ML20043G458

Forwards Endorsements 72-78 to Maelu Policy MF-70 & Endorsements 88-94 to Nelia Policy NF-200

ML20043G458
Person / Time
Site:	Cooper
Issue date:	06/13/1990
From:	Trevors G NEBRASKA PUBLIC POWER DISTRICT
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
NLS9000224, NUDOCS 9006200324
Download: ML20043G458 (41)

Text

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GENERAL OFFICE

4. _ Nebraska Public Power District

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NLS9000224

- June 13, 1990  ;

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U.S. Nuclear Regulatory Commission- t

. Document Control Desk

-Washington, DC 20555

Subject:

Nuclear Energy Liability Insurance Cooper' Nuclear Station ,

NRC Docket No. 50-298, DPR-46

' Gentlemen:

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l' , -Enclosed, for-your information and use, are two (2) copies of Endorsement Nos.

72, 73,- 74, 75, 76, 77 and 78 to Mutual Atomic Energy Liability Underwriters

' Policy MF-70'and Endorsement Nos. 88, 89, 90, 91, 92, 93 and 94'to Nuclear .

Energy Liability Insurance Association Policy No. NF 200. t n

L Endorsements 72,:73'and 74 to Policy MF-70 and Endorsements 88, 89 and 90 to }

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Policy NF-200 reflect revisions to these policies to bring them'into alignment ]

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• with'the August 20, 1988,- renewal of the Price Anderson Act. Endorsements 75, #

'76 and 77:to Policy MF-70 and Endorsements 91, 92 and 93 to Policy NF-200 are-new environmental coverage endorsements. Endorsement 78 to Policy MF-70 and Endorsement 94 to NF-200 are endorsements which list the subscribing companies ,

f . participating on those policies for calendar year'1990.

1 Should~you have any questions or require additional information, please l contact my office.

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L -Sincerely, i

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l P .A Trevors li Division Manager li Nuclear. Support L

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NUCLEAR ENERGY UA51UTY INSURANCE ASSOCIATION

. 1 WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)'

Effective August 20, 1988, 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 -l m

which the policy applies as proof of financial- protection i and which (a) arises out of or results from or occurs in the course of the construction, 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:

(1) 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 tho' claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.

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 NE-33b Page-1 of 3

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4' (a) bodily injury or. property damage which is intentionally sustained by the

, claimant or which results- from a >

nuclear

'the claimant; incident intentionally and wrongfully caused by (b) {

bodily injury sustained by any claimant who is empiryed l at the site of and in connection with the act!.vity where the extraordinary nuclear occurrence takes place  !

if-benefits be provided therefor;are either payable or required to under any workmen's compensation or occupational disease law; i (c) any claim for punitive or exemplary damages, provideO with staterespect to any claim for wrongful death under' any nature, law which provides for damages only punitive 'in that the thic exclusion does not apply to the . extent claimant has sustained actual damages, measured by too pacuniary injuries resulting : from such death but not to exceed the maximum amount ,otherwise recoverable under law.

3. The waivers set forth in paragraph 1. above shall be l effective only with respect to bodily injury or property damage to which the policy applies under its terms other ,

-than to bodilythis endorsements provided, however,~that with respect injury or property damage resulting extraordinary nuclear occurrence, . Insuring Agreement from an

! IV,

" Application- of Policy"4 shall not operate to -bar coverage i

for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and l- (b) which.is discovered and for which written claim is made against the insured not- ~1ater than twenty 20 l the date of the. extraordinary nuclear occurr(enc)e. years after Such waivers- shall not- apply to, or prejudice the prosecution or defense of any claim or portion of claim l which is not within.the protection afforded under 1 (a) the' provisions of the policy applicable to the financial protection required of the named insured; l l'

p (b) the agreement of indemnification between tha insured and the Nuclear named Regulatory Commissian made pursuant 1954, as amended; to section and 170 of the Atomic Energy Act of i (c) the limit of liability provisions of subsection 170s.

of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the

.damages.

failure of the claimant to take~ reasonable steps to mitigate

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 l NE-33b Page 2 of 3 L

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applies ' injury proof or propertyprotection, of financial damage to which the policy '

5. As-used herein: i

" extraordinary nuclear occurrence" means an avr.nt which the Nuclear Regulatory Commission has determinr.d extraordinary nuclear occurrence as defined to- be an.

