additions er =cdificatiens v c<

are also =ade for the EEi acccunt at Metropolitan i 3dison Co=pany's 'D.ree Mile Island Nuclear Station.

     ,                                      (2)         As used in this Section 3, the term "=cdifications" includes providing additional items which are with-in 3Ei's scope of supply or are of the kind within such scope of supply, as well as ite=s which are in neither 3Ei's nor Jersey Central's scope of supply but whose functions ars = ore s1=ilar to the functions of equip =ent within EEi's scope of supply than the functions of the equip =ent in Jersey C'entral's scope of supply.

C. Chanres in the Plant Ecui;=ent er Stractures r~ Net Within 3Ei's Sce;e of Su; ply Due to AZO N. Licensia.g Recuire=ents 3Ei will have no responsibility fer the licensability of Plant equi;sent, systems, and structures cutside 3Ei's scope of supply or for any design criteria sup-plied by 3Ei for such equip =ent, systa=s an; stractures,

  • i but will supply its best technical "udg=ent and advice
                                                                                           ~

with respect to such design criteria. Mcdifications in such equi, ent, systems and structures which are nec-essary to =est A3C licensing require =ents will be the t financial responsibility of Jersey Central. i D. Li=itation en Financial Res;cnsibility of 3Ei Tne total liability of 3Ei for the cost cf changes 10 1

        ,%             under Section 3 and Section E of this Article II shall i

not exceed an a=cune equal to the Centrace Price for the NSSS. 'Ihe 'i1=e' of perfor=ance shall be appropriacely

                ~

adjusted to reflect delays occasioned by char.ges required under Section 3 of this Article II. E. Control Red Drives 3!W shall furnish at ne change'in Centract Price er delivery schedule, a roller nut control red drive nechants: of the same type as supplied by 32R for Metrepc11 tan Edison's Three Mile Island Nuclear Unit No. 1 in lieu cf the type of drive described in Appendix A. 3147 will perfc. at its expense all analytical anc testing work necessa:7 to

      /

supp. ort the Jersey Central license application incorpc-N rating the roller nut control red drive =echanism. A Technical Description of the roller nut cencrcl red drive

                     =echanism is centained in Appendix C.       Any subsequenc changes in the Technical Descriptien of the reller nut control red drive mechanism will be.50Vernei b7 the entiret7 of this, Article II.

o

     /

k 1 _ _1

I A

     .%       ?. -Si's Suitabilitr            -
                                                                                                             \

Without in any wa7 limiting 3?id's technical and fi.an-

                                                -                                                            l 1

cial responsibility under this Article II, nothing in this l Contract er elsewhere shall be dee=ed to be or to result in a guarantee by 336 of the licensability of :P.e .lan: c -' '.~" =. su.'.'.a b _* _' * *y c .* '..". .= .2 ' a..'. s * *. .= . 1 l l s u

        .^. ARTICLE III - SCFILIFTM. D I.IVE-C. TI"'I.I. AND ?.ISK OF T 0SS t

A. Schedules and Delive:r 1 1 (1) PR shall perfom engineering and design werk and shall ship equi;=ent to the Plant site in' accord-ance with schedules to be developed by 3W and Jersey Central to caet an orderl7' sequence of en-gineer*ng, design, fabrication and erection.' Such schedules shall be developed in sufficient detail, and shall be revised as necessa_7 frc= 04-= to time, to enable Jersey Central to plan and centrci installatien of the equi;=ent provided hereunder as well as ccnstmetien of che balance of Plant

    ,-                      by C7M scheduling techniques.       Such schedules shall to the greatest extent possible be consistent with maintaining the project schedule developed by Jersey Central to pe.~it fuel lesding by December 1,1972 (or such other dates as nay be
                            =ntually agreed) and censistan: ti:h -he fellowi.g shi;=ent daces for cafor items of ec':i;:ent:

Ita= race Of Shi:: enc Pressuri er Janua./ 1, 1971 Steas Generator #1 '

                                                                .eb   =ary 1, 1971 F.eactor 7essel                March 15, 1971 Steas Generator #2             A;r:. 15, 1971 t

i 1 1 *0 L

             ,.--           (2)   3&W shall deliver the reactor vessel f.o.b. to a barge unicading poin: a t Philadelphia, Pennsylvania. 35W will deliver the steam generators and all c:her equip-sent in EEW supply f.o.b. cars Reading, Pennsylvania .

3&W will provide a quotation to Jersey Central for: (a) the delivery of the reactor vescal f.c.b. barge to a suitable barge unloading facility, provided by Jersey Central, on navigable waterway a: :he

                                          ?lant site; (b)       the delivery of the steas generaters f.o.b. "carge to such barge unicading facility, if by water; cr f.o.b. cars to railhead neares: Plan: si:e, if by rail; i

(c) the delivery of all otner equipment in 3&W supply f.o.b. cars to railhead nearest Plant site, if by rail; or to plant site, if by : ruck. All unloading will be perfor=ed by Jersey Central a: its expense. (3) All equip =ent shall be delivered in a clean condition and prepared for ner=al protection agains: weather, rust, and =echanical da age during shi;=en: by pain:ing, i crating, or other appropriate and cusoc=ary protective

                                =easures. 3&4 shall, en a ti=ely basis, p.7 vide reccc=endations for the =anner of s Orage of the scuip-I 1                                cen: af ter unicading at the Plan: site and for wea: hor
              ,                 protective =easures necessary during unloading and g                     st0 rage.

I i

 --r -- -             e y-  ,    -     --
        .m
3. Title and Risk of Less (1) 'dith respect to equi;=ent manufactured by EEi spec-ifically for delivery under this Contract, security titic shall pass to Jersey Central to the extent of any progress pay =ents =ade to 3Ed. With respect to these ite=s of equi, ent =anufactured by 3Ei suppliers specifically"for delivery under this Contract, 3&4 shall endeavor to negotiate te. s and conditions of purchase which will transfer security title to 3F4 to the extent of any progress pa7:e.its =ade to such supplier in advance of de-livery. Concurrently with 3Ei's acquisition cf security title to such ite=s, the same title shall pass to Jersey Central.
  \.

(2) Full legal andegitable title to the equi;=ent supplied by 3Ei and risk of loss thereof shall pass to Jersey Central upcn arrival of such equi;-

                                                =ent in an unda= aged condition en board carrier at the centrac nally desig .ated destinaticns . 3Ei shall be res;ctsible for any less er damage occa-siened prior to such arrival.

(3) W.en the equi;=ent is ready for shi;=ent and if shi , ent is delayed or post;cced be7end the agreed scheduled shi;=ent dates by any cause beycnd the

      ,.                                       centrol of 323, Jersey Central, or 3Ei at Jerse7 Central's request, shall ar-ange for stcrage of 13

-y , . - - - , - , , - . - --

5 . - t

               ~'

the equipnen; and shall protect it against danage frc: the weather er c her causes. Jersey Cen:ral shall assure, and 'shall held 3&W har:less agains , the risk of Icss or da= age arising out of such storage.. Jersey Central shall 'ce responsible for an7 charges for such s:crage and recenditioning, 1" necessary, of the equipment. 3&W shall use its best effer s to cin* 're such charges. O e m

           \

I l

           %/

14

                                                 .    ==-

t

a.. . . - . . . . . . . . . r ARTICLE I7 - CONTRACT PRICE AND TERMS OF PAI ETT A. Contract Price Jersey Central shall pa; to 3F4 for its perto. ance under this Centract the total sus of Twenty-One Million Dollars . . . $21,000,000 (herei= referred to as the Contract Price). Except as c:he.- vise enpressly provided under this Contract, such pay =ent shall constitu:e full ec=pensation to 3&4 for all of the werk to be perfor=ed and for all of the obligations assu=ed by 3EJ under this Contract.

