ML20031G833

Forwards Indemnity Agreement B-90 & Nuclear Energy Liability Insurance Policy for Susquehanna

ML20031G833
Person / Time
Site:	Susquehanna, 07002937
Issue date:	09/22/1981
From:	Curtis N PENNSYLVANIA POWER & LIGHT CO.
To:	Page R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
19708, ER-100450, PLA-934, NUDOCS 8110260075
Download: ML20031G833 (31)

Text

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@ Pennsylvania Power & Light Company DDR Two North Ninth Street

• Allentown. PA 18101 + 215 I 7705151 I

Retura to D.Q.6 AMER

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• bb Norman W. Curtis Vice President-Engineering & Construction-Nuclear 215 / 770-5381 cc g

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September 22, 1981 6

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Mr. R. G. Page, Chief N'4Lauss Uranium Fuel Licensing Branch

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SUSQUEllANNA STE AM ELECTRIC STATION DOCKET No. 70-2937 INDEMNITY AGREEMENT No. B-90 AND

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NUCLEAR ENERGY LIABILITY INSURANCE POLICY V

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Attached is a signed copy of Indemnity Agreement No. B-90 as request'ed in your Septemter 10, 1981, letter. Also attached are light (8) copies of thd. Nuclear y

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Energy Liability Insurance Policy for Susquehanna.

.If you have any questions regarding these documents, please contact W. E, Barberich (215-770-5833).

Very truly yours, C

N. V. Curtin Vice President-Engineering & Construction-Nuclear j

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Docket No. 70-2937 Indemnity Agreement No. Ji-90 This Indemnity Agreement No. B 90 is entered into by and between PENNSYLVANIA POWER AND LIGHT COMPANY ALLEGHENY ELECTRIC COOPERATIVE, IhC.

(hereinaf ter ref erred to as the " licensee") and the United States Nuclear degulatory Commission (hereinaf ter referred to as the "Cormission") 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.

2.

Except where otherwise specifically provided, " amount of finan-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 death, or loss of or damage to property, or loss of use of property, arising out of or resulting from the radioictive, coxic, l

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, discase, or t

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arising out of or resulting from the radioactive, toxic, xplosive, or other hazardous properties of 1.

The radioactive material discharged or dispersed from the location over a period of days, weeks, months or longer and also arising out of such properties of other material defined as "the radfsactive material" in any other agreement or agreements entered into by the Commission under subsection 170c or k of the Act and so discharged or dispersed from "the location" as defined in any such other agreement, or

11. The radioactive material in the ceurse of transportation 1

and also arising out of such properties of other material defined in any other agreement entered into by the Commission pursuant to subsection 170c or k of the Act as "the radio-active material" and which is in the course of transportation shall be deemed to be a common occurrence. A common occurrence shall be deemed to constitute a single nuclear incident.

4.

" Extraordinary 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 handling 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 conveyance for any purpose other than the continuation of such trans-portation to the location or temporary storage incidental thereto; (b) The transportation of the radioactive material from the loca-tion shall be deemed to end when the radioactive material is removed from the transporting conveyance for any purpose other than the con-tinuance of transpot;ation or temporary storage incidental thereto; (c) "In the course of transportation" as used in this agreement shall not include transportation of the radioactive material to the J

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location if the =aterial is also "in the course of transportarion" from any other " location" as defined in any other agreement encared into by the Co==ission pursuant to subsection 170c or,k of the Act.

I 6.

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

7.

"Public liability" =eans any legal liability arising out of or resulting fro = a nuclear incident, except (1) clai=s under Stata. or Federal Work =en's Co=pensation Acts of a=ployees of persons indemni-fied who are e= ployed (a) at the location or, if the nuclear incident 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 =aterial; (2) claims arising out of an act of war; and (3) claims for loss of, or damage to, or loss of use of (a) property which is located at the location and used in connection with the licensee's possession, use, or trans-fer of the radioactive =aterial, and (b) if the nuclear incident occurs in the course of transportation of the radioactive =aterial, the transporting vehicle, containers used in such transportation, and the radioactive material.

8.

"The location" =eans the location described in Ite 4 of the Attachment hereto.

9.

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

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

10.

" United States" when used in a geographical sense includes all Territories and possessions of the United States, the Canal Zone and Puerto Rico.

ARTICLE II 1.

At all ti=es during the ter= of the license or licenses desig-nated in Ite= 3 of the Attach =ent hereto, the licensee will maintain financial protection in the a=ount specified in Ite= 1 of the Attach-

=ent and in the for= of the nuclear energy liability insurance policy

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< If more than ono, license is designated designated in the Attachment.

