ML20028A170

Forwards Signed Indemnity Agreement B-94 Entered Into Between Util & NRC

ML20028A170
Person / Time
Site:	07002950
Issue date:	10/21/1982
From:	Bouchey G WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:	Page R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
21380, NUDOCS 8211160527
Download: ML20028A170 (15)

Text

oDRp 260 Washington Public Power Supply System P.O. Box 968 3000 GeorgeWashingtonWay Richland, Washington 99352 (509)372 5000 Retoma Tcn

a. sarte AR 5031 Docket No. 70-2950 6N O

October 21, 1982 p

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Mr. R. G. Page, Chief e

Uranium Fuel Licensing Branch V

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Material Safety b

S4 U. S. Nuclear Regulatory Commission N

gc Washington, D. C.

20555

Dear Mr. Page:

Subjec.t:

INDEMNITY AGREEMENT N0.B-94 Enclosed is one (1) signed copy of the subject Endemnity Agreement entered into by and between Washington Public Power Supply System and the United States Nuclear Regulatory Commission.

Very truly yours, 8 Neb G. D. Bouchey, anager o

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Nuclear Safety & Licensing T

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usaiso STATES j

NUCLEAR REGULATORY COMMISSION y~.

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e D,ocket No. 70-2950 Indemnity Agreement No. 5-94 l

.This Indemnity Agreement No. B-94 is entered into by and between i

Washington Public Power Supply. System (hereinaf ter referred to as the " licensee") and the United States Nuclear Regulatory Commission (hereinaf ter referred to as the " Commission") pursuant to subsection 170c of the Atomic Energy Act of 1954, as amended (herein-after referred to as "the Act").

ARTICLE I As used in this agreement:

" Nuclear reactor," " byproduct material," " person," " source 1.material," and "special nuclear material".shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.

Except where otherwise specifically provided, " amount of finan-

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2.cial protection" means the amount specified in Item 2a and b.of the Attachment annexed hereto, as modified by paragraph 8, Article II, with respect to common occurrences.

3.(a) " Nuclear incident" means any occurrence, including an extra-ordinary nuclear occurrence, or series of occurrences at the location or in the course of transportation causing bodily injury, sickness, disease, or desth, or loss of or damage to property, or loss of use of property, arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of the radioactive material.

(b) Any occurrence, including an extraordinary nuclear occurrence, or series of occurrences causing bodily injury, sickness, disease, or death, or lost of or damage to property, or loss of use'of property, l

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arising out of or resulting.from the radioactive, toxic, explosive, or other hazardous properties of

i. The radioactive material dischar5ed or dispersed from the location over a period of days, weeks, months or longer.

and also arising out of such properties of other material

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defined as "the radioactive material" in any other agreement-or agreements entered into by the Comunission under subsection l

170c or k of the Act and so discharged or dispersed from "the

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location" as defined in any such other agreement, or 4

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ii. The radioactive material in the course of transportation and also arising out of such properties of other.; material n

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defined in any other agreement entered into by the Commission, pursuant to subsection 170c or k.of the Act as "the radio-t 1\\

active material" and which is in the course of transportation, shall be deemed to be a common occurrence. A common occurrenca shall be deemed to constitute a single nuclear incident.

4.

"Extt. ordinary nuclear occurrence" means an event which the Commission has determined 'to be an extraordinary nuclear occur _'

rence as defined in the Atomic Energy Act of'1954, as amended.

5.

"In the course of transportation" means in the course of transpor-tation within the United States, or in the course of transportation outside the United States and any other nation, including han'dling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:

(a) With respect to transportation of the radioactive material to the location, such transportation is not by predetermination to be interrupted by the removal of the material from the transporting I

conveyance for any purpose other than the continuat4on of such 'crans-portation to the location or temporary scorage incidental thereto; i

(b) The transportation of the radioactive material from'the loca-

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tion shall be deemed to end when the radioactive material is removed from the transporting conveyance for any purpose other than the con-j tinuance of transportation or temporary storage incidental thereto;

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l (c) "In the course of transportation" as used in this agreement '

l shall not include transportation of the radioactive material to the B

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location if the material is also "in the course of transportation"

' ft p any other " location" as defined in any other agreement entered into by the Cosmission pursuant to. subsection 170c or,k of the Act.

'6.

" Person indemnifie'd" means the licensee and any other person who may be liable for public liability.

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Pub 1[c liability" means any le'.a1 liability arising out of or

.:enulting from a nuclear incident, except (1) claims under Stata.or s

Federal Workmen's Compensation Acts of employees of persons indemai-find who are employed (a) at the location or, if the nuclear incident i

occurs in the course of transportation of the radioactive material, on the transporting vehicle, and (b) in connection with the licensee's possession, use or transfer of the radioactive caterial; (2) claims arising out of an act of yar; and (3) claims for loss of, or damage to, or loss of use of (t) property which is located at the location e

,s and used in connection with the licensee's poseession, use, or trans-for c,t the radioactive meterial, and (b) if the nuclear incident occura in the course of' transportation of the radioactive material, the transporting vehicle, containers used in such transportation, e

and the radioactiva matarial.