3. Te =s of Pav=en
   ,                (1)    Pregress pa7=ents egnal to ninety-five (95) per i

N. cent of the Contract Price, as adjusted pursuant to Sectics C of this Article I7, shall be payable in forty-five (45) consecutive =on:hly pa7=en:s s:ar:- ing and ending as follcws: (a) Consecutive =enthly pa7=ents of 1.1 per cent of the Centract Price, as adjusted, shall be payable fer :he first ten (10) =cnth peried ccm=enci.s March 1, 19c8. (b) Consecutive =cnthly pay =ents of 2.4 per cent of the Contract Price, as adjusted, shall be ;a7able for the subsequen hirty-five (35) w ,,

                                                 -u
     .n                               =enth period.

(c) Payments ,under Subsecticns 3(1)(a) and (b) above may be deferred and the t'.=e periods referred to therein extended pursuant'to Subsection 3(4) below. (2) 'D:e remaini .s five (5) per cen of the Centrac Price, as adjusted, shall be payable en satisfactory completion of thc prec;erational and acceptance tests specified in Article VI. I* the preoperational rests have been successfully ce=;1sted and through no fault of 3E4 the satisfactory ec=pletten cf the acceptance test is delayed, then the final five (5) per cent pay-

    .-                      ment shall be due ninety (90) days frem the date that v,                      the NESS is read 7 for the acceptance test and 3.LW so notifies Jersey Central, unless otherwise sutually agreed by Jersey Central and 3E4.

(3) All: pay =ents shall be due and payable en .'.e first day of the month or ten (10) business days subse-quent to the date that invcices are sub=itted by 3!5 to Jersey Central, whichever is later. (4) If 3E4's perfor=ance of the werk heren. der is sig-nificantly delayed, there shall be an ad.'ustsent c' the scnthly payment schedule which will s.;uitably reflect the effect of such delay with a view to co-ordi. acing progress pa7:ents as nearly as practicable s 13

i

      .q                           with the ;rciiiress of E!!i's work hereunder.

C. Price Ad.fustments The Contract Price is subject to adjustmen: upward er downward for changes in =aterial and labor costs. Each pay =ent on the Contract Price shall be adjusted when due in accordance with the "clicwi .g provis' ens : (1) Materials Price Ad'ustment (a) Fcr purposes o' this adjustment only, h5 percen: of the Contract Price and cf each pay =ent to be

sde en account thereof, shall be censidered t:
                                                             ..    .p .. s e . .
                                                                        ..      ..      .w..      o .a    . e .s_ _a _,                c. 2...          . . . .

(b) 2.e Materials Index shall be the i.dex of whoissale s, prices for " Iron and Steel" under Metals and Metal Products as pub'11shed =enthly by the 3 reau o' ?.ab-or Statistics of the II.S. Departmen: of ?. abor in the Monthly labor Review with the base Materials s ...

                                                                        . , C e ...e   _                                                   , , , , w
                                                            ..                               ..s.
                                                                                                ..    . a.l.   ... . . .                   . . . . . . . . m. C .. .i.         .   , w.
                                                                                                                                                                                     , ,       .v.....-
                                                                                                                                                                                                      <. c..

sc$C, . .w. . 4 ---ee 4a.e.3.4 .u..C

                                                            -                     .                                              ... s .-                   ..g    - .c...i.,
                                                                                                                                                                            .         a s.   .            .w.. .

4 -. s.. .a..s. w _1s s.w.. . . a. .e . A. .e .' - =.a. . . .k. . (, m. . s..

                                                                               . . . .        .a e a 4 a 7 s
                                                                                           .?,r                                           a ..,. s.w. ?.- _-

w

                                                                                                                                                                                               .f3.. _e_s _ .a
                                                                                                                                                                                               .u...
                                                           .v a.x  . . . .
                                                                             .e        . .g..       , r.*. .'.. ' . wl._' a. .". =. a a. .' .                                 a-=, , .-- . .    . .. e          'e l

made, in accordance with the :e..s of paymen: pro-visions herein, is due. (2i w/ e. .. . a. ...s a.a

                                                                                                                      .           .g .s   .             .. .. ,,.s_.          .. , ... ..

_c. ....-

                                                                                                                                                                                                                . .s.
                                                                                                    *O  -
        .- - - --        .    - . , ,, . . _ . , - , - - , - - . , .                                           . . , - - . . - . , . , . , , ,-                        ..n.             ..-n       -- - - - - -      ,, . . - - - .
       ,                                   content of each payment shall be deter:nised by
             ,                             multiplying such material content by the ratio of the current Materials Index to the base Materials Index and the difference in this amount and the material content represents the net material price adjustment.

(2) Shop Laher Price Adiust=ent (a) For the purpose of this adjustment only, 45 per-cent of the Contract Price and of each payment to be made on account thereof, shall "e h considered to represenn the shcp labor content. (b) The Laher Index shall he the Average Ecurly Earn-ings rate for "Pri=ary Metal Industries" as published monthly by the Bureau of Laher Statistics of the U.S. Depart =ent of Laher in the Monthly Labor Review with the base Labor Index being the average for the month of November,1966, the i= mediately preceding month, and the i= mediately succeeding mcnth. The Average Hourly Earnings rate is identified as the one appearing in the tahle under

                                          ' Earnings and Ecurs' and entitled, in Nove=her 1966,
                                          ' Gross hours and earnings of productics wc kers by industry'.

(c) The current Laher Index shall be the Laher Index fer the scnth in which each payment to be made, in accc dance with the ter=s of payment picvisions herein, is due.

                                                                                                        - _ _ - _ _ - _ _ _ - _ , .           ,. _ __ ___ , . - .   -    . _ . . --- _ _.-_ _ _ __. - .-, . .                    --.  . _ ~ .
  -            (d)   2.e adjust =ent for changes in the ccst of tne labor content of each pay =ent shall be dete. ined b7 nultiplyirq such labor centent by the ratio of the current Labor Index to the base Labor Index and the difference i= this a=ount and the 14bor content represents the net labor price adjust =ent.

(3) General Provisions (a) 'Ihm price adjustment applicable to the final pay-ment on the Centract Price shall be billed at the same ti=e as the *m ediately preceding ;a7:en: usi.g the sa e current indexes as these applied to the adjust =ent of such *~ ediately precedi g payment. (b) In ec=puting the increase or decrease for =aterials and shop labor as provided above, the increase er decrease shall be calculated to the neares dollar. (c) Fa7:ents of all price adjust =ents fer na:eria'.s l and shop labor shall be due and payable upon recei.c: l of invcices er credits as the case =a7 be. Fcr billing purposes, each pa =ent shall include a tentative price adjustment deter =ined in accordahce with t'he above adjust =en: provis '.cn.7 but based on 3&48 s est'-$ e cf the current Material: Index and the curren: Tabor Inden a t the :*-* such 21

           .        pa7 men:, coinciding with the Te=ns of Pa7:en:'

herein, is due. Further adjusn=ents, which =17 ) be required, shall be nade en subsequen: billing at the ti=e the Indexes are published. (d) The indenes specified for any given =cnth s' hall be the one first published for that =cn:h. If for any reason the indenes are net ec= piled er publi3hed for any period, the indez cr indexes for that period shall be assu=ed to be the sa:e as that last cespiled er publis.y.ed pric :o such c=1ssics. Shculd such c=issic cen:ince tc the ;cint of practical aband ::en cf the cen;i-lation or publicatien in.the c;inien of either 3Ed

   /. .      .