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

suspension or revo-expiration, termination =odification, amendment, cation of any license or licenses designated in Item 3.of the Attach-ment, maintain such financial protection in effect until'all the. radio-active material has been removed from the location and ~ transportation of the radioactive material from the location has ended as. defined. in subparagraph 5(b) Article I, or until the Co= mission authorizes. the The termination or the modification of such financial protectson-Co==ission will not unreasonably withhold such authorization.

In the event of any payment by the insurer or insurers under a 2.policy or polities spec:fied in Item 5 of the Attachment hereco.which reduces the aggregate li=1C of such policy or policiea below the a=ount of financial protection, the licensee will pro =ptly apply to. his insurers 2a of the Attach =ent.

for reinstate =ent of the amount specified in Ice:

ref erence to paragraph b of Ice = 2) and will =aka all reasonable (without In the event that.the licensee has efforts to obtain such reinstate =ent.

obtained reinstatement of such a=ount within ninety days after the not date of such reduction, and in the. absence of good cause shown.Io cna cor.trary, the Co==1ssion =ay issue an order requiring tha.licensae.tc furnish financial protection for such a= cunt in another form.

of the Any obligations of the licensee under subsection 53a(8) 3 to indemnify the United States and the Co==1ssion trc= public Att liability, together with any public liability satisited by the in-surers under the policy or policies designated in the Attach =Ent in the aggregate exceed tha assunt of isnanc:41 hereto, shall not including the reason-protettien with respect to any nuclear incident, and defending suits able costs of in/estigating and settling clat:4 for da= age.

Cuzzence to which thia With respect to any extraordinary nuclear o:

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applies, the Cc==ias en, and the 1:censee on behali.of 2tself agreement and other persons indemnified, insofar as their interests appear, ea.h agree to waive of the cla1= ant or (a) any issue or defense as to the conduct i;=1ted to tault of persons indernt::ed, including, but not i

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5-(1) negligence; (2) contributory negligence; (3) assumption of the risk;

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

As used herein, " conduct of the claimant" includes conduct of persons through whom the claimsnt derives his cause of action; (b) any issue or defense as to charitable or governmental i=munity; (c) any issue or defense based on any statute of limitations if suit is instituted within three years frem 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 af ter the date of the nuclear incident.

The waiver of any such issue or daf ense shall be eff ective regardless of whether such issue or defense may otherwise be dee=ed jurisdictional or relating to an elenent 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 damages; (b) shall not apply to injury or damage to a clai= ant or to a claimant's property which is intentionally sustained by the clai= ant 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 si /* 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: Previded, however, That with the respect to an extraordinary nuclear occurrence occurring at faci.lity, a claimant who is employed at the facility in connection

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> with the construction of a nuclear reactor with respect to which no operating license has been issued by the Atomic Energy Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

the claimant is employed exclusively in connection (1) with the construction of a nuclear reactor, including all related equipment and '.nstallations at the facility, and (2) no operating ifcense has been issued by the NRC with respect to the nuclear reactor, and the claimant is not employed in connection with the (3) possession, storage, use or transfer of nuclear caterial at the facility.

(d) shall not apply to any claim for punitive or exemplary damages, provided, with respect to any. claim for. wrongful death under any State' law which provides for damages only punitive in this exclusion does not apply to the extent that the o m. "

2cs sustained actual damages, ceasured by the pecuniary claim.u:

injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law; shall be effective 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-tection afforded under (1) the limit of liaoility provisions under subsection 170e of the Atomic Energy Act of 1954, as amended, and

'2) the terms of chis 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 6.apply only with respect to nuclear incidents occurring during the term of this agreement.

Upon the expiration or revocation of any license designated 7.in Item 3 of the Attachment, the Commission will enter into an 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 the amount of financial protection under applicable Commission regulations and orders.

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8.

With respect to any common occurrence:

(a) if the sum of the limit of liability of any Nuclear Energy Liability Property Insurance Associat7 n 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 Insurance Association exceeds $124,000',000, the amount of financial protection specified in Itsm 2a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $124,000,000 as the limit of liability of the Nuclear Energy Liability Property Insurance Association policy designated in Item 5 of the Attachment bears to the sum of the ILnits 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 1 Lait of liability of the Mutual Atomic Energy Liability Underwriters 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 Mutual Atomic Energy Liability Underwriters; (c)

If any of the other applicable agreements is with a person who has furnished financial protection in a ' form other than a nuclear encray liability insurance policy (facility form) issued by Nuclear Energy Liability Property Insurance Association or Mutual Atomic Energy Liability Underwriters, an?. 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 ? 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 c4her 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 "conson 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.

The obligations of the licensee u der this Article shall not be 9.af fected by any failure or def ault on the part of the Cocmission 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 inde=nified other than the licensee, shall_ not relieve the

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licensee of any.of his obligations het eunder.

ARTICLE III 1.

-T1.e Co= mission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest nay appear, from public liability.

2.