Energy Act of 1954, as amended. in the Atomic

" Financial protection" and " nuclear incident" 'have the "

meanings amended.

given them in the Atomic Energy Act of 1954, as, l

" claimant" means the person or sustaining the bodily in organization- actually or property damage and also.

includes his assignees, jury legal representatives and other persons or . organizations entitled to bring- an action for damages on account of such injury or-damage, l i

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. Effective,Date of this Endorsement August 20, 1988 To fors a part of Policy No. NF-200 [

12:01 A.M. Standard time t

' Issued to Nebraska Public Power District Date of issue February 16, 1990 For the cribing panles By

\ dent Endorsement No. 88 Countersigned by

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j Nucitar Energy Liability Insurance .l NUCLEAR ENERGY LIABILITY INSURANCE- ASSOCIATION 1

SUPPLEMENTARY ENDORSEMENT i WAIVER OF DEFENSES l REACTOR CONSTRUCTION AT THE FACILITY Effactive August application of 20, 1988, it is agreed that in construing the paragraph 2(b) of the WAIVER OF- DEFENSES J

ENDORSEMENT ~ NE-33b with respect to an extraordinary - nuclear occurrence occurring at the facility,. a . claimant who is l employed a

at the facility in connection with the construction of nuclear reactor with respect to which . no operating license has been. issued by the Nuclear Regulatory Commission shall not n

be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place it:

(1) the claimant is employed exclusively in connection '

1 with the construction of a nuclear reactor, including all related equipment and installations at the facility, and l I

(2) no operating license has been issued by: the Nuclear  !

Regulatory Commission with respect to the nuclear l reactor, and (3) the claimant is not employed in connection with the possession, storage, use or. transfer of nuclear material at the facility.

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• Effective-Date of this Endorsesent . August 20, 1988 To fon a part of Policy No. NF-200 12:01 A. M. Standard time Issued to Nebraska Public Power District LD2te of Issue February 16,1990 For the s ribing panies, by l nh m

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Endorsement No.

89 Countersigned by .

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Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Restriction of Companies obliaagion to Defend.

'Investiaate. Necotiate or Settle Ane Claim or Suit (Section 170 0. of the Atomic Energy Act of 1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170: 0. of the Atomic Energy Act of 1954', as amended, an appropriate U.S. District Court determines that liability _from a single nuclear incident may exceed the limit of liability- under the applicable limit of -liability under subsection 1954, as 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of amended, the companies obligations _ under Insuring r Agreement I, to defend, investigate, negotiate - or settle any  :

claim or suit under the policy do not include any obligation that would costs, necessitate- or result in the companies incurring legal including costs of initiating, prosecuting, investigating, settling, or defending claims or. suits, which are not authorized for payment by a court pursuant to such subsection 170 0.

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h to en .' > thM IMs : o tme ccci; e,f the original E - ,

4, e ecm > nuna,e and being rnade part l ti i'a 'i in!v Form) as dcs-u w e, M m t, d o u, ncicunder.

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Effective Date of  !

this Endorsement August 20. 1988 To fors a part of Policy No. ~NF-200 12:01 A.M. Standard time li Issued to Nebraska Public Power District Date of issue February 16, 1990 For the su ibing Co antes er  !

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• Endorsement No. 90 Countersigned by #

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,. Nuclear Energy.-Wability insurance NUCLEAR ENERGY UA81UTY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT l

(Extraordinary Nuclear occurrence)

The named insured,-acting for himself and every other-i'sured

!~ n under the policy.. and the Insurance Association agree as follows: members of Nuclear Energy Liability

'1.

With ~ respect to any extraordinary nuclear occurrence to I which and which the policy applies as proof of financial protection (a) arises out of or resul'ts from or occurs in the course '

of the construction, possession, or= operation of the facility. or *

(b) arises of the out of or results from transportation.of or occurs nuclear in the material to course or from the facility, the insureds and the companies agree to waive 'I (1). any issue or defense as to the conduct of the claimant not limited to:

or the fault of the insureds, including bu t (i) negligence, (11) contributory negligence ' J (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 governmental immunity, and charitable - or ,

-(3) any issue or defense . based on any statute of i

limitations from the- dateif on; suitwhich is instituted within three years the claimant first knew, or-reasonably could have known. of his bodily injury or property damage and the cause thereof.