s or Jersey Central, then upon notification by either party to the other of such c;inien 3ud and Jersey Cah. tral shall negotiate the selectica of suitable substitute inden er indsnes. (e) In the event that Contract Price revisicts are nesctiated for changes in this Centract, such revisicts shall be priced as of Neve=ber 1966, and shall be added c, er subtracted frc: the Centract Price to obtain a revised Centrac: Price which shall be considered as having been in effec beginning McVe=ber 1966 for the pur;cse of the

                     =aterials and she; labor price adjustmen:
    ,                clanses.

s_ PA

(f) The total ascunt of price adjust =ent pursuant to

    .                         this Section C will not exceed tuen:7 (20) per cent of the Centract price, revised to reflect authori:ed Contract price revisions. In the event that the scheduled ti=e of perfor=ance of the work under this Contract shall be extended for
                    .          any reasen entitling E&W to an ex:ensi:n Of :ine in accordance with Article XI, then the abcVe per cent of Contrac: ? rice shall be increased 0 5 per cent for each =enth of delay.
       .                (g)   To the extent tha a change in the schedule of i                              progress ;ay ents results frc= delays in the per-for=ance of the centract ucrk which are within the control of 3&W or its suppliers, the par:tes shall s                         at     the time of NSSS acceptance cc=pute the a:cun:,

if any, by which total adjust =ents in progress pay =ents pursuant to this See:icn,C exceed the total adjustments which wculd have been requir'ed in the absence of such change in :he schedule Of

                ,           progress pay =ents.        Jersey Central shall be en:1: led to deduct such excess adjust =en        fr = its final payment under this centrac        and shall be enti: led to a further refund La centract price to the ex en:

that the a= cunt due on such final psy=en is insufficient to cover such excess adjus::en:. L 23

AP.CCLI V - PI. ANT WA?.?.A.s m

 /'       A. S7 stem Ferfer snes (1)   Warranted Cut;ut 3a warrants that, when the NESS is leaded with ths initial 315-furnished core and placed in c;eratien, it will deliver a total of 10,521,000 pcunds per hour stem: flew at the stea= gen-erator stea= cutlet noccles at conditions of 925 psia and 5c9 F. when supplied with feed-water a                   conditions of h55 F. and 1020 psia at stea= genera cr feedwater distribution headers and when c;erated at steady s ate conditions with pri=ary systa= letdcwn a                        cr below 55 galices per =1:::e and =ake-up a: 125 F. with prima:/ syste= cc=;cnent insula:1cn surface ta=;erature at er below 1ho F.

(21 Demonstra:1cn of Warrsnied Cut;ue (a)

  • e perfe:=ance test and perfc. ance cal-culations, unless waived by Jersey Cen:ral, shall be =ade in accordance with the editien of the tes: ccde for Stationa.7 Stea: Generating Units and S ea Orbines of the A=srican Sccie:7 cf Mechani:a1
 ~

Ingineers, effective en McVe=ber 25, 1:c6 V where a;;11:able. "he seasure of the per-Et

l 2 i for=ance shall be the results of such

  . ^-                tes t . Perfo.~ance calculations shall be based en the steam tables in the latest
                                                                \

l editi n of Ther=cdynamic Properites of Steam by J. E. Keenan and F. G. Keyes. Other tests not waived by Jersey Central shall-be conducted in accordance with applicable standards of the A=ari:an Standards Association, A=erican Society of Mechanical Engineers, Anerican Insti-tute of Electrical Engineers, a.d the Heat Exchange Institute. P (b) 2.s perfc=ance testa for the warranted output shall be conducted within 90 days, s or such later data as may be =utually agreed u;en, after the equi;:ent is ready for testing and 3Ei has so notified Jersey Central. Jersey Central shall furnish qualified test and c;erating personnel for such tests and shall bear all enpenses of testing ex:ep: for the salaries and expenses of the technical perscnnel fur-nished by 3Ei to supervise the tests. By =utual agree =en with Jersey Central, with respect to the rte.=ber, extent and allocatien of enpenses, 3Ei na7 arrange

  % W q

esF

          ^

for preliminar7 tes s be*cre the equip-nent is subjected to f*nal testing. (c) 35's representative shall have access to all applicable test records, and a ccmplete copy cf the test da:a and results shall be furn'shed to 3 E. i (d) Test conditions, test conduct , i;.nd equi;- te:: c;araticn not g::verned by the ecdss , and standards speci" Lad in iubuection A

                                                    ~ (3)(a) cf this Article V*shall be as =t-
                                                             --..,~..,....a
                                                             %                .               . . - -       c,.,, _:: u..: a
                                                                                                                         .                     ..       . . , s . .,. v...._
                                                                                                                                                          ..       .,        , . ~. -, _-

prior to Plant start-up. (e) General perfer=ance data for the equip-i se .., a . s.. .w .,c .u. .. , Ay,,e ..a_x a. ,,

                                                                                                                                                                                       ..u._ s Centract.                              It must be reccgni:ed tha-i the perfc.~ance of the equip =ent cannot be exactly predicted fer every possible cye a ~. .a..s c -. .s _a .< .n .

c ..s a ,.. - .. .. .. .. , . .u. .. data presented (includi.g -he perfor-

                                                          =ance curres and the perfer:Ence indi-cated thereby) with the exceptien cf the warranties specifisd in Subsection A of
                                                          ~..u. as A.-._a ..,.
                                                                                                       ~

1 V, a . _<.~we s.a . . - sCe.d h gw-C .m_* 7 . .u. g . ..w,8c.ga e_g w,._wg ._a.._e w. g.o o. .i. . .a . t

  • G,.

c - h

               . - . - - - . - - , - - --   ,-        ---          - - . , . , - , - . - -            -,._e      - , . . - . - - - . - , . , , .            ...n        ,        - --

l l l (3) Conditions of Perfo_~ance Warranties

     ,--~.

e (a) The general arrange =ent of equi;=en manufactured and furnished by 3Ei, and the general design and arrangement of related equi;=ent furnished by others, ! I shall b3 no leu favorable, as date.~ined by bcth Jersey Central and 3Ei, than indicated en the arrangscent drawings (:iisures 2-1 and 2-2) con-tained in the Technical rescription. e (b) Tne eT.:1;sant and =aceriala supplied undar this . Contract shall be erected, crerated, tested, =ain- ' ttinec and prclected frc: dmaging agen:r by Jersey Central in accordance vi:t ganen117 approv-ed practices, and shall be c;erated and r/.tn-tained it.acccedance with all retsonable operating ' and mainter.ance procedures and cenditions of ser- , vices specified by 3Ei in the operating and =ain-tenance instruction backs supplied persuan: o Subsection 2(5) of Article I. (c) Jersey Central shall provide, and nain:ain, these services, equi;=en: cnd =a:erials, to be supplied b7 others, which affect the opera icn of the services, equipment and materials supplied under this Contract, in confo. ance with generally a;- proved practices, and having characteristics which nay be reasonably specified by 3Ei in sufficient r ti=e to ;e.~1: Jersey Central to incer; crate such

   .h 27
        .r characteristics in the Plant.

(d) All heat transfer surfaces shall be clean in-side and out. f (4) Recedy (4. ) Ni.i shal' repair or replace and install einip-ment and systems supplied by it as nacessa n t er.able 'the NSSS to demonstrate the warran-ted cutput. (b) Jersey Central thall decenta=inate at i:s or expense all the equipnent and systa=s '

    ~

to be repaired er rep' aced as well as the s-surrounding area if necessa.7 te facilitate such repair or replace =ent. Jersey Central shall perfor= the decenta=ination and shall reduce the. radiation levels in such areas and frc= such parts to pe. issible levels . Pe issible levels are defined as these pre-scribed as acceptable by the AEC at tha = such repairs ars =ade. If any naticnal, state or local regulatory agency having juris-i dicticn dete.~ines that ccre stri. gent levels of radiation are necessary or desirable for protection against radiation ha::ards, the nes: stridgent of such levels then in effect shall a 2c

                                                    .                                   - - -   \

l 8 1 l 1 1

        ^

be deemed to be the standard to be achieved

          .                          .by Jersey Central 8 s deconta ination effor:s .
3. Design. Woric.anshin and Materials (1) 'farrant?