With respect to damage 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 bcen 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 indemnified 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 macerisi, the transporting vehicles and containers

' used in cuch transportation; l-(d) The radioactive material.

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3.

The Coumission agrees to indemnify and hold harmless the licensee and other persons inde=nified as their interest =ay 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 arount of financial protection.

(b) With respect to a common occurrence, 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 to such reason-able costs described in paragraph 3 of this Article, as in the aggregate exceed whichever the following is lower:

(1) Tas 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 Cc= mission 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 co= mon 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 tne licensee to fulfill its obligations under this agreement. Bankruptcy or insolsancy 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 oigations hereunder.

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ARTICLE IV When the Commission deter =ines that the United States will 1.probably be required to make. indemnity pay =ents under the. provisions.

the Cc==ission shall. have the right. co. collaborate.

of this agres=ent, with the licasses and.other persons.inde=nified in the settle = ant.and.

h ih (a) to.rsquire the. prior

. defense of any claL= and shall. have t e-r g t.

approval of the Co==ission for. the settle =ent or pay =ent. of. any. claim or action assarted against the licenses or. other person.~1nde=nified for putlir. liability or damsge.co. property of persons. legally liable for the nuclear incidsnt which. claim or action.the. licensee.or.the Co==1ssion =ay be required to inde=nify under this agrce=ent;.and, (b) to appear through the Attorney General of the United. States.on behalf of the licensee or other person indemnified, take charge of s

If the.aettle=ent such action and settle.or. defend any such action.

or defense of any such action or clai= is undertaken by.che Cc==ission, the licensee shall furnish all reasonable assistance in effecting a settle =ent or asserting a defense.

Neither this agwee=ent nor any interest therein nor cla1=.

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

ARTICLE V The parties agree that they will. enter into appropriate a=end=ents.of this agreement to the extent that such a=end=ents are required pursuant.co the Ato=ic Energy Act of 1954, as amended, or licenses, regulations or orders of the Coccission.

ARTICLE V1 The licensee agrees to pay to the Co==1ssion.such fees as are. established by the Co==1ssion pursuant to regulations or orders of the Co==ission.

ARTICLE VII The ter= of this agreement shall co==ence as of the date and t1=e specified in Ite= 6 of the Attachment and shall terminate.at the time.of. expiration of to. expire; license specified in Ita= 3 of the Attachment,. which is. the. last that except as may otherwise be provided in applicable regulations provided that, or orders of the Cc==ission, the ter= vf.this agree =ent shall not. terminate until all the radioactive material has been recoved from the location and transportataan of the radioactive caterial from the location has ended as Ter=1 nation of the ter= of this defined in subparagraph 5(b), Article I.

affect any obligation of the licensee or any obligation agree =ent shall not of the Cc==1ss:on under this agree =ent with respect to any nuclear incident occurring during the term of this agree =ent.

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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.

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 arsessment. Such financial a

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 Ccmmission 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.

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• UNITED STATES NUCLEAR REGULATORY COMMISSION ATTACHMENT Indemnity Agreement No. B-90 Item 1 - Licensee Pennsylvania Power and Light Company Allegheny Electric Cooperative, Inc.

Address 2 North Ninth St<

Allentown, PA 18101 Item 2 - Amount of Financial Protection a.

$1,000,000 b.

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, follcwing such reduction, the aggregate amount of such insurance policies is reinstated.

Item 3 -

License number or numbers SNM-1878 Item 4 -

Location All of the premises including the land and all buildings and structures of Pennsylvania Power and Light Company's Susquehanna Steam Electric Station shown as being within the heavy black lines en a reduced copy of Pennsylvania Power and Light Company's drawing number E-105181-1 dated September 22, 1980, a copy of which is attached hereto and made a part hereof.

The site also includes the river intake structure and associated piping and the Unit 2 switchyard, said switchyard being located approximately 500 feet south of the Unit 2 cosling tower.

The Susquehanna Steam Electric Station is located on the west bank of the Susquehanna River approximately four (4) miles south of Shickshinny and five (5) miles northeast of Berwick in Salem Township, Luzerne County, Pennsylvania.

Item 5 -

Insurance Policy No(s).

Nuclear Energy Liability Policy (Facility Form) No. NF-262 issued by the Nuclear Energy Liability Property Insurance Association.

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The indemnity agreement designated above, of which this Attachment is a part, is effective as of 12:01 a.m., on the /0 day of '"/ jk h, 1981.

FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION hb Y'.