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, property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant: 4 NE-33c(1/1/90) Page 1 of 3

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(b); bodily injury r

4 sustained by any claimant -who is employed at the site of and in connection with the 1 activity- where the extraordinary nuclear occurrence takes place  !

or required if benefits therefor are either payable to be provided under any workmen's compensation or occupational disease lavt (c)- any claim for punitive or provided, exemplary damages, with respect to any claim for wrongful deathpunitive only under anyin State law which nature, provides for damages apply to the extent that thethis exclusion claimant has does . not sustained i actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the-c maximum amount otherwise recoverable under law. '

3.

The waivers set forth in paragraph 1. above 'shall be effective only with respect to bodily -injury, property-damage or environmental damage to which the policy applies under its terms ' other than this endorsements however, damage orthat with. respect to bodily injury, provided- ,

environmental damage resulting from' property extraordinary nuclear occurrence, the provisions of an COVERAGES bodily injury,A and C of the policy. providing coverage - for property damage or environmental damage caused during the policy period by the nuclear energy i hazard is madeand whichthe against is discovered insured notand forthan later which written claim ten-(10) years after the end of bar coverage for bodily the policy period shall not operate to  ;

injury, property damage -or environmental damage (a) which in caused policy period by the nuclear energy hazard andduring , the:

(b) which is discovered and for which written claim.is made against the insured not later than twenty (20 yea date of the extraordinary nuclear occurr)ence. rs after the Such waivers shall not apply to, or prosecution or defense of prejudice. the t'

any claim or portion of . claim =

which is not within.the protection afforded under (a) the provisions of the policy applicable- to

' financial protect-lon required of the named insured:the l (b) the agreement of indemnification between the named t

insured and the Nuclear Regulatory Commission made pursuant to Section 1954, as amended: and170 of the Atomic Energy Act of i l

(c)

! the limit of liability provisions of Subsection 170s.

1, of the Atomic Energy Act of 1954, as amended.

such waivers shall not preclude a defense based upon the failure of the claimant '

mitigate damages. to take reasonable steps to l

.NE-33c.(1/1/90) Page 2 of 3

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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 be l'. above shall judicially enforceable in accordance with their terms against any ~ insured in an action to recover damages ,

because of bodily injury, property damage or environmental i damage to which - the policy applies as proof of financial protution. j l

-5. As used herein:-

" extraordinary nuclear , occurrence" = means an event which the Nuclear Regulatory Commission has determined to_be-an ,;

extraordinary Energy Act of 1954, nuclear occurrence as defined in the Atomic; as amended.

" Financial . protection" .and " nuclear incident"- have the i meanings amended.

given them in the: Atomic Energy - Act of 1954, as 1

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" claimant" .means the personL or bodily injury, organization actually- i sustaining the property damage or environmental damage and also includes his assignees, legal -representatives = and other persons or organizations entitled injury or =to bring an action for damages'on account of such damage.

This is to certify that thk is a true copy of the original Endarsettrnt havin; tiw endon trmnt number and being made part of P *uri < !h nU i

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Endorsement No. 91 Countersigned by _

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N'uclear Energy Liability insurance:

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

SUPPLEMENTARY ENDORSEMENT L. WAIVER OF DEFENSES J REACTOR CONSTRUCTION AT THE FACILITY It -is agreed that in construing the application of

paragraph t2(b) of theextraordinary WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect ,

o. an facility, nuclear occurrence occurring at a claimant who is employed at the facility the connection with- the construction of a nuclear reactor with in respect to Nuclear which no operating Regulatory Commission license has been issued by the 4 shall- not. be considered as employed in connection nuclear occurrence takes place if: with the activity where the extraordinary (1) the claimant is employed exclusively in connection with all the related constructionequipment of a nuclear reactor, including facility, and and- installations at the (2) no operating license has been issued by the Nuclear Regulatory reactor, and Commission with respect to ' the nuclear (3) the claimant -is not employed in connection with the possession. . storage, .use or transfer of nuclear material at the facility, t y

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sE r em n January 1,1990 To form a part of Policy No. NF-200 12:01 A. M. Standard time Issued'to Nebraska Public Power District Date of Issue February 16, 1990 For the Sub ibing Co anies, By ~

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Endorsement No. 92 Countersigned by /

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• NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDATORY ENDORSENENT It is' agreed that:

(Facility. Form) 1.