38.W warrants that the equi;=ent, =aterials and , services supplied under this Centract will be of the kind and quality de ignated or desc_"_ bed in chie Contract and in the Technical tescription and wid be free frer._ defect:s in desie^n work =an-w.g, M -- a ship er caterials for a peried of twelve (12) sonths frc= the date of Acceptance;,aa defined in. _ (-

     \
                  , h. .

s.

                      ,    Artic12 VI, except that for an item hhvia.g a service life cf less than twelve (12)cenths under nor=al practice, the applicable warranty ta= shall be such shorter period.          Any repair or replace =ent under this warranty shall be rewarranted for a twelve (12) =cnth period frc= the date of the initial repair or replace ent.

(2) Cenditiens (a) S.e equi, ant and naterials shall be operated, tested, naintained and protected frc: da aging agents by Jersey Central in accordance with gen-erally apprcved practices, and shall be c;erated and maintained in acccrdance with all reasenable 4 8 29

operating and =aintenance procedures and

   ^

conditions of services which =ay be specified by 3Ei. in the operating and naintenance instruction books supplied persuant to Subsection 3(5.).cf Article I. (b) Jersey Central shall provide, and naints.in, those se.- rices, equi; ent and =ateria.ls to be supplied by c hers which affsc the oper-ation or the services, equi, ent and =aterials - supplied under this Centract, in can'o. ance with generally approved practices, and h ving characteristics which r27 be reascnably specifiac by 3Ei in su*"icient tine to pe:. sit Jersa7 Central to incorporate such che.racteristics in the Plant. (c) Jersey Central agrees to secure and prese ve, for exanination by 3Ei, appropriate reccrds of operation and =aintenance adequate to en-i able the parties to prcperly ascertain their r .~'.- e .k '. a- a.~d d" ". . = s a ~ d s ." ..s c u .

                                                                                             .                 c.' ..".a. wa.- .= .. .4 c .e e..h._4 s A.we.d             .. .a.l a   U< .

(d) Jersey Central shall give written notice of each clained defect Oc 3E4 within thirty (30) t calendar days fren the date the defect is ( = l g

detected by Jersey Central. No clai: under the warrant 7 specified in Subsection 3(1) of this Article V shall'be nade unless actice thereof in confor=1ty with this paragraph is given by Jersey Central duri.g the tenure or within thirty (30) days after* he end of the Warranty period. (3) ,Rened7 8 (a) 3F4, upon tine 17 notice by Jersey Cen::al, shall repair, or at its optien, replace, and i install any part of the equi;nen cr =a:erials supplied under this Centrac: which fail to ccnform to the warranty in Subsecticn 3(1) of

                                                     *w.k..' s A.-* *.c _' e ,~v .

(b) Jersey Central shall decen:=~' .a:e at i:s own expense all the defective parts to be repaired er replaced as well as the surrcunding area if necessa.7 to facilitate such repair or replace =ent. Jersey Ca.ktral shall peric n the decon:2- d .ation and shall reduce the I 1 radiation levels in such areas and frc= such parts to pe =issible levels. Per=issible levels are defined as these prescribed as acceptable by the AIC at the ti=e such re; airs are nade. If any naticnal, state er local regula: cry s

                                                                                       "9
 -   ,        . , - . - - . .        - - - -       ,      -.,    ,      --,   ,__ ~           . _ , , , , . . , - - - . - - , , , _ , , . , . -       -

agency having jurisdiction dete.-: tines that R

      .           more stringent levels of radiation are necessary or desirable for protection against radiation hazards, the most stringent of such levels then in effect shall be dee=ed to be the standard to be achieved by Jersey Central's deconta=in-ation efforts.

(c) If B&W dces not repair or raplace such defective part within a reasonable ti=e af ter written notice of such defect is received by it,or if any e=ergency exists rent.ering it i=possible er i= practicable for Jersey Central to call upcn 3&W to repair or replace the defective part, Jersey Central, after notice to 3&W, shall

                =aka or cause to be =ade such repair er replace-cent. In such event, 3 B shall reimburse Jersey Central for the reasonable ecs      of the repair or replace =ent including the cost of
                =aterials, installation, and labor, exclusive, however, of any charges for decentacination.

( 3&W shall not be res;cnsible for :he suitability or performance of =aterials, equi;=ent or t l , parts furnished, or repairs =ade, cr work dene i by others, or for any 1 css or expenses arising frcm such work, =aterial, equipmen , parts er (

        ,       repairs unless the wcrk is specificall7 crdered by 3&W.

32 l_

e (d) The liability of 3W under the Warranty spec-s ified in Subsection 3(1) of this Article V shall be 1*-'ted to the cost of repair or replacenent of defective equi;=ene including installation, as specified herein. . 9 I I l es i l I t l I alt 4 i OJ

1 i an ARTICLI VI - FRIOPEEATIONAL TISTITG: ACCIFT.GCI A. Inscection of Werk At any ti=e during the design, fabricatic and testing of the equipment and syste=s to be supplied hereunder, E&W shall per=it e=ployees of Jersey Central ar.d of its agents te follow the progress of the work and the r.anner in which it is being done, and to inspec:

                              =aterials in the process of =anufacture or a: poin of delivery, in Order that Jersey Central =ay be satis-fied that all =aterials and work =anship are in accordance with the require =ents of this Ccr.:ract.                   Such e=ployees cf Jersey Central or its agents shall have free access to the werk and :: all parts of 3&W's plan: where :he work is being perfor=ed.            3&W shall =ake every reascr.-
      .                       able effort to arrange such access                    : the plants cf any of ,its subcentracccrs .cerfor= ins. work or suc..clyinz.

l

                             =aterials related to this Centract. E&W shall furnish suitable office facilities for such e=picyees a: 3&W plants and shall no:ify Jersey Central seven calendar days in advance of scheduled principal tests so tha:

Jersey Central =ay be presen:. The e=picyees of Jersey Cen:ral or of its agents shall remain e=pl:yees of Jersey Central er of its agents, as the case =ay be, for all purposes during the design, fabrica:ica and testing cf the equip =ent and syste=s to be supplied hereunder, and : heir salaries, travel, cc==unica: ices and living enpenses shall be paid by Jersey Central er its agents, i al.I$ l

e as the case =ay be, and 3&W shall have no obligation to

            ','        provide Work =en's Cc=pensation or Cecupational. disease Act coverage for any such employee. 3&W will be liable for personal injury or property da= age arising out of such employee's activities at 3&W facilities only to the extent that such liability is covered by its exist-ing insurance policies or progra=s, exclusive of Work-
                      =en's Co=pansation or Occupational disease insurance.

Any liability for da= age in excess of B&W's applicable existing insurance coverage or progra=s and liability to such e=ployees under Work =en's Cc=pensation and Occupational Disease Acts shall be the responsibility of Jersey Central.

          ~

c' 3. Preccerational Testing

   ?.