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"The location" means the loc'htion described in Item 4 of the i

Attachment hereto.

9.

"The radioactive =aterial" means source, special nuclear, and byproduct material which (1) is-used or to be used in, or 1s ir-radiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment.

- hereto, or (2) which is produced as the result of operation of said resctor(s).

N 10.

" Unite'd-States" when used in a gecaraphical sense includes all Territories and_ possessions of the UniLed States, the Canal Zone and s

Puerto Rico.

ARTICLE II

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1.

At a1141=es during the term of the license or licenses desig-nated in Item 3 of the Attachment hereto, the licensee will naintain financial protection in the amount specified in Item 2 of tha Attach-ment and in the form of the nuclear energy liability insurance policy r

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, If more than one, license f a designated designated in the Attachment.

in Item 3 of the Attachment, the licensee agrees to maintain such financial protection until the 'end of the term of that licanas which The licensee shall, notwithstanding the will be the last to expire.

expiration, termination, modification, amendment, suspension or revo-cation of any license or licenses designated in Item 3.of the Attach-in effect until all the. radio-

. ment, maintain such financial protection active material has been removed from the location and transportation of the radioactive material from the location has ended as.definad in.

subparagraph 5(b), Article I, or until the Commission authorizes che.

The termination or the modification.of such financial protection..

Commission will not unreasonably withhold such authorization.

In the event of any payment b; the insurer or insurers under a policy or polittes specified in Item 5 of the Attachment hereto.which 2.

reduces the aggregate limit of such policy or policies below the a ount of financial protection, the licenses will promptly apply to. his. insurers for reinstate =ent of the amount specified in Item 2a of.the Attachment.

reference to paragraph b of. Item 2) and will maka all. reasonable In the event that.che licensee.has (without efforts to obtain such reinstatement.

l obtained reinstatement of such amount within ninety days after the l

l date of such reduction, and in the absence of good cause shown. zo Ina not contrary, the Commission may issue an order requiring the licensas. sc furnish financial protection for such amount in another form.

l of the Any obligations of the licensee under subsection 534(8) l to inde=nify the United States and.the Co=mtssion.frem public l

3 liability, together with any public liability satisfied by the in-Act surers under the policy or policies designated in the Attachment hereto, shall not in the aggregate exceed the a=tunt of financial including the reason-prece: tion with respect to any nuclear incident,able costs of inve for damage.

With respect to any extraordinary nuclear occurrence to which this applies, the Cc= mission, and the licensee on behali of itself 4.

and other persons indemnified, insofar as their interests appear, ea;h agreement agree to valve any issue or defense as to the conduct of the claimant or (a) limited to Iault of persons indemnified, including, but not B

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(1) negligence; (2) contributory negligence; 4

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l (3) assumption of the risk;

-(4) unforseeable intervening causes, whether involving the conduct of a third person or an act of God.

l As used herein, " conduct of the claimant" includes conduct of persons through whom the claimant derives his cause of action;'

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(b) any issue or defense as to charitable or governmental itununity; (c) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof, but in no event more than 20 years after the date of the nuclear incident.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.

5.

The waivers set forth in paragraph 4 of this Article:

(a) shall not preclude a defense based upon a failure to take reasonable steps to mitigate damsges; (b) shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrong-fully caused by the claimant;-

(c) shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extra-ordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's com-pensation or occupational disease law: Provided, however, That with the respect to an extraordinary nuclear occurrence occurring at faci,11ty, a claimant who is employed at the facility in connection

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6-with the construction of a nuclear reactor with respect to which no operating license has been issued. by the Atomic Energy Connission shall not be considered as employed 'in connection with the actiyit,y where the extraordinary nuclear occurrence takes place if:

3 (1) the claimant is employed exclusively in connection

- i with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by the NRC with respect to the nuclear reactor, and the c1'aimant is not employed in connection with the (3) possession, storage, use or transfer of nuclear material at the facility.

shall not apply to any claim for punitive or exemplary (d) damages, provided, with respect to any. claim for. wrongful death under any State' law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law; shall be effectiva only with. respect to those obligations (e) set forth in this agreement; shall not apply to, or prejudice the prosecution or defense (f) of, any claim or portion of claim. which is not within the pro-taction afforded under (1) the limit of liability provisions under subsection 170e of the Atomic Energy Act of 1954, as amended, and

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(2) the terms of this agreement and the terms of the nuclear energy liability insurance policy or policies designated in the attachment hereto.