INSURING AGREEMENT I is replaced by the following: -

I COVERACE A - LIABILITY To shallpay become on behalf of the insured all sums which the insured legally obligated - to pay as covered damages-because of bodily injury or property damage, or as covered ,

. environmental cleanup costs because damage. of environmental '

This Coverage applies .only to bodily injury, property damage or environmental damage caused- during the policy period by the nuclear energy hazard, and which.is discovered and for which written claim is made against the insured, the' policy not later than ten (10) years after the end of period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or-damage, and seeking damages or costs which are payable l under the terms of this policy but'the companies may make such investigation, negotiation and settlement of the i claim or suit as they deem expedient.  ;

The companies' duty to defend shall be limited, as described in INSURING AGREEMENT IV, if the claim or suit also seeks any of'the following, which in no event shall  ;

be construed as covered by this-policy:

(1) damages for on-site property damages (2) recovery of on-site cleanup ' costs or. any other cleanup costs . except covered environmental cleanup costs:=

1 (3) performance of an insured!s environmental protection i

-obligations any or on-site cleanup obligations or (4). other relief .or recovery except payment of covered costs. damages or covered environmental cleanup The companies' duty to defend claims or suits ends when i the limit of their liability has been exhausted pursuant to CONDITION 3.

Subject to INSURING AGREEMENT IV, the companies shall pay, 1

with respect to any claim or suit they defend, the costs incurred in the defense, including n

t' (1) costs taxed against the insured in any such suit and I interest on any judgment therein:

-(2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:

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(3) reasonable expenses.- other than loss of earnings,

. incurred by.the insured at the companies' request. I COVERACE THE FACILITYS - DAMAGE TO PROPERTY OF AN INSURED ' AWAY FROM With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured' those sums which such insured would have been legally obligated to pay as covered damages therefor, had such property belonged ~to another.

COVERACE C - SUBROGATION - 0FFSITE EMPLOYEES With respect to bodily injury caused- during the policy 1 period by the nuclear energy hazard to any employee of an l insured, and which is discovered and for which written 1 years is claim made after theagainst end ofthe insured, not later than ten (10) the policy period, to pay to the workmen's compensation carrier of such insured as follows:

-All 1 recoversums which such carrier would have been entitled ' to.

and retain as damages from another person or i organization, had such person or organization alone been legally - responsible for such bodily injury, by; reason of the rights acquired by subrogation by the payment of the benefits required : of such carrier . under the applicable workmen's compensation or occupational disease law. An employer who is. a duly - qualified self-insurer under coch law shall be deemed to be a workmen's compensation-carrier within the meaning of this coverage. .

t This coverage does not apply to bodily injury to any person who - is employed at and ' in connection with the facility: nor shall it constitute workmen's compensation : i insurance-as required under the laws of-any state.- ,

i 2.-

INSURING AGREEMENT II is replaced by the following:

II DEFINITION OF INSURED

.The unqualified word " insured" includes (a) the - named-insured and (b) any other person or organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily injury, the property nuclear damage energy hazard. or environmental damage caused by Subdivision (b) above does not include as an insured the United the Tannessee States Valley of America Authority. or any of its agencies, except Subject to CONDITION 3 and the other provisions of this ll policy, the insurance applies separately to each insured against whom claim is uade or suit is brought.

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_ INSURING AGREEMENT III is replaced by the.followingt-  !

III DEFINITIONS -Wherever-used in this policyt i

" bodily injury" means bodily injury, sickness or disease, e including person.

death resulting therefrom, sustained by any "coverod- damages" means damages 'because of _ bodily injury or - property damage - to which this policy appliest .but covered damages or on-site-cleanup costs. do not include' environmental cleanup costs

" covered environmental cleanup costs" means only those environmental _ - cleanup costs ' which are incurred directly.

for monitoring, containing. environmental testing for, cleaning;up, neutralizing or damage as extraordinary nuclear occurrence -or the result' of an a transportation ,

incident s but covered environmental cleanup costs do not  !