As the equip =ent and syste=s supplied by 3&W are installed, and as 3&W and Jersey Central agree that such testing is appropriate, Jersey Central shall conduct and supervise preoperaticnal tests on such equip =ent and syste=s. 3&W, on a timely basis, in accordance ,with the schedules established pursuant to Subsection A(1) of Article I!!, shall propose to Jersey Central, and 3&*4 and Jersey Central shall agree upon, operating or test procedures for purposes of this Article VI. The objective o( such tests shall be to demonstrate that the various equipment and syste=s perfor= satisfactorily and neet the design and perfor:ance objectives specified for such equipment

    %m
  • IE as 1

l l

and systa=s in the Technical Description. When :he

    .- - s  '

results of a precperational test for an equip:ent ite: I g or syste= shcw :ha . the design and perfor=ance objective has been satisfied for such ite= or systa=, Jersey Central shall so indicate to 3&W in writing. , . C. Accectance Upon satisfacecry cenpletica cf all precperational tests en auxiliary equip =ent and systems supplied by 3&W, and upon successful denenstratica of the warranted output of the NSSS (Subsecticn A(1) cf Article 7), Jersey Central shall give to 3&W written acceptance of the NSSS (herein referred to as " Acceptance") . Acceptance shall discharge 3&W frca its obliga:1cas ,under Subsectica A(1) of Article V. - ! D. Release by Accectance Acceptance under this Article VI shall no; release 3&W frem uncc=pleted work or frc= warranty cr other liabilities, which, by the tcr=s of this Cen:rac , are not expressly discharged by the Acceptance. v 26

ARTICLE Vu. - INDEMNITY AND INSURANC3

               . m.

A. Jersey Central (1) Frc= the date that risk of loss of, or da= age tc, the equipment and systa=s furnished heret:nder passes to Jersey Central, as provided in Secticn 3 of Article III, and until the nuclear er.argy prep-ert7 insurance is acquired in confor=ance with Subsection A(2) of this Article VII, Jersey Central shall provide and =aintain insurance in the na=ec of Jersey Central, 3&W, and 3&Wis suppliers and subcentrac crs, covering the equip =ent and systa=r against reascnably insurable risks cf less of, cr da= age to, the equi;=ent. . (2) Jersey Central, pricr to the date of receipt of

s. .

fuel asse=511es at the job site, will secure and

                                                =aintain, at least until Acceptance as defined in Article VI, nuclear energy prcperty insurance in' an a= cunt equal to the cc=pleted value cf the project er equal to the.=axi=u= i= cunt which can be secured through the insurance pcols (:iEFIA and/or             ,

MAIR2), whichever a= cunt is lesser. Such insurance , shall provide that Jersey Central and the insurance carrier, er carriers, waive any and all. rights of recev-ery and/cr subr0Eation which they er any of the: =ight 1 a '(* - - - . , , , .- -. .- ..- - .-. . , _ . . - - _ . . _ . -~ . _ - - --

have or acquire against 375 and its suppliers s 5 and subcontracters. (3) Jersey Central agrees that en and after arrival of nuclear fuel cr. s'.te the =aterial, ecuipnent and/or services to be furnished hereunder shall not be l used er operated unless and until (a) Jersey s Central shall have entered into an agreenen: of inde=nifica:ica with the AIC, as provided under Secticn 170 of the Atenic Inergy Act cf 1954, as

  • anended, and (b) Jersey Central shall have cb aine'.

auch policy or policies of insurance, or shall have provided financial protectic of st:ch y;e and in such a= cunts as the AIC shall require as a condi-tion c't l':s entering into the inda--':7 agree =en: , s - referred te in (a) above. Jersey Central agrees , that'5FA and its suppliers and subcentrac crs shall be included a=cng the persens inde=nified under (a) above, and a_neng the pepsens protected under (,b) above. I Jersey Central agrees th =aintain such indennif*catien agree =ent and insurance or other financial protec-tics in .*uli *cce and e**ect in ecnfernance with AIC regulattens and Eenerall2. accepted utility practice so 1cng as the materials, equip =ent, and services Oc be furnished hereunder shall be used. (k) Jerse[Cen:ralinda-'*'esandholdsharniess3?!:1 4

                                                                                       -a

and its suppliers and subcentractors against all

                ,m                                    losses, clains, da= ages er lia'* " -*-s arising i

out of or based upcn bcdily injury (including death at any tine resulting therefrc=) and less of or da= age to any preserty located on or off the Plant site whenever or wherever cccurring,

                                  .                   when due to the negligence of Jersey Cencral er its em;:1c7ees er agents in the perfornance of this Contract or in the cc.eration of the Pih..t, or regardless of negligence when resultics in whole or part directly cr indirectly fmm nuclear reaction, cuclear radiation, c'r rad *cactive centaninatten resulti:'.s fren incidents-at the site, whether centrolled er uncencrclied.
                -                   3.      3&*4 (1)      Incept to the exten: Jersey Central is or would                                                                                           '

be cenpensated by insurance secured under Secticn A of this Article VII or by Jersey Central's other existing insurance coverage, 3?i inde=ni-fies and holds harnless Jersey Central agains all lesses, clad-=, da= ages, er liabilities arising cut of or based upcn bcdily injury (including death at any tine resulting therefrc=) and loss of or da= age to property cccurring pricr to Accept-ance as defined in Article VI, and due tc the -

           /'                   6 sc

_ , , - - , , - , , , . - , - . - - , . . . _ . -----,r-, ,- - - - , - - - , . , - , -- - + - - , - - - , - , - , - , , , -- -----,.,-----,n. - . , , -- , _,,--,-._a,

I negligence cf 3&W and its suppliers er subcon-

     -'s tractors, provided such bodily injury (including death at any ti=e resulting therefren) and loss of or danage 'to property dcas not resul; frc= or is not caused in whole or part directly or in-directly by' nuclear reaction, nuclear radia: ice.,

or radicactive, conta=1 nation resulting fret incidents at :ne site, whethe.? controlled er uncontrolled. ' I (2) , For its cwn protection and for the protection of Jersey Central, with respect to Subsection 3(1) of this Article VII, 3&W at its sole e:cpense vill secure and maintain in force (and sha*1 cacsa its , suppliers and subcontractors to secure and naintain in force), during the tine employees of 3&W or of s its suppliers cr subcontracters are present a: :he plant. site far, or in connec:ica with, the perfors-ance of site work or cperations, policies of insurance of the following types: (a) Worknen's Cc=pensatien Insurance with limits of liability at least as high as the s:a: : cry id-d:s of liability in any sta:e in which 3&W

                                                   =ay be required to pay cenpensa:icn; (b)        E=ployers Liabili y Insurance with lini s nc:

less than $5co,cco for each cecurence er disease; to

l l 1 I (c) Cc=prehensive Autc= chile L'. ability Insurance O including cwned and ncn-cwned autc=cbiles operated by e=ployees of 31/4 cr its suppliers or subcentractors with bodily injury l' d ts of not less than $100,000 for each persen , and not less than 4300,c00 for each accident i' and with p:Operty da.ca.se ' *-its of not less than $1C0,0C0 per acciden . A cm.rtificste of such insurance nust be filed with and approved by Jersey Centra.1 prier to ec==ence-

                                        =ent of 1 aid wori: cr cperations at the Plant s:.:e .

l 9 e6 0 l

       \

l i e

ARTIC'I VIII - PAEC IICI}eT"Y

            --~~.

A. 3&W shall cefend at its own expense an:, suit or acticn brought against Jersey Central based en a c1=*- -hat any individual piece of equi;=ent er any systa= fur-nished by 3&W hereunder, cer.stitutes * 'ringe=ent cf an apparatus or system c1*d- cf any patent cf the United States, and .EET shall aise pay all coste and da-ages awarded thervir. Egainst Jersey Central. In case any such 3&W fu.-/,shed equip:en: cr system, er

                              .sr.y . a.-+ t.".=. ' =. . .' -., 's
                                                   .               .    %. 1d N. ~. .' a.s ". . . ' s =. ir " '-,- . .. . . ,

ar.d its use is en.fcin3d, 3&W prc=ptly shall, a: its

c. .rp . , s . , ,. ,..._ ._ s c.,. o._
                                     .    ...          ..              .                 , 3 e y .,, e.. . . ,-.. ...w ..    .. ,...

centinue using the equiptent cr sy: tem, ceplace it , s vith =cn-infringin; equi;=ent cr systes, or cedify 10 t so *t becemes scn-infringing. *Where Jersey Central ,

                             ;a.as given written instructicas te 3&W wnich direct (1) a specified =anner er perfornance of the centract or (2) a specific design er arrangement of the equip-
                            =en: cr a part er parts thereof to be fur.ished here-

, under, c her than a nanner of perfor:ance, design or arrangezent, proposed by 3kW, Jersey Cen:ra'. s:1 '.1 t defend at its cwn expense any suit er actica based en I a clai that the equip:en cr a part therect furnished hereunder ccnstitutes infringe =ent of a United States

                            ,a .= .,.      "

w..e.==. ' ' sr.. .*. _..- d...,=..=.*.*.