The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the 6.

l term of this agreement.

Upon the expiration or revocation of any license designated 7.

the Commission will enter into an in Item 3 of the Attachment, appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided, that the licensee is then entitled to a. reduction in ti.e amount of financial protection under applicable Commission regulations and orders.

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With respect to any common occurrence:

(a) If the sum of the limit of liability of any Nuclear Energy Liability Property Insurance Association policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Nuclear Energy Liability Property I

Insurance Association exceeds $124,000,000, the amount of financial protection specified in Item 2a and b of the Attachment shall be deemed i

to be reduced by that proportion of the difference between said sum J

and $124,000,000 as the limit of liability of the Nuclear Energy i

Liability Property Insurance Association policy designated in Item 5 of the Attachment bears to the sum of the limits of liability of all nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Nuclear Energy Liability Property Insurance Association.

(b) If the sum of the limit of liability of any Mutual Atomic Energy Liability Underwriters policy designated in Item 5 of the.

Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters exceeds $36,000,000, the amount of financial protection specified in Item 2a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and

$36,000,000 as the limit of liability of the Mutual Atomic Energy Liability Underwriters policy designated in Iten 5 of the Attachment bears to the sum of the limits of liability of all nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters; (c) If any of the ether applicable agreements is with a person who has furnished financial protection in a-form other than a nuclear energy liability insurance policy (facility form) issued by Nuclear Energy Liability Property Insurance Association or Mutual Atomic Energy Liability Underwriters, and if also the sum of the amount of finan-cial protection established under this agreement and the amounts of financial protection established under all other applicable agreements exceeds an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection, the obligations of the licensee shall not exceed a greater proportion of an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection than the amount of financial protection established under this agreement bears to the sum of such amount and the amounts of financial protection established under all other applicable agreements.

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(d) As used in this paragraph 8, Article II, and in Article III, "other applicable agreements" means each other agreement entered into by the Commission pursuant to subsection 170c of the Act in which agreement the nuclear incident is defined as a "couenon occurrence."

As used in this paragraph 8, Article II, "the obligations of the licensee" means the obligations of the licensee under subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability, together with any public liability satisfied by the insurers under the policy or policies designated in the Attachment, and the reasonable costs of investigating and settling claims and defending suits for damage.

9.

The obligations of the licensee under this Article shall not be affected by any f ailure or default on the part of the Commission or the Government of the United States to fulfill any or all of its obligations under this agreement. Bankruptcy or insolvency of any person indemnified other than the licensee, or the estate of any person indemnified other than the licensee, shall, not relieve the licensee of any.of his obligations here'under.

ARTICLE III The Commission undertakes and agrees to indemnify and hold 1.harmless the licensee and other persons indemnified, as their interest may appear, from public liability.

2.

With respect to da= age caused by a nuclear incident to property the Commission of any person legally liable for the nuclear incident, agrees to pay to such person those sums which such person would have been obligated to pay if such property had, belonged to another; provided, that the obligation of the Commission under this paragraph 2 does not apply with respect to:

(a) Property which is located at the location described in Item 4 of the Attachment or at the location described in Item 3 of the declarations attached to any nuclear energy liability insurance policy designated in Item 5 of the Attachment; (b) Property damage due to the neglect'of the person inde=nified to use all reasonable means to save and preserve the property af ter knowledge of a nuclear incident; (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicles and containers used in such transportation; (d) The radioactive =sterial.

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The Commission agrees to indemnify and hold harmless the licensee and other persons indemnified as their interest may appear, from the reasonable costs of investigating, settling and defending claims for public liability.

4.(a) The obligations of the Commission under this agreement shall apply only with respect to such public liability, such damage to property of persons legally liable for the nuclear incident (other than such property described in the proviso to paragraph 2 of this Article), and such reasonable costs described in paragraph 3 of this Article as in the aggregate exceed the amount of financial protection.

~(b) With respect to a common occurrence, the obligations of :he i

Commission under this agreement shall apply only with respect to such public liability, such damage to property of persons legally liable for the nuclear incident (other than such property described in the proviso to paragraph 2 of this Article), and to such reason-able costs described in paragraph 3 of this Article, as in the aggregate exceed whichever the following is lower:

(1) The sum of the amounts of financial protection estab.lished under this agreement and all other applicable agreements; or (2) an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection.

5.

The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.

6.

The obligations of the Commission under this and all other agreements and contracts to which the Commission is a party shall not, with respect to any nuclear incident, in the aggregate exceed whichever of the following is the lowest:

(a) $500,000,000; (b)

$560,000,000 less the amount of financial protection required under this agreement; or (c) with respect to a common occurrence,

$560,000,000 less the sum of the amount of financial protection established under this agreement and all other applicable agreements.

7.