7 include on-site cleanup costs. i I

" disposal site" means any structure, basin, excavation, '

premises- or place prepared as a dump or site for the disposal of waste materials of a general nature, but which '

may also be used for the disposal of waste materials containing small_ amounts of nuclear material.

" environment" includes land, the atmosphers, and all  !

• watercourses, bodies of water and -natural resources, whether on, above or below the surface of the ground.

" environmental cleanup costs" include alla loss. -. cost or directive arising out of any governmental decree, ordor or expense ,~

action at (other- than an award of covered damages in an 4

f law) requiring or requesting a.. person or organization .to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination .1 of the-environment, whether the contamination is on, above or below the surface of the ground.

" environmental damage" means contamination of the environ-ment by nuclear material.

"onvironmental protection obligations" include obligations of any person-or organization all (1) relating to the protection of the environment from contamination and or imminent danger of contamination, (2) imposed by any governmental laws, regulations or ordinances.

" extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as 3

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d fin;di in tho caendatory Atcale. En*Jrgy Act of 1954 thereof. ,

[  : or in any law

" governmental" refers to I 1

governments and. authorities, federal, state and local i and political subdivisions thereof. including courts, agencies s

!. " indemnified nuclear facility" means (1)  !

"the facility"

-Liability. Policy as (Facility ' definedForm) in any Nuclear Energy Energy Liability- Insurance Association issued by Nuclear or Mutual (2)L any other nuclear facility, Atomic Energy Liability Unde if financial ' protection is

' Atomic Energy Act of 1954, required pursuant to the. i with respect- to any activitiesor any law amendatory thereof. i thereat. or operations conducted

" insured special' shipment" nuclear material, means a shipment of source material. i spent fuel, waste or tailings '

uranius' or. thorium from any ore processed pri its source material content, herein called " material " .

(1) to .the facility from any j

indemnified nuclear facility, but only location except an

-t if the transportation' mination' to beof interrupted the material is not by predeter-  ;

material from a by removal of- the.

1 transporting conveyance for any

' tation.

purpose orother-than the continuation of its transpor- 1 (2) from-'the facility to any other location, but only:

until the- mterial conveyance for is any removed purpose other from a transporting- j continuation of its transportation. than the-

" nuclear energy hazard" explosive means or other hazardous the radioactive, toxic.

material, but only if properties of nuclear (1) discharged or dispersedthe nuclear material is at. en the facility (2) person or organization,therefrom orrelinquish without possession intent toor custody

'the-nuclear material is in an insured shipment whi c h is away from any course of transportation, including other nuclear facility and is in the temporary (a) storage incidental thereto, withinhandling . and the territorial America, limits of Puerto Ricos itsor. territories theorUnited possessions, States of or (b) international the nuclear material waters or airspace, provided that is in transportation between two points located within the course of 4

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'- 4) the thereterritorial is no limits described in (a) above and deviation in the course of the I transportation for. the purpose of going to any other-country, state .or nation except for the purpose of going.to or returning from a  ;

as the result of an emergency. port or place of refuge t

" nuclear facility" means'"the facility" as defined _in any .i Nuclear Energy Liability Policy - (Facility Form) issued by '

Nuclear . Energy _ Liability. Insurance Association or Mutual Atomic Energy Liability Underwriters. . The term " nuclear 4 facility" also means a

' (1) any nuclear reactor, (2) any equipment or device designed or used for-

_(a) separating-the isotopes of uranium or plutonium, (b) processing or utilizing spent _ fuel, or j (c) handling, processing or packaging waste .

(3) any equipment - or device used for the processing, ,

fabricating . or alloying - of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where  !

such equipment or device is located consists of or contains more ' than 25 grams of- plutoniu9 or uranium 233 or any combination thereof, or % ore than 250 grams of uranium 235, i (4) . any structure, basin, excavation, premises or place prepared or used for the storage or disposal _of waste. a and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.

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" nuclearor material material" means byproduct source material, special nuclear material. i ..

" nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a self-sustaining chain reaction material. or to contain a critical mass of fissionable "on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.

"on-site cleanup obligations" include all obligations of any person or organization, a imposed by common law or otherwise, to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether the material' is on, above or below the surface of the ground.

"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use, 5

L provided such air: raft, watercraft or vehicles are not used in connection with the operation of the facility.