                                                                                                ==.s"'..'.-..*"-c..w.'..=...

ins: ucticns, and Jersey Central shall aise ;ay all

   /.                       ces:s a .d da= ages awarded tha-='- agai.s: 3&W.

I b l i. , l I

                                                                             ** 17.

i l i I r 1 i l

          -   -w-    +   4
3. Neither Jersey Central nor 3&W shall have the right.to e

claim indemnity under this paragraph unless prengt notice of the assertien of any clai: for which inden-nity is scught is given in writing and unless the party seeki .s; indec:nity nakes available to the other party all ethar needed infer =atien, assista.ce, a.d auth rit7 it Possrsced for t.tc defense of any suit or proceedisp irt wh* ch such clai:t '.s asser.ed. a e j . .

  ".b                                           e.
                                                *3

4 ARTICII IX - GovE?_i m r-' At.:qc3rzA7 c;;g ,

          ,"" N
                              .c a.- *. .= s .= =..-       a. ~e,.._ . e ' ..a ' a =. .- air. c -....- *. .*".. - ._*. ..' ,- =. . _ . . ,

i

                     ,'a
                     --  e.r.s e s ar.d . '..'a.e." e,-va.. . ...

au'w.'a.c.** -

  • a ,. ' c..s .i_' _i _' >... = . a. .
 ,                  be obtained from the AIC and other faderal, state and 1ccal agencies.                          ELW shall obtain all authori:r-icts which s .. . ,.a..:. g t .- .. c   ~<.c w. z.~.~',t         c1 'r w~.'s i                 ir..' .#. .        u'..  .    **.. ,na...*.w.~.e'.             .' .
                    -<.s .wr. f a..*..'..*             .'.e. .n       ar.e. '. c. a-t*. .~~=   , .           . c.*' e u._' ,...w..,
                                                                                                                             .                       .. . . . = .

centractually desip ated destinatiene. Jersey Central sha'.1 . be . a.y.c ,.s._ 4 w , e .< c,., .,, .L.-. .4 .,. . 3 e,.l. a, .. .. . .. . ., .. , ,. ,...

                                                                                                                        . . . . . . . .         . . ,. .. s. . s 2.'.;    the Plant site.

P

                   .at .
                             .r v.

(1) Jersey Central and 36W shall previte such reasen-

       ,,                                 able assistance aJ nay ba requested b ,-~ :he other a

party in obta*-* ng the necessary .GC s.uthorizan' ens. (2) E S' sr.all perfor= the nucla c safe *,, a.alysis for its scope cf sue ply fcr the ?lr.: as required for Jersey Central to obtain an AIC ccnstruction per- _ a ,, aa cpe,a.,.

                                                                                           . ec.se au..u.c a _a _.e,c ..a._a.

s the Plant at the warranted cu:put level. (3) 3!.4 shall prepare, for Jersey Cen::al's review and approval, er assist in the preparatien ef: (a) these sections of the sa'e y analysis reports ( u - l e e s1.,u_...a. ~. 4 c . ..e . - .*_ w- s. w o wn.a. . .e. 2_ _ ., . e ,, , u,.. 3.

                                                            . . . a.,
                                                     .                   s a.a. . . .../ w . .: 3. .4 - a. . . r. _1_4 . A . ,e.. x-
                                                                                                                                 .              . e _ e.. . ,

3.,34 . g ,3 gy.4 a . .

                                                                                    . . _ .a. ._ . 3 ,.

1 i

c- . - - - - - - - - - - - - k (b) other reports, data, descriptiens, drawings

        N
        \

and calculatices, which rela e to 3&W-stpplied equipment, syste=s and services, as nay be reasonably requested by Jersey Central Oc ob-tain the necessary per=Ats, licensa.s and approvals for the ccnstructicn and c.reratien. c.' k.a 2.1an . .a. . .". a. wa,- = . ,. .=d ~ . ~ ,,. . ~ . ' 4. t =. .'. , anc (c) .Eny repcrts wh!.ch Jersey Central is requirac to =ake to the AEC under the plant constructica x e. -u . s c ,e .- ,.~.a.

                                                                                           . . ,- , s . . .s. e , .,. .. u.... .. .. <. .. .. , .
                                                ..".a. s'-k  - -      *
                                                                      . =.--

r - - . s .= =. c.c ' - =. .* ... . na . '. . .. w e..d .".. <-a developed by 5&W and relates to 3&W's secpe of supply. Such reports ctttil be furnished e , by 3&W **ithcut add'tienal cost :: Jersey Csn:ral if recuired priar_.o_A1:tetareerag d e.#* .ed *..*. 4.- . 4.c '. = VT. . _ _

                                                                                                         ?." ==".u'*.*=.a.
                                                                                                         -        ..                  .".=..==a.'.*.*.,"'s
                                                                                                                                                                          /
                                               ** e =. =.cor*.s sha' 1 ". e ." ". . ...' s.".a. d.
                                               ...         .                                                                a.a      a.b.=
                                                                                                                                     .       e =. w".d a. k.
                                             -         d                                                                                                                    i r .-o v d--a s 2 2-W    -       w * ..". .- =.as ec.a"' .
                                                                                                                           -,   =..s a . d a.. . ' . . - . . ' . =. ,./

services rendered. (h) 3&W shall *arnish the services of such technical personnel as 3&W and Jersey Central cccsider necessa y to nake presentations at nee:ings and hearings with the AEC. (a- .- .ne .xe.e. g.4.u .-

                                                      ..      ...>     - . e.,     .w.
                                                                                       . . . .     ..r s     ..s ' "--d
                                                                                                                   -      --- -    a. s ac c a.- . .= d.

wy,

                                  -    -nyn t .d e.-.           .."_d s     u~,~ .   ~. . .-= c . , .,_' ' c a- s . s d ..a.c ".-. =. d . ' . .

V uns '

f I i o b .a1. ' .s .EC a" '..".o r' .*.. a ..' c..s , .* .~.- ' ud -.* .s- ~..".e -

                                                                                                                    .. = -

product 1:n of the prei' ' nary and final safety analysis repercs shall be the res;cnsibility cf Jersey Central. 1 E. Other Gover nental A encies (1) Jersay Central and 375 shall ;rvide such reasen-able assi. stance as riy be raquestec cf each other - in ebtaird.r.g authcricatices 're.n o;her govern =encal assncies. , (2) A'/. coc:s .*.r.currec ty either party in cbcai .ing; a . cart'.cular autherica:icn shall be the rescensi- . u .s .,..< ~.a.' c.". ~ .~ e ca. .f- -* a~,~ c.".s *.b .' s

                                                                . -          .     .     .*0 - ch ~.a --
                                                                                            .            ' - *.s  - - ~ "...=       ,

A

    ,                   author 12.ation.
   \       .

