ML20037B003

Advises That AEC Has Corrected Item 4 of Encl Indemnity Agreement,Deleting Quotation Marks Per Request.Responds to Questions Raised in

ML20037B003
Person / Time
Site:	Dresden
Issue date:	05/04/1962
From:	Price E US ATOMIC ENERGY COMMISSION (AEC)
To:	Joslin M COMMONWEALTH EDISON CO.
References
NUDOCS 8008280709
Download: ML20037B003 (9)

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at:ms M AY 4 1962 Docket No. 50-10 j

1 Commomunalth~ Edison Company 72 West Adame Streetu.

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Attention: Mr. Murray Joelia Vice President

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t centlemen Reference is needs to a-letter dated March 16, 1962 from Mr.

l Malcom A. Tait and to a meeting between representatives of Commenmealth Edison and of this office on March 15, 1962.

l Enclosed are two copias of the indemnity agreement sent to you l

with our letter of Decenner 14, 1961.

In accordance with your l

suggestion, as have corrected Item 4 of the Attachment to de-

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lete the quotation marks that were placed therein. We are also

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enclosing A=ead===e No.1 to your formal indommity agreement.

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As we pointed out in our letter of December 14, 1961, the l

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====A===* of 10 CFR Part 140 which implemented a provision of P6blie Law 87-206, effective Septan 6er 6, 1961, would in tura I

necessitate the

====d===t of your formal inda=aity agreement.

A===d= mat No. I serves this purpose.

In our meeting on March 15, we indicated that we would attempt I

to respond to the points raised in your letter of February 8, 4

l 1962. All of thana questions have been discussed by Comnouvealth Edison and the t'a==4msion in the pc?t and our statements below should serve to reiterste the position that we have disclosed to you in our discussions.

1.

Article Y of the agreement obligates the parties to amend the agreement to the extent required by gi\\1ggS future changes in the Atomic Energy Act of 1954,

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c-mMth Edison Company as amended, or licenses, regulations or orders of the Commission. The purpose of this article is to put the licenses and public om motice that should Congress enact legislation which amends the indemonity provisions of the Act er should &

Commission decide that clarifications need to be

,made in the agreement, carresponding====d===*=

- wotnd have to be made in the indesmity agreements.

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Por essaple, A===d===t No. I to your formal in-demnity agreement is the result of an amendment to

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section lla. of the Act and an iglementing amend-meat to 10 CFR Part 140 by the Commission. To delete Article Y might be interpreted by the licenses and the public to mean that no change could be'amde in the im m==8ty agreements even thsegh Congress and

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a the Commission felt that certain ebenges were desir '

able. Therefore, it is our opinion that Article V imast be included in the indemnity agreement and does

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" constitute the firm oommitment intended by the Price 4aderson Act."

2. The second point raised in your letter was in regard to the possible coverage of indemnity under the agree-meat for liability arising in connection with the use of radioactive meterials outside the reactor, such as meterials used for instrument calibration. The in-demaity agra====t does not cover nuclear incidents arising from uses of material other thsa "the radio-active material" as specifically defined in Article 1, Paragraph 8, of the agreement. In this connection,

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you will recall-that in November,1961, the Commission 4

decided not to extend indemnity to users of enriched j.

unirradiated urmaium. The Maston is continuing to t

study b possibility of extension of Price-Anderson coverage for uses other than in reactors in accordance with the permissive wording of the Price-Anderson Act.

Bouever, until such time as the comunission decides to extend indemnity coverage to other than users as presently d. fined in 10 CFR Part 140, we are bound to

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limit the-coverage under indemnity agr

+= to source, special maclear, and byproduct material which (1) is used or to be' used ta,"or is irradiated or to be irradiated i

by the reactor, as~(2) uMeh is produced as a result of the operation of the reactor.

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' M AY 4 1962 Commonwealth Edison Cogeny 3.

The third point of your letter recommended ex-tension of imi==nity to fuel fabricators c.nd We have answered this point in reprocessors.

2. above.

4.

Your last point was in objection to the require-ment that c========1th Edison maintaim $60 million

'Fi= ~ 4=1 protection. as confirm our assurance to you that in the event the =mri-amount of financisi protection is lowered or raised. N ce=-f seion will -=d the inda-nity agreement ac-cordingly.

We hope that this letter and our discussions have served to clarify We would welcome our position on the questions that you raised.

continued discussion of any detail of the indemnity agreement that you might feel requires clarification.

Simcarely yours, Fan.c Eber R. Price, Assistant Director Divissa of Licensing and Regulatias Eber R. Prica Assistant Director Division of Licensing and Regulation Enclosures 1 1.

Formal Indemnity Agreement (2) 2.

A % at No. I to Y=d - ity Agressent No. 3-10 DISTRIBUTIN:

Formal Supplemental Public Document Room P. F. Travelstead, FIN Bill Stewart, OGC Roger Euard

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UNITED STATES ATOMIC ENERGY COMMISSION 5

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WASHINGTON 25. D. C.

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Indemnity B-10 Agreement No.

Docket No. 50-10 is entered into This indemnity agreement B-10 by and between the Co'monwealth Edison Company

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(hereinaf ter referred to as the " licensee") and the United States Atomic Energy Commission (hereinaf ter referred to as the " Commission") pursuant to subsection 170c of the Atomic Energy Act of 1954, as amended (herein-af ter referred to as "the Act").