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" property damage" means physical injury to or destruction or of radioactive contamination of property, and loss of use property so injured. destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.

" source material." "special nuclear material." and "Atomic byproduct material" Energy Act of have the Manings given them in the 1954 or in any law amendatory thereof.

" spentorfuel" solid means any fuel element or fuel component, liquid. which has been used or exposed to radiation in any nuclear reactor.

"the facility" means the facility descrihed in the declarations 3

and includes the location designated in Ites of the declarations such location. and all property and operations at

" transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks open. punctures or ruptures the

' shipping containers or containment thereon but only if e both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course j

of the transportation, storage including handling and temporary incidental thereto. t

" waste" means any waste material '

(1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition (1) or of nuclear facility under parapaph (2) thereof. '

4.

INSURING AGREEMENT IV is replaced by the followly and -

INSURING AGREEMENT IV-A added by the "Amone.nent of coverage Endorsement continues to apply: for Workers claims (Facility Form)"

IV LIMITED DEFENSE OF irARTIALLY COVERED CLAIN5 OR SUITS The following provisions apply with respect to any partially covered claim or suit for which the companies' duty to defend has been limited by INSURING AGREEMENT Is (1) The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangament. By making 6

.-_. - . - - - . - - - - . _ - . - - - - . _ ~ _ . - . - _ . - - - - . -

4 -

}

I cush a defense, the companies shall not be considered as having deny paymentwaived their rights under this policy to 1 covered.

or reimbursement of the items not i

' . (2) As soon as practicable, the first named insured,  !

1 acting on behalf of all insureds, and the companies l

shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

The (3) companies' share e

exceed the portion of the of defense total defense costscosts shall that not ,

L represents the costs which would be reasonably and necessarily incurred in the defense of the claim or  :

suit in the absence of any claim or demand for the items not covered.

(4)

The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies' share, including reimbursement by the  ;

first named the companies. insured of all such excess costs paid by '

(5) If the companies and the first named insured cannot ,

agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent ,

to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in condition 19.

5.

. In EXCLUSIONS (d) and (e), and in all endorsements to this policy relating thereto, the words " bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage." I

6. EXCLUSION (f) is replaced by the following exclusions 1

(This policy does not applyt)

(f) to on-site property damage t

1

7. In CONDITION 3  !

and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item 4 of the declarations, the words " bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

4. In CONDITION 4 l

modifying the and in all endorsements to this policy dollar amount

' of the total aggregate liability of the companies with respect to a common

! occurrence ,

i (a) the words " bodily injury or

( " bodily injury, property damage" i

replaced by environmental damage": and property damageare or  :

( (b) the words " bodily injury and property damage" are replaced by " bodily injurys environmental damage." property damage and 7

, - - _ . _ - - _ - - _ - _ _ _ _ _ _ _ _ _ _ _ - - _ _ . - - - - - - _ _ _ _ _ . . - _ . . - - - - - -- -,.c --,.,-,-.n~- , ~ . , -

-' f

,- 9.

i

. In CINDITICMS 5, 11, 15 cnd 14. and in all endorsements to this policy property relating damage" arethereto, replacedthe b words " bodily injury or {

j damage or environmental damage."y " bodily injury, property 10.

CONDITION 19, DgCLARATIONS, is renumbered CONDITION 20.  ;

11.

The follow'ing CONDITION is added to the policy:

19 ARBITRATION 0F INSURING AGREEMENTOF DISPUTES IV RELATING TO THE APPL  !

All such disputes subject to paragraph (5) of INSURING AGREEMENT (the " Boa rd") for dispute.

IV ashall final beandsubmitted binding rebolution to a Board of Arbitratio of the 1

There named insured, shall be two parties to the arbitration the first i

duly authorizedacting on behalf of all insureds as their representative, and Liability Insurance Association, Nuclear Energy ,

companies as their duly authorized ;.epresentative. acting on behalf of the '

1 Except to the extent the I

otherwiset the following principlesparties will applytmutually agree (a) The j

arbitration will take place in New York, New i

York, of NewandYork.will be governed by the laws of the state  ;

(b)

Either party may begin the process of arbitration by giving intention notice to dotosothe other party in writing of its l

that it has appointed.and the name of the arbitrator (c)  ;