t P 9 h6

4 ARTICLE X - TXGS The Centract Price is exclusive of any present or future federal, state, =:nicipal or other sales or use tax with respect to the =aterial or equip =ent or services covered nereby, of any other preser.t or fut tre excise tr.x upcn or meaaured by the t;ress receip7s fren this tre.sactica cr 'any allecc.tsd pertien thereof or by ths grces valu2 cf the =aterial or equi;= ant coverad hersby, and cf any pesent er future property tan or ri=1.'.a. cr.ar;;o <ith l raspe:: to ths ,n:eria', or equi; ent covered hereby. If r 3Y4 is required by applica'cle law or regulatien Oc pay or

                             <cliec: any such tax or taxes en acccun                                                             cf this trans-actica or the =aterial or equipcent                                              .r servicts, covered I

hersby, such anount of tax shall be paid by Jersey Central. It is centempla:ed that under en13:ing New Jarsey Sales e r.d Use Tax law and Regulatiens thereunder tha; (1) Jersey Central wi.11 furnish 3Ei and its subcontractors and sup-pliers a capital i=provement certificate nu=her which will' exe=p frc= such taxes =uch cf the war'.t and services :c be done by subcontiactors and suppliers hersuE. der and (2) Jersey Central will furnish to 3F4 for its sole use a direct payr.ent pe it nt=ber which will el* diate 3EPs responsibility to the State for any sales er use tax en this transacticn er the =aterial, equi;=ent, or services covered here'cy. i I

  • l l
     , _ _     ~ _ _ _ - . . . . -_. - - .    ,,  - - . . , - ~ - - - - - - -              - -   - - - - - ' ~ - ~ ~ - ' ' ~ ~ - ' ' ' - ~ ~'-'~ ~ ~~   ~ ~ ' - ~ ~ ~

ARTICI.I XI - DEI.AYS AITD DAMAGIS Neither Jersey Central nor 3? 4 shall be liable to the other fer any loss or da age resulting frc= any delay in performance or from any failure to perfern its re- , spec-ive contractual cbligaticns, within the t'.ne spec-ified herein, due to fires, ficcds, strikes, 2& dor dis-putes, labcr shcr: ages, inability te secure = acarid.t, riots, thstta, c.ccidents, actc or failure tc ac cf 3cv e:nsant,, or any othe: cause whatscevar, whether sin-ilar c d:.sst=ilar to :ncs 3 enumerated above, beyc.;d the ressenable centrol cf the party concerned which =ay de-lay or preven perfor:ance hereunder. The :1:e cf pr-fc.-a ce shall be extended for a period equal :c the . time icst by reasen cf any such delay. ?rce.ptly upcn

            ,          the cccurrence of any delay the party celayed chall notify the other stating when such delay ec ::nced and upcn the
enctal of such delay in whole or in part shall =ctify the other party of the extent of resumption of work a.d the date thereof so' that the parties shall at all ti=es 'c.cw the a=cun c' -d-a clai=ed Oc be lost by reascn of such delay and the pericd of ti=a for which time cf performance
                      =ay be extended.         3c h parties shall =ake every effer: to kasp delays in perfc.~ance at a                                          '-'m_~.

4 hh

ARTICLZ XII - CONSZQUEU*IAL DAMAGIS E&W shall not be liable in any event for icss of antici-pated profits, loss by reasen of plan shutdewn, nc - operatien or increased expense of operatic: of other equip-l nent, or any special er cc; sequential loss of danage bt , cry nature arising out of th-3 ccustr2c;ica c: cpera-1,cn of the Plant. - i d i l i i e e 4 e s

                                             !.Lc,

ARTICL3 XIII - ASSIGNENT AND SU3 CONT

  • ACTING
       .            A. Assi nment An7 assignment by either SEi cr Jerse7 Central of this Contract or an] ._shts hereunder, without the prior written ap.7roval of the other, shall be void and ret merely voidable, providad, hewe'rer, cne.t no such prier approvai by 3Ei shall bo Mquirad for s.r. assignr.ent by Jr.rsey Central of all tr part 4f this contr3.0      te       ,

another subsidia.7 cenpany of ths C+neral P:fel:.c Utt':;, tits Corporatten,

                   'd . Sabccntractin:   -

i (1) 37. i shr.11 furnish to Jersey Cent:T.1 b.dders lists , for equipcent preposed Oc be subcentracted by 344 6-I prior to the issuance of invitations to bid. At Jerse7 Certra.1,'s rsquest EE will idd to any bidders list potential subcentractor: prepcsed by Jersey Central and acceptable to 3Ei, (2) Eefore EEi places any subcontract for the equiptent referenced in Subsection 3(1) of this Article :CII, Jersey Central shall have the right to designate an alternate vendor or subcentractor, which =ust be i acceptable to EEi with respect to the technical, delive.7 and centractual aspects of the contract, i provided Jersey Central pays 3Ei the a=ount, if any, ( b7 which the cost of the acquired equiptent exceeds the cost of the equipment preposed to be selected by 3Ei. s W i / l l 50 1 L

1 (3) 3&W shall assu=e as full ressensibility to Jersei- ' l Central for the acts er c=issiccs of its su'cen e rac :rs i 35 fcr t'.e r acts or cuissi::s of perscas A*-=.c,_,y e= ployed by 3&W, J e i e e p m l 6 I a (~ . b P l I I I l i f l 5 s= t r_ __ _n__

   .       ARTICTI :CT - SF*iCRI Unless otherwise stated herein,.any supporting s. eel ::

be furnished by 32M will be designed to su;;cr: -he equip-ment to be furnished and will te designed in accordance with the Rules of the Icerican I.nst1*cte of Steel Ccnstruc-tion effe::ive as of Neve::bar 25, ;c66. Ixcept as required under Subsecti:n 2(1) of Article II, if 2!%' as rsquired ic  : incraasa the size or weight of its su;;cr ing structures to confor= to c:her than these ?,tles er because of additi:nal leadi.sgs i=;csed by Jersey Central, this Con:rece shcl'. be aquitably ad. justed !cr any addi:icnel ecsts and tire Of per!cr:rn:s cecisioned :: IIS the:eby. e 4 1 6 / / se

ARTICT3 T7?I - NOT17ICAT CN OF CI.AI)bi Jersey Central shall notify 3 E in=edia:ely, by registered

        = ail addressed to 3 E a: 161 Iast 42nd Street, New ? rk, N.Y.

10017, of all clai=s brought. Against Jersey Central for which 3B =ay be liable, and 3E shall notify Jersey Central inedia ek,', by registerst =sil addrsssed to Je: sey Ce .:ral ' at P.O. Ext 55, Mcrristeun, New Jersey 07960, cf all clai=s br:ty;h: against 3E for which Jersey Centzal =ay be 11at:1e. P E o aun ein

                                            GX ?

3y ls/3.E.51:s Title */ ice Presidact (sta,) Este Cet. 30, 1970 Attest:

                                         /s / 1. es -.-

S'E 3A I COC N *. C OX COM? % Tl 3y /s/ ;. R. ;.eisker ~ Title C-e .' 1 yrr. ' :r'. (SIAL) Date To r. ?c, ic' 0 Attest:

                                      /s/ 3. A. Mi . .e r G

e

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                                                                                                  ~

10/15/70 i .

CCNTRACT TCR HUCTI.AR It0I;MI't:' A:D SIRV CIS AME C. C 30. 2 .