ARTICLE I

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As used in this agreement,

" Nuclear reactor," " byproduct material," " person," " source mate-1.

rial," 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 financial 2.

protection" means the amount specified in Item 2 a and b, pf the Attachment annexed hereto, as modified by paragraph 6, Article II, with respect to com-mon occurrences.

" Nuclear incident" means any occurrence or series of occurrences

3. (a) 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 radioactive, toxic, explosive, or other hazardous properties of the radioactive material.

Any occurrence or series of occurrences causing bodily injury, (b) sickness, disease ce death, or loss of or damage to property, or loss of use of property, arf sing out of or resulting from the radioactive, toxic, ex-plosive or' other hazardous properties of The radioactive material discharged or dispersed from the location over a period of days, weeks, months or longer and also arising out of such 1.

properties of other material defined as "the radioactive material" in any other agreement or agreements entered into by.the Comission under subsection

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170 e or k of the Act and so discharged or dispersed from "the location" as defined in any such other agreement, or

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UNITED STATES ATCHIC ENERGY COMMISSION

' ATTACHMENT

' Indemnity Agreement No. B-10 l

Item 1 - Licensee e - =1th Edison Company Address 72 West Adams Street a h --a 90, Illinois

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$60,000,000 Item 2 - a.

Amount of financial protection b.

With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be 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.

Item 3 - License number or numbers DFR-2 Item 4 - Location That part of Section Tueaty five (25) lying Southerly of the Illinois River and Westerly of the um.h.h., Rivers sise, that part of the South Eight Eundred (800) feet of the East Five Emmered (500) feet of Section Twenty-six (26); also, thac part of the North Five Meadred (500) feet of the East Five sandred (590) feet of faction Thirty-five (35); also that part of the North Five Bundred (500) feet of Section Thirty-six (36) lying Westerly of the rankak River; all in Towmehip Thirty-four (34) North, Range Eight (8) East of the Third Principal Maridian, Grundy County, 1111acis, occupied by P-=1th Edison Company's Dresdem Nuclear Power Station and enclosed by plant security fence, as out-lined in red on the plat attached hereto, merked Exhibit F

"A" and made a part hereof.

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3.

Paragraph 3 of Article II is amended to read as follows:

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Any obligations of tiie licensee under subsection 53e(8) of the Act to indemnify the United States and the Com-mission from public liability, together with any public liability satisfied by the insurers under the policy or policiec designated in the Attachment hereto, shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident, in-cluding the reasonable costs of investigating and settling claims and defending suits for damage.

4.

The second paragraph of Paragraph 6(c) of Article II is amended to read as follows:

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As used in this paragraph 6, Article II, and subparagraph 4(b), Article III, "other applicable agreements" means each other agreement entered into by the Comission pursuant to subsection 170c of the Act in which agreement the nuclear incident is defined as a "comon occurrence". As used in

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this paragraph 6, Article II, "the obligations of the licensee" means the obligations of the licensee under sub-section 53e(8) of the Act to indemnify the United States and f

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

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suits for damage.

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t FOR-TRE UNITED STATES ATOMIC ENERGY COMMISSION Utr E. inn isnful that

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a Elvisin of Licechg ang geg;g,qq,,

Eber R. Price, Assistant Director Division of Licensing and Regulation f

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Accepted July 20.

, 1962 By /s/ Murrav Joslin Vice-President q

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UNITED STATES ATCMIC ENERGY COMMISSION ATTACHMENI Indemnity Agreement No. B-10 Item 1 - Licensee Commonusalth Edison Company Address 72 West Adams Street Chicago 90, 1111 asis

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$60,000,000 Item 2 - a.

Amount of financial protection b.

Wi S respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be reduced to the 2=

extent that any payment made by the insurer or insurers under a

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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.

L Item 3 - License number or numbers F

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Item 4 - Location g

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E That part of Section Tuonty-five (25) lying Southerly of the Illinois River and Westerly of the raakakaa River; also,

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a that part of the South Eight Emmered (800) feet of the East Five amedred (500) feet of Section Twenty-six (26); ateo, that part of the North Five Meadred (500) feet of the East Five mandred (590) feet of section Thirty-five (35); also that part of the North Five Mundred ($00) feet of Section Thirty-six (36) lying Westerly of the Kanhakaa River; all in Township Thirty-four (34) North, Bange Eight (8) East of the Third Principal Meridian, Grundy County, 1111acis, occupied by - al th Edison Company's Dresden Nuclear power Station and enclosed by plant security fence, as out-

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lined in red on the plat attached hereto, marked Exhibit "A" and made a part bereof.

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'l Item 5 - Insurance Policy No.(s)

Wuclear Energy Liability Policy (Facility EF-43 issued by the Nuclear Emergy Liability Insurance Lorm)iatleeg Nuclear Energy Liability Policy (Facility Form) No.

No soc MF-22 issued by the Estual Atomic Energy Liability Underwriters.

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q Item 6 - The indemnity agreement designated above, of which this Attachment is a part, is effective as of 12:01 a. m., on the 28th day d

of September

. 19 593 and superseded the interim in-dammaity agran===t dated September 28, 1959 between you and the A* d e Energy Commission.

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For the United States Atomic Energy Comnission.

(Signeo By Eber R. Price Wtnt Director Division cf Li:ensing and Regulaticrl For the COMMONJFALTH EDISON CCHPANY e$

(Name of Licensee)

By

/S/ Marrav Joslin Vice President Dated at Germantown, Maryland, the /V day of M'M

, 19y.

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