The other party shall then appoint in writing an arbitrator, and the arbitrators shall appoint in +

(d) The umpire shall act as chairman of the Board. writ If a party fails to name thirty (30) days of its arbitrator the other party's within  ;

l request that it do so, written appoint the requesting party may (e) If the an arbitrator for the party in default.

two arbitrators fail to agree i selection of an umpire within thirty (30) daysonafter the l

they have both been appointed, each of them shall  ;

( (f) choice shall be made by drawing lots.name two, The Theof whom th l arbitrators and umpire shall be executive officers or companies former executive licensed to do business officers of insurance States or of organizations designated in the as the Unite? first named insured issued under aEnergy by Nuclear Nuclear Energy Liability Policy Association or Nutual Atomic Liability Insurance Underwriters: Energy Liability the following shall not provided that the current employees of without the consent of both partiest be eligible for service 8

(L

,. o'

1. (1) any party claim or suittor likely party to the underlying (2) American Nuclear Insurers. MAERP Reinsurance Association any or their members: or (3) other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the affected by foregoing the Board'swhich may be materially decision.

(g) Within thirty (30) days after the appointment of the umpire, each to the goard. party shall submit its case in writing (h) The Board shall determine its rules of procedure, and the nature and extent of any discovery. testimony, examinat$'.

oral arr, a nt Se wraitted.

cross-examination of witnesses and members of t! Board shallThe be decision of any two final and binding on all parv ^5 hearing (

All discovery, submissions of evidence, itnesses and argument shall be completed within sic.4y (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

(1) The arbitrators and the umpire are not to be bound by any strict rules of legal procedure. evidence or legal precedents.

They shall. however, be governed to add to or change policy, by the terms of this and shall have no power its provisions. Subject to this.

admonition, they shall interpret the relevant provisions agreement, of this policy as an honorable business accordanceand with shall be entitledtogether such provisions to decide. in with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a ~ business point of view, without (j) favoring the interest of either party.

The thirty Board shall make its award in writing within (30) days after the close of the period, including any extension paragraph (h) above.

granted, described in. L (k)

If the Boardby prescribed fails to make (j) paragraph anabove, award then withinunless the time an extension is agreed tu by the parties, a new arbitration shall be commenced Lnd completed in accordance (a) through (j) with the procedure set out in paragraphs above. 1 (1) The award of the Board signed by any two cembers shallparties, all be final, not subject to appeal and bindi ng on including all policy and all insureds thereunder. insurers subscribin1 the The award shall be treated and may beasfiled a matter involving interstate comaarce, '

competent or confirmed in any court. of jurisdiction, state or federal, and judgment thereon enteract and enforced. in accordance with the law and practice of the forum.

9 5 m

s (m)

Unless the Board decides otherwise, each party shall pay for the expenses of the arbitrator appointed by or it and one half of the other costs of arbitration.

(n) If an arbitrator or umpire is unable or unwilling to act.

shall a new arbitrator or umpire, as the case may be, b9 appointed to act in his or her pla n. in (o) accordance with the provisions set forth abovr.

All materials relevant to the arbitration s..all be submitted to the Board in triplicate and the filing party shall opposing send simultaneously a copy thereof to the party.

12.

This endorsement applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

Thn E:

a to3 <cL,-tN tut M u. a true cw of the oridnal A . ; , ' < o unber end ticing made part o! ,

.1 F.* L; ^ W D '

m !tv Fonn) as &s-

't w_ ,

!b m:

• ce is airc ti ..cwunder.

<c$. T

.i. ,% i t. ,,,.xva m w m A'.

Am:n..n Nrks insutm 10 Effective Date of this Endorsement January 1. 1990 To form a part of Policy No NF 200 12:01 A.M. Standard Time issued to Nebraska Public Power District Date of issue February 16, 1990 For the su ribing c panies By 4 __

PRESI NT)

Endorsement No 93 Countersigned y me

/

4MN/

g iE-71 (1/1/90) Ho surance CountVrsignature

{

l

l 1

• I

.- Nuclear Energy Wability insurance l 1

NUCLEAR ENERGY UABluTY INSURANCE ASSOCIATION J l

l CNANGES IN BUS $ CRIB!h0 COMPAkitt AND IN tnt!R PROPORTIONATE LIAllLITY (20RttleNT CAL ( @AR TEAR M