2 1s Amend =ent No. 2 a=e=ds the Cc= tract fer Nuclear Equipment and Services (Contract) e=tered i=to between Jersey Ce= tral Pcwer & Light Cc=paq (Jersey Central) sad The Babcock & '411ccx Cc=pacy (38M) dated effective Ja=uary 31,1%7, to ad:1 ;revisicas related to quality assurs:ce a=d ,g.ality c:ntrel. , M e ;arties agree as fo news:

                                                                                                    ,                        l
1. 382 shall establish and =a1= tai = the quality assurance
                       ;regram described in Parsgraph 51 cf A;;e dix 13 cf the Prel**'-ary Safety A=alysis Repcrt, as a= ended as cf May 7,1%9                    I=ple=entatic:

0

  • of the quality control require =e=ts cf Faragraph k of A;;endi 13 cf the Preld=#am'/ Safety A=alysis Report shall be by 3&*4's " quality
  ..                                                                             '                       *o
  • ControlProgram3;ectrication"(s;ecifical, lou 51132/G300,Cated March 13,1%9)' is the =a=ufact== and prec=s=e= of e pi;=est a=d materials to be su;;11ed under this Cc= tract. The quality levels cf S;ecification #1132/C369 to be assigned to the varicus ce=;cne=ts a:d systa=s to be su;; lied hereu= der shall be as ==tually a6 reed by Jersey Centrsi and 38M.

[ 2. The devele;=ent and i=pla=estati:n of the quality I assurs=ce pr: gram a=d the quality cc= trol pr:grs= specifics:10:s referenced i: ;aragraph I abcve shall no result is a cha=ge in the l Centrset Price er shi;=ent schedule herois; provided, however, that if 38M i= curs additic:a1 costs or experiences delays in the procure =en: ofauxiliaryequi;=e=tfr=Iits:ub-venders (thispr:P.so shall net e M

i - apply to the reacter ecolait piping, reacter vessel internals, pressuri:er, steem generaters, and reacter vessel

  • and head) attributable directly to the i= creased require =e=:s in the quality ccatrol pregras specificaticas, such cost increases shall be for Jersey, Central's account and the perfer=acce schedules shall be exta=ded, if required by such delays in precurs=ent, in acecrdance with the provisic=s of ARTICLZ XI - EUATS & DA19.CIS.

JERSIT CI:C?E PC'4ER & LICIC CC:G.Cf my /s/ a 2. s =s Title Vice ?;ssider.t (SIAL) rate Oct. 30. Ic"': Attesc: *

                       /s/ L. Sloan THE 3ABCCCI & '4ILlllCX CCMP.LTI By      /s / P. E. F.eir.*<er Title Gen'1 Mer. - 7?G               (SIAL)

Date . Nc*r. N. 1C*C Attest:

                        /s / D. A. Vir. .er e

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10/1$/70 CCNTPACT TCR NUC!IAR TOUI?'Cr* X D SIRVICI_S

                                                                                              'MI A   x Cl*~ ::0. 3                                                                .

This Amend =ent :Tc. 3 s= ends the Centract for .':uclear Iquipment and Services (Cc=:ract) entered i=tc between Jersey Ce= tral Power & I.ight Company (Jersey Cent si) a d *:he 3abecek & Wilecx Cc=pa=y (384) dated effective Ja=cary 31, 1967, to adjust the

                                   ; regress pay =ect schedule in Subsections 3(1) a=d 3(2) cf AR'"!C'.I                                                                       .

FI - CCICRACT PRICI AND TT*23 CF PATC;T pursuant to Subsection 3(4) cf said Article rf. . The parties hereby agree that th'at ;crties of the Contrac Price, as addusted ;ursuant to Sectie C cf said Article TI, whic$ re=ains u=;ait. as cf May 1,1970, shall be payable as fellevs:

1. Nine (9) consecutive =ctr.hly pay =e=ts cf 4.4 perce=:
                       .           ci she CentrscT rr:.cs, ss ac;usted, scau. os payacle cur: .g ;ne ;er cc                                                                      .

May 1, 1970, through Jac=ary 1, 1971.

2. Twelve (12) ccusecutibe scuthly pay =e::s cf 2 5 ;:erce=t cf the Centrac Price, as adjusted, shall ble payable during the period Februa-/1,1971, through January 1,1975.

3 Six (6) consecutive =cethly payments of 0.,8 ;erce= of the Centract Price, as ad'usted, shall he ;ayable duri:g the period February 1, 1972, through July 1, 1972. . i

k. That ;crtica of the Centract Price, as adjusted, J .

r* -=

  • n dr.g u= paid upon ec=pletion of the foregoing =cuthly progress i

pay =e=t schedule shall be payable c= satisfacter/ cc=pletics of the prec;eratic al and accepta:ce tests specified is ARTIC!2 'C -

                                 ;?IC?!?AT C:!AI, '"ISCGhiAC02'3"%:CI. If the prec;ereticaal tests have e-
                                                                         ~

been successe.tlly ec=pleted and throuGh no. fault of 3&*4 the satisfactcry completica et the accepta:ce test is delayed, then the said final paf=e.n-shall be due ninety (CC) da/s f cm the date that the 3553 is ready for the acceptance test and B&*4 so netifies Jersey Ce=:rsi, u=less othe_-wise mutually agreed by Jersey Ce= tral a:d 3&*4. JERSIT CZ3"'2AL PCZOL & LIGE:' COGKC 3y /s/ R. H. Si=s Title Vice President (SIAL) Date Cet. 30. 1970

  • Attest:
                          /s/        I,. Slean         .
                        .                                                    T32 3AECOCI & *4!;00% CCGXC By       /s/ P. W. Rei .ker
                                                                            . Title     C4'1Vr.- E                  (SIAL)

I Cate Tov. ?$. Ic70 - e Attest: -

                    /s/ D. A. Xi =er
  • l l

I l - l . l l I

       .W. 5013                    6
               . ./' ~
s. .
            /                                             .

eg Y Contract for Nuclear Equipment and Services hmend=ent No.4 This Amend =ent No. 4 amends the Contract for Nuclear Equipment and

 -       Services (Contract) entered into between Jersey Central Power &

Light Comoany (Jersey Central) and The Sabcock & Wilcox Company (asW), dated effective January 31, 1967, to provide for the replace-ment of epoxy control red drive mechanism stators with varnish stators. - Thi parties hereby agree to the following:

1. Esw will furnish to GPU service Corporation fifty-nine (59)

Type B varnish i=pregnated bifilar control rod d:ive . 4 ) mechanism stators as designe*d and manufactured by Diamond Power specialty Co. -

2. GFUSC will return fifty-six (56) epoxy stators f:cm TMI-2 to B&W, FCS Diamond Power Specialty Corp., Lancaster, Ohio, by August 1, 1976.

t

3. Bsw will co=plete shipment, FCS T.MI Unit 2 site, the fifty-nine stators desc'ribed in Item 1 by December 31, 1975.

Partial shipments prior to Cecember 31, 1976 a:e acceptable. .

4. GPUSC will pay to 3&W t.5e firm fixed sum of S300,000.00 for the fif ty-nine staters, and not subject to Price Adjuctment under Article kV-C of the Contract as amended.
                 ./ * :              .
    /-
   )
                   "S .        This amount (5300,000.00) shall be invoiced en January 10, 1977.        Payment shall be due thirty days subsequent to receipt c.f the invoice fecm E&W.
6. All stators shall be 4arranted in acccedance with the terms and conditions of Contract Article V-2 as such article applies to new eculp=ent (i.e. 12 months after date of acceptance as defined in Article VI of the Contract).
7. Except as a= ended by this Amandaent No. 4, all ter=s, ,

conditions, instructions and requir me ents of the Centract shall re=ain in full force and effect. I GPU SERVICE CORPORATICN Agent for JERSEY CENTRAL PCWER & LIGHT CO. By: - m

                                                                                ,? m v

O

Title:

< s2 Date:v .4.G ..a d.ti_ /c.d, M Jb

                                            \,]                            #                                          '

Witness: .

                                         - ll.u ~&%
  • THE
  • ECCCX & WILCOX COMPANY By: \e A & 0BnS.u f >

Titi tanager. Coat ets-Tega.L. 3?CD

                                                         .Date: Au us: 11. 1976
  • Witness: v o k d e: %

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