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f ^ Nu lear Energy LI:bility Insur:nca NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDATORY ENDORSEMENT 1 (Facility Form) It is agreed that: I. In Insuring Agreement III, " DEFINITIONS" A. The first sentence of the definition of " nuclear facility" is amended to read: ~ " nuclear facility" means "the facilit9" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwri ters. B. The definition of " indemnified nuclear facility" is replaced by the following: " indemnified nuclear facility" rreans (1) "the facility" as defined in any Nuclear ,Enprgy Liability Policy (Facility Form) issued by Nuclear Energy Liability In-surance Association or by Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory therof, with respect to any acti-vities or operations conducted thereat; II. Insuring Agreement IV is replaced by the following: IV APPLICATION OF POLICY This policy applies only to bodily in-jury or property damage (1) which is caused during the policy period by the nuclear energy hazard and (2) which is dis-covered and for which written claim is made against the insured, not later than ten years after the end of the policy period. III. Condition 2 is replaced by the following: 2 INSPECTION; SUSPENSION The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's bJoks and records a.; far as they relate to the subject of this insurance. Neither the right to make inspections and 19708 NE-48 Page of 4 (over)

^ 4-l i i examinations nor the making thereof nor any advice or report resulting therefrom shall constitute an under-taking on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compli-ance with any law, rule or regulation. If a representative of th'e companies discovers a con-dition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of non-compli-ance with such request, a representative of the com-panies may, by notice to the named insured, to any other person or organization considered by the com-panies to be responsible for the continuance of such dangerous condition, and to the United States Nuclear Regulatory Commission, suspend the insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected. IV. Condition 4 is replaced by the following: 4 LIMITATION OF LIABILITY; COMMON OCCURRENCE Any occur-rence or series of occurrences resulting in bodily in- , jury or property damage arising out of the radioactive, toxic, explosive or other hazardous propertie~s of (a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of the properties of other nuclear material so dis-charged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association, tion, or (b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other NE-48 Page of 4

f. 0 source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by fluclear Energy Liability Insurance Associ-

ation, shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.

With respect to such bodily injury and property damage (1) the total aggregate liability of the members of the Nuclear Energy Liability Insurance Association under all fluc. lear Energy Lia- ~ bility Policies (Facility Form), including this policy, appli-cable to such ccmmon occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $96,875,000; (2) the total liability cf the companies under this policy shall not exceed that proportion of the total, ag,gregate liability of the members of fluclear Energy Liability Insurance Association, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members, the limit of liability of each such policy being as determined by Condition 3 thereof. The provisions of this condition shall not operate to increase the limit of the companies' liability under this policy. V. The second paragraph of Condition 12, "0THER INSURAflCE", is amended to read: If the insured has other valid and collectible insurance ~ (other than such concurrent insurance or any other nuclear energy liability insurance issued by fluclear Energy Lia-bility Insurance Association or liutual Atomic Energy Lia-bility Underwriters to any person or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance. NE-48 Page of 4 (Over)

N ^ VI. Paragraph (c) of Condition 16, "COMPAtlY REPRESEtlTATI0il", is amended to read: (c) fluclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy to be given to the companies may be given to such agent, at its office at The Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut 06032, with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies. of E',fe{tje ge, January 1, 1981 To form a part of Pol.cy No flf-262 g, 12 ol A.M. Standard Time issued to Pennsylvania Power & Light Company and Allegheny Electric Cooperative. Inc. February 20, 1981 For the su scribing cor panies g, g,, ~' By I ' General Manager Endorsement No Countersigned by. Ef.- 48 Page of 4 (1/1/ 77)

( s Nu: lear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Amendnent of Condition 4 Endorsement It is agreed that with respect to bodily injury or property damage caused on or after the effective date of this endorsement by the nuclear energy hazard, the figure $96,875,000 stated in. Condition 4 of the policy is amended to read $124,000,000. Effective Date of January I, 1981 NF-262 this Endorsement To form a part of Policy No issued to February 20, 1981 For the su cribing co panies Date of issue By _ General Manager ~~ 6 Endorsement No Countersigned by NE-43F(1/1/79)

Nucirr En:rgy Liability Insurc.nca NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) of the !4AlVER OF DEF NSES ENDORSEMENT (NE-33a) with respect to an extra-ordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the corstruction of a nuclear reactor with respect to which no operating licer.se has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if: (1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related eqt.ipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3) the claimant is not employed in connection with the possession, storags, use or transfer of nuclear material at the facility. Ef fective Date of January 1* 1981 NF-262 this Endorsement To form a part of Policy No 12:01 A.M. Standard Time Pennsylvania Power & Licht _ Company _and Allegheny Electric Cnoperative, Inc. lssued to february 20, 1981 For the su scribing co panies Date of issue By General Manager nd tsement No Countersigned by NE-39a (1/1/77)

1 f 1 Nuclear En:rgy LI:bility inshr:nca. NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES END0RSEMENT = (Extraordinary Nuclear Occurrence) The named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:

1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the. course of the con-struction, possession, or operation of the facility, or (b) arises out of or results _.from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:

(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) 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 bodily injury or property damage and the cause thereof, but in no event more than twenty 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.

2. The waivers set forth in paragraph 1. above do not apply to (a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of end in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or re-quired to be provided under any workmen's compensation or occupational disease law; (c) any-claim for punitive or exemplary 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.

NE-33a (over)

) e

3. The waivers set forth in paragraph 1. above shall be effective only with respect J

to bodily injury or property damage to which the policy applies under its terms other.than this endorsement; provided, however, that with respect to bodily in-jury or property damage resulting from an extraordinary nuclear occurrence, In-suring Agreement IV, " Application of policy", shal not c.perate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty years after the date of the extraordinary nuclear o:currence. Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial pro-tection required of the named insured; (b) the agreement of indemnification between the named ' insured and the the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954, as amended; and (c) the limit of liability provisions of Subsection 170e. of the Atomic Energy Act of 1954, as amended. Such waivers shall not preclude a defense based upon the failure of the claim-ant to take reasonable steps to mitigate damages.

4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.

5. As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commitsion has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended. " financial protection" and " nuclear incident" have the meuings given them in the Atomic Energy Act of 1954, as amended. ~ " claimant" means the person or organizaticn a'ctually sustaining the bodily injury or property damage and also includes his assfgnees, legal reprrsent-t atives and other persons or organizatior.s entitled to bring an action for damages on account of such injury or damage, f o at January 1, 1981 pmen To form a part of Policy No 12:o1 A.M. Standard Time pennsylvania powqrdLjSht_COLnp.a_ny and Allegheny Electric Cooperative,. Inc. Issued to n Date of Issue Februr.cy 20, 1981 For the su scribing co anies ~ By-General Manager.' 4 Endorsement No Countersigned by NE-33a (1/1/77)

NuclIar En:rgy Liability Insur nca (, NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDMENT OF DEFINITIONS OF " Nuclear Energy Hazard" and " Insured Shipment" (Indemnified Nuclear Facility) It is agreed that: I. In Insuring Agreement III, " DEFINITIONS" A. solely with respect to an " insured shipment" to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission, Subdivision (2) of the definition of " nuclear energy hazard" is amended to read: (2) the nuclear material is in an insured ship-ment which is away from any other nuclear facility and is in the course of transport-ation, including the handling and temporary storage incidental thereto, within (a) the territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or (b) international waters or airspace, pro-vided that the nuclear material is in the course of transportation between two points located within the terri-torial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except a deviation in the course cf said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency. B. the definition of " insured shipment" is replaced with the following; " insured shipment" means a shipment of source material, special nuclear materiel, spent fuel or waste, herein called " material", (1) to the facility from any loca-tion except an indemnified nuclear facility, but only 1 if the transportation of the material is not by prede-l l NE-45 (over)

termination to be interrupted by removal of the material from a transperting conveyance for any purpose other than the continuatior, of its trans-portation, or (2) froni the facility to any other location, but only until the raaterial is removed from a transporting conveyance for any purpose other than the continuation of its transportation. ~ II. As used herein', " financial protection" has the meaning given it in the Atomic Energy Act of 1954, as amended. i l i 4 i i l. i Ns ((dorN' en't January 1,1981 To form a part of Policy No_DF 262 i m Pennsylvania wer . andar Time

01 A.

ght ompany and Allegheny Electric Cooperative, Inc. ,3,g,, . February 20, 1981 For the su scribing co panies Date of issue _ b f ) By <ff General Manager,s Endorsement No Countersigned by '9 # ' l 3 ., t ;, ->r . ~ ,-+e e r-~- m , e n w m-+ -. -,ew, + -e v e-

{ l Nucirr Errgy Li:bility Insur:nca NUCLEAR ENERGY LIABILITY INSURANCE ASSICIATIZN l INDUSTRY CREDIT RATING PLAN PREMlUM ENDORSEMENT lt is agreed that Condition 1 of the policy is replaced by the following: CONDITION 1. PREh!IUhi (1) Definitions: With reference to the premium for this policy: ~ " advance prcmium", for any calendar year, is the estimated standard premium for that calendar year; " standard premium", for any calendar year, is the premium for that calendar year computed in accordance with the companies' rule, rates, rating plans (other then the Industry Credit Rating Plan), premiums and minimum premiums applicable to this insurance; " reserve premium" means that portion of the standard premium paid to the companies and specifically allocated under the Industry Credit Rating Plan for incurred losses. The amount of the "rescere premium" for this policy for any calendar year during which this policy is in force is the amount designated as such m the Standard 1-remium Endorsement for that calendar year; " industry reserve premium", fur any calendar year,is the sum of the reserve remiums for that calendar year for all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Association and Afutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan; " policy refund ratio", for any calendar year, is the ratio of the named insured's reserve pre-mium for that calendar year to the industry reserve premium for that calendar year; " incurred losses" means the sum of: (1) alllosses and expenses paid by Nuclear Energy Liability Insurance Association and hiu-tual Atomic Energy Liability Underwriters, and (2) all reserves for unpaid losses and expenses as estimated by Nuclear Energy Liability In-surance Association and hlutual Atomic Energy Liability Underwriters because of obligations assumed and the expenses incurred in connection with such obligations by members of Nuclear Eacrgy Liability Insurance Association and hfutual Atomic Energy L'iability Underwriters under all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Association and Afutual Atomic Energy Liability Underwriters and sub-ject to the Industry Credit Rating Plan; "icscrre for refunds", at the eud of any calendar year, is the amount by which (1) the sum of allindustry rescrve premiums for the period from~ January 1,1957 through the end of such calendar year exceeds (2) the total for the same period of (a) allincurred losses, valued as of the next following July 1, and (b) all reserve premium refunds made ander the Industry Credit Rating Plan by members of Nuclear Energy Liability Insurance Association and hfutual Atomic Energy Liability Underwriters; " industry reserve premium refund", for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the indus-try rescrre premium for the calendar year for which the premium refund is being determined to the sum of such amount and the total industry rcscrre gremiums for the next nine calendar years thereafter, provided that the industry reserve pren'ium refund for any calendar year > hall in no event be greater than the industry rescere premium for such calendar year. (2) Payment of Advance and Standard Premiums The named insured shall pay the companies the advance premium stated in the declarations, for the period from the etTective date of this policy through December 31 following. Thereafter, at the beginning of each calender year while this policy is in force, the named insured shall pay the advance premium for such year to the companies. 'Ihc advance premium for cach calendar year shall be stated in the Advance Pre-mium Endorsement for such calendar year issued to the named insured as soon as practicable prior to or after the beginning of such year. ses 97 Past g

( Nucirr En:rgy Liability insur=co NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION As soon as practicable after each December 31 and after the termination of this policy, the standard premium for the preceding calendar year si,all be finally determined and stel in the Standard Premium Endorsement for that calendar > car. If the standard premium so determined exceeds the adsance premium previously paid for such calendar year the named insured shall pay the excess to the companies; if less, the companiu shall returr: te De named insured the excess portica paid by such msured. The named insured shall maintain records of the information necessary for premium computa-tion and shall send copies of such records to the companies as directed,. at the end of each cal-endar year, at the end of the policy period and at such other times during the policy period as the company may direct. (3) Use of Reserve Premiums All reserve premiums pand or payable for this policy may be used by the members of Nuclear Energy Liability Insurance Association to discharge their obligations with respect to incurred losses whether such losses are incurred under this policy or onder any other policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. (4) Reserve Premium Refunds A ponion of the reserve premium for this policy for the first cal-endar year of any group of ten consecutive calendar years shall be returnable to the named in-sured provided there is a reserve for refunds at the end of the tenth calendar year. (5) Computation of Reserve Premium Refunds The reserve premium refund due the name inst' red for any calendar year shall be determined by multiplying any industry reserve premium refund for such calendar year by the policy refund ratio for such calendar y.ar. The reserve pre-mium refund for any calendar year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter. (6) Final Premium The final premium for this policy shall be the sum of the standard premiums for each calendar year, or portion thereof, during which this policy remains in force less the st.m of all refunds of reserve premiums due the named insured under the provisions of this Condition 1. (7) Reserve Premium Refund Agreement Each member of Nuclear Energy Liability Insurance Association subscribing this policy for any calendar year, or portion thereof, thereby agrees for itself, severally and not jointly, and m the respective proportion of its liability assumcd under this policy for that calendar year, to return to the named insured that portion of any reserve premium refund due the named insured for that calendar year, determined in accord-ance with the provisions of this Condition 1. Effective Date of this Endorsement January 1, 1981 NF-262 To form a part of Policy No. 12:01 A.M. Standard Time Pennsylvania Power & Light Company and Allegheny Electric Cooperative, Inc. issued to Date of Issuc February 20, 1981 For the su ribing com ies lly Vl/ General Afanager Endorsement No. Countersigned by .ir....

f ] Nucizr En:rgy Li::bility Insuranca NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM EtlDORSEMENT CALENDAR YEAR 1981 ~ It is agreed that Item 5 of the Declarations " Advance Premium" is amended to read: ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $ 100.00 STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: 67.00 Effective Date of January 1, 1981 NF~262 this Endorsement To form a part of Policy No 12.01 A.M. Standard Time _Pennsylvan_i_a Power & Light Company and Allegheny Electric Cooperative, Inc. _ issued to Date of issue February _20, 1981 For the su scribing co panies By _l) V General Manager-Endorsement No ~ Countersigned by NE-41

r NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION 127 John Street, New York, New York 10038 Nuclear Energy Liabilay Pobey No. NF--- 262 (Facitary form) DECLARATIO NS cm i. N.,ned insu,a Pennsylvania Power & Light Company and Allegheny Electric Cooperative, Inc.

Addres, Two North Ninth Street, Allentown, Pennsylvania 18101 (No.

Street Town or City Sta te) Item 2. Policy Pericd Beginning at 12.o1 A.M. on the ISI January 81 day of 3 ,,a,,,,;,g, &,4 the effective date of the cance!ation or terminanon of thn policy. standard tse at the address of the named insured as stated herein. Item 3. Description of the faciity: All of the premises including the land and all bu1ldings and structures g,,,,, of Fennsylvania Power 5 Light Lompany's busquenanna dLMm t.lectric dLdLlon snown as being within the heavy black lines on a reduced copy of Pennsylvania Power & Light Company Drawing No. E-105181-1 dated September 22, 1980, a copy of whTc T ~ is attached hereto and made a part hereof. The site also includes the river intake structure and associated piping and the Unit Z switchyard, said switchyard being located approximately 500 feet south of the Unit 2 Coolina Tower. The Susquehanna 5 team Electric Station is located on the west bank of the Susquehanna River approximately 4 miles south of Shickshinny and 5 miles north-east of Berwick in Salem lownship, Luzerne County, Pennsylvania. Power Reactor This is to certify that this is a true copy of the Tm original Declaraticas being made part of the Nuclear Energy Liability Policy (Facility Form) hav mg the number designated hercon and including Endorsements numbered 1 through 7. No insurance is afforded hereunder. The ocer. tor of the tacilar i, Pennsylvania Power & Light Company and Allegheny Electric Coopera-nem 4 The hm.: of the comranin taba,, 1 00,000.00 ,,3,,,,,,3 3, s,,,,,,,,,3 ;, pon,, 3,,,,,,,,,,,,,,,3,,,,, 100.00 riem 3. M.n<e r,emium s nem c. Thne dur.r.i.ons ana ihe schedures forrnian a rart hereof sive e con 'lete d rire., of the fa ' - taiof ar >> /t/Ielates to > nucte= r ene,n b.und. eneri as noicd No exceptions N /A if tf$hWF _N >1... .:i n,, . pr der @i siNy Ut.hrwrit.n;; I imer-.." .dr i .x February 20, 1981 Date of Ince - ,n c,yn,,,,a s, - ' Authorned Rectnentatne N dent Encery Labany Pohcv (racdir, Form) 2/In? ($cco3d Re,o.c.n)

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4 ~ ' ~ Nue: car Energy Liability Insuranco NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHAfiGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT Calendar Year 1981 i. It is agreed that with respect to bodily injury or property damage caused, during the effective period of this endorsement, by the nuclear energy hazard: a. The word " companies" wherever ured in the policy means the subscribing companies listed below. b. The policy shall be binding on such companies only, c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury or property damage as designated below. 2. It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the close of December 31, 1981, or to the time of of the termination or canc,ellation of the policy, if sooner.t a ee spBsCk:B!s". C]"PA ;]iS P.8)F.5.(I_Ci Of INj aad so ety to The Is1 Faras*9 ton A,e., #4 art re. d CT Of,1% 9.9 10 % 9._,_ Aataa Cateal tf r q Ae t e g ]mrame (gepaq, % [Im st., Martfors, CT 06115 2 644131 -s -a A* filiates M Ins 2reate Co., Allendale Park, P.O. Boa 7s03, Jo*a s toa, et 02919 .24N64 L c) 3 - ". [h Allia,a Imracce Coaga r. 641s enhatre sled, Los Arreles, CA 99M4 1.324076 'a a Alhtste imra%e (o Alhtate Flata hth - GI, h?rt ot> root. IL 60062

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Acer,can wore Assurene (o, 102 wa tsen L a, he. York, NT 1000s .86512s ~] c'- Aner n aa *Ic toris t s Imrav e Co., ' oa9 Grr.e. !L f,0049 .413774 ,7 SitetaM Obalty Corporat toa, u'0-ilta St, noc h Isles, IL 61201 411774 -t J (en t em a l f ebreance Co-, A t lant u fialist e g, 41 =411 st, Ne. f ace, %f ICS .248264 i L. cen. e r c ia l w,oa res,ca i e to, Ne searoa st, sestoa, *A 02tes 3.310i90 a (2ceett ot ladencity (FSaar, tre. 9 f ar* Srrian es, f amagtoa, ci C6012 413774 Con t 1 rea t a l Crnalt, Co., GA Plata, Chicap, it 6:6M 4 137737 Coat taeat a l !mraai e C3,Tae, 80 maidea t a., Ne. Yor k, %v 1031R

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's.e et c a r a ..r e t y to, n.* li tam s t., %e. vora, 4r 10l H .41)'74 c ,'~ tee so- # e.e 4 osat t, (nes,112 ust.asni.poa st., slowa n*, it 61701 827s47 r 'f averr h4 [mraer.e (.'% e y, ' 0 tM e sE %,Los Armeleg, 4 $731 ,827s47 1, 'ra.o 'en lade-e t t y wea r, 'me, One fe,e r Ware, Mat t f ord, if 0611s 11 1 sit h O ua.,,t se ves + oel m am wraat, Co, me 100 tirt st,patt,re, m 212c2 t o. c 7 w

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/ -..es...e a v v e u. e a. N. I m, *cer i ew,, % m 2 vnn . c m te g am e u, i n.. a r %,a, , oamr,, it ei 9e i. 24 nyi ..i. u ,[ / y ,{.,N .,, t,a Ettecthe Date of sa'" m this Endorsement January I, 1981 To form a part of Policy No Uf"262 1701 A M. St,andard Tirne issuf d to Pennsylvania Power & Light Company and Allegheny. Electric Cooperative, Inc. D.ue of issue fiarch 12, 1981 For the su scribing ce panies By. G_e era _6per n Endor:,ement No _ d Counte: signed by [ yPNt01 A HmqM 0F FFNMLVW.'1 T ( f.,o,. 6

Nzclear Energy LI:bility Insuranca NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDMENT OF DEFINITION OF CONDITION 2 " INSPECTION: SUSPENSION' AND " INSURED SHIPMENT" (Indemnified Nuclear Facility) It is agreed that: 1.) Condition 2 " INSPECTION; SUSPENSION" is replaced by the following: 2 INSPECTION, SUSPENSION The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of noncompliance with such request, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuation of ',uch dangerous condition, and to the United States Nuclear Regulatory Connission, suspend this insurance with respect to the named insured and such other person or organization effective-12:00 midnight of the next business day of such Commission follow-ing the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected. Neither the right to make such inspections and examinations nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or varrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation. In consideration of the issuance or continuation of thi., policy, the insurel agrees that neither the companies nor any persons or organizations making such inspections ur examinations on their behalf shall be liable with respect to injury to or destruction of property at the facility, or any consequential loss or expense resulting therefrom, or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers. NE-51 Page 1 of 2 (1/1/81) (over)

2.) The definition of " insured shipment" in Insuring Agreement III, " DEFINITIONS", is replaced by the following: " Insured shipment" means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called "materiaid, (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation. ini3 1-; t,o certify " 1: thin w a'W. u tun crisinal ' i ; ca:'o part Fnco:; e-c nt hwi"~ > 0 CM L ' of the Uualur DJ > I'1 W - ~

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\\ l' ~ ~ J. a.. %un n H. vwe n.ma W "-.'. Amervsn Guaw imunu i Ef fective Date of this Endorsement June 1, 1981 NF-262 To form a part of Policy No 12.01 A.M. Standard Time issued to Pennsylvania Power & Liqht Company and Allegheny Electric Cooperative, Inc. l Date of issue May 19. 1981 Forit3 su s,:ribing co panies //f / By g[ g@g Maneger l' e i j Endorsement No 9 y"m~ tn t, M GCUl> countersigned by e tweaa- '"* NE-51 Page 2 of 2 (1/1/81) l

,o l Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INFORMATION TO BE PROVIDED TO THE COMMONWEALTH OF PENNSYLVANIA 0F SUSPENSION OR CANCELATION It is agreed that if the companies suspend the insuranca or cancel the policy they shall at the time they provide notice thereof to the United States t'uclear Regulatory Commission, advise the office of the Commonwealth of Pennsylvania designated below of the action they have taken. Such information may be provided in writing or orally, and if done orally will be confirmed promptly in writing by the companies. Comonwealth Office: The Office of the Director Bureau of Radiation Protection Pennsylvania Dept. of Environmental Resources P.O. Box 2063 Harrisburg, Pennsylvania 17120 Tel. (717) 787-2480 This is to certify that this is a true copy of the original Endorce. cnt havin;; the endor cac.it nut.bor and being cado part e of the kclear Energy Liability I'olicy (Facility Form) as des-ignated hereen. No Insurance 13 afforded hereunder. r J/ J M L Qa,ar c b v:< ne,m.,ai;,uig Amers. Nurhr trarers EsTd'ok.*.n'i June 1, 1981 NF-262 m g,,, 12.01 A M. Stanqara Tme essvec to Pennsylvania Power & Light Company and Allegheny Electric Cooperative, Inc, Dais et issue May 21, 1981 Forthesu icneing co. ca es UCC b)A A// \\ Er F

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