1. It is agreed that with respect to bodily injury, property damage or environmental i damage caused, during the effective period of this endorsement, by the nuclear energy hazard

a. The word " companies" wherever used 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, property damage or environmental damage as designated below.  ;

2. It is agreed that the effective period of this endorsement is from the beginning T, of the effective datn of this endorsement stated below to the close of December

d. 31, 1990, or to the time of the termination or cancellation of the policy, if g sooner.-

6 Aetne Casualty & surety Co. 12.917337X

$ Alliant insurance Conpeny 1.51%341

,'>^ ALLstate Insuronee Company 5.535510E h American Home Assurance Co. 0.692%91 3g. Cmtinental Casualty Company 5.341750%  :

3 Continental Insurance Company 10.3338704 l

g *% y*1'

g. A Federal Insurance Capony 2.75 % 995 Ceneral Ins. Co. of America 1.722312%

l Ta*f'g.N

-6 Nmover Insurance Company 0.5950595

• Martford Ftte insurance Co. 10.3338704 l 0 I Nightanas insurance Company 0.344462%

j 9

j:j  %.7 5D a

s' w Home Indestitty Company ins. Co. of horth America 1.614667X 7.7504031 g >.y Motora Insurance Corporation 0.4305785 M As ? Ohio casualty Insurance Co. 0.1722311

1. Providence Washington Ins. Co. 0.1937604

( $

• 3 {f A, Reliance Insurance Company 0.516696E O.2 ~ P Royal Ins. Co. of America 3.616855%

( j St. Paul Fire 8 Marine Ins. Co. 5.991922%

%} f . , -

State Farm Firm 8 Casualty Co. 0.8611 % %

'y , WI /'s '

Tokio Marine & Fire Ins. Co. 0.516696%

6.

F Transamerica insurance Co. 0.8611%%

I E 7,$ L [Q A Trovelere indemnity Company 12.8 % 195%

"b Y QYv f; U. S. Fire Insurance Company 2.325121%

u.s. Fidelity a cueranty Co. 8.61155a4 2 EI p[ }lA t .

g

• Universal underwriters Ins. Co. 0.1722315 l g .y - Zurich Insurance Company 1.420o07%

i p g vg g Total 100.000000%

l. Ng.90 Effective Date of this Endorsement January 1. 1990 To form a part of Policy No. NF-200 12:01 A. M. Standard time Issued to Nebraska Public Power District A n Date of Issue Aoril 1. 1990 For the Subsc,ribing Companies, By D ~2 %

d sf en Endernement No. 94 Countersigned by

/ [ / Id *

.- \

, , P. .

Nuclear Energy Uability insurance i MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear occurrence)

Effective August 20, 1988, the named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as followst

1. With respect to any extraordinary nuclear occurrence to which and which the policy applies as proof of financial protection  ;

(a) arises out of or results from or occurs in the course of the construction, possession, or operation of the l 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, j

the insureds and the companies agree to waive i I

(1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but

not limited to

.

(1) negligence, (ii) contr.ibutory 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 it 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.

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 1

cause of action.

s

2. The waivers set forth in paragraph 1. above do not apply to ME-33b Page 1 of 3 i

.?A (a) bodily injury or property :tamage which is

. intentionally sustained by the eleimant

' or which results from a nuclear incident intetionally- and l wrongfully caused by the claimants (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required 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 only punitive in nature, any State law which provides for damages apply to the extent that thethis claimant exclusion does not has sustained actual damages, measured by the pecuniary injuries i

resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3. The waivers set forth in paragraph 1. above shall be effectiva only with respect 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 injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, " Application of Policy" shall not operate 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 (20) years after the date of the extraordinary nuclear occurrence.

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 protection required of the named insured; ,

(b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant 1954, as amended; and to Section 170 of the Atomic Energy Act of (c) the limit of liability provisions of subsection 170e, of the Atomic Energy Act of 1954, as amended. i Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.

ME-33b Page 2 of 3 L

o

t

.a l

a 4. Subject to

' < ,- all of the limitations stated in this  !

endorsement and in the Atomic Energy Act of 1954, as amended, the vaivers 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.

i

5. As used herein: '

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic ,

Energy