The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified or of the estate of the licensee or any other person indemnified shall not relieve the Commission of any of its obligicions hereunder.

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l ARTICLE IV When the Commission determines that the United States will 1.

l probably be required to make. indemnity payments under the. provisions.

of this agreement, the Commission shall.have.the right.to. collaborate.

j with the licensee and.other persons. indemnified.in the settlement.and.

. defense of any claim and shall.have.the. rig t. (a) to. require. the. prior h

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approval of the Commission for.the settlement or payment.of.any. claim

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or action asserted against the licensee or.other person. indemnified.

for public liability.or damage. co. property of persons. legally. liable for the nuclear incident which. claim.or action.the. licensee.or-the.

Commission may be required. to indemnify under this. agreement.;.and.

(b) to appear through the Attorney General of the United. States. on.

behalf of the licensee or other person indemnified, take charge. of If the. settlement such action and settia or. defend any such action.

or defense of any such action or claim is undertaken by the. commission, the licenses shall furnish all. reasonable assistance in effecting a settlement or asserting a defense.

Neither this agreement nor any interest therein nor. claim.

2.thereunder =ay be assigned or transferred without the approval of l

the Commission.

I ARTICLE V The parties agree that they.will. enter inte appropri.te amend =ents.of this agreement to the extent that such a=endments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders i

i of the Commission.

ARTICLE VI The licensee agrees to pay to the Com=ission such fees as are established by the Commission pursuant to regulations or orders of the Commission.

ARTICLE VII The term of this agreement shall commence as of the date and time-specified in Item 6 of the Attachment and shall tar =inate.at the c1=e.cf. expiration of that license specified in Ice: 3 of the Attachment,.which is.che.last to. expir e; provided that, except as may otherwise be provided in applicable regulations or orders of the Co==ission, the ter= of.this agree =ent shall not. car =inate until all the radioactive =aterial has been re=oved. fro =.che location and transportation of the radioactive caterial from the location has ended as Ter=1 nation of the term of this defined in subparagraph 5(b), Article I.

agreement shall not af fect any obligation of the licensee or any obligation of the Co==1ssion under this agreement with respect to any nuclear incident occurring during the term of this agreement.

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ARTICLE VIII 1.

If the licensee fails to pay assessed deferred premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and to recover the amount of such premiums from the licensee.

I 2.

The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the retrospective premium by the insurance pools, that they will not pay the assessment. Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings. Subsequent submission of financial statements by such licensees may be requested by the Commission, as required.

3.

If premiums are paid by the Commission as provided in paragraph 1, payment by the Commission shall create a lien in the amount paid in favor of the United States upon all property and rights to property, whether real or personal, belonging to such licensee. The lien shall arise at the time payment is made by the Commission and shall continue until the liability for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable. The Commission will issue a certificate of release of any such lien if it finds that the liability for the amount has been fully satisfied or has become legally uneforceable.

4.

If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days. 'The Commission may take any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to, termination of the operating license, i

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UNITED STATES NUCLEAR REGULATORY COPetISSION ATTACHMENT Indemnity Agreement No. B-94 Item 1 - Licensee Washington Public Power Supply System Address P. O. Box 968 3000 George Washington Way Richland, Washington 99352 Item 2 - Amount of financial protection a.

$1,000,000.00 I

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With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (i) reduced to the extent that any payment made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachment reduces the aggregate amount of such insurance policies below the amount specified in Item 2a and (ii) restored to the extent that, following such reduction, the aggregate amount of such insurance policies is reinstated.

Item 3 - License number or numbers SNM 1890 Item 4 - Location All of the premises including the land and all buildings and structures of Washington Public Power Supply System's Nuclear Project No. 2 (WNP-2) located between and adjacent to WNP-1 and WNP-4 and shown as being within the dashed lines (-----)

on American Nuclear Insurers Drawing dated July 24, 1982, a copy of which is attached hereto and made a part hereof. The site also includes the Benton Switching Station and the entire intake system and discharge line.

The WNP-2 facility is located on a site consisting of approximately 1,089 acres of the Department of Energy's Hanford Reservation approximately eight miles north of the city of Richland in Benton County, Washington.

l Iten 5 - Insurance Policy No.(s)

Nuclear Energy Liability Policy (Facility Form) No. NF-270 issued by the Nuclear Energy Liability Property Insurance Association.

Item 6 - The indemnity agreement designated above, of which this

-4 Attac nt is a part, is effective as of 12:01 a.m. on the D day of m A 1982.

l FOR THE UNITED STATES NUCLEAR REGULATORY COM4ISSION hS lY Jerome Saltzman, Assistant Director State and Licensee jldlations Office of State Programs FOR Washington Public Power Supply System BY Mmk O

Dated at Bethesda, Maryland the

,qf&dayof 1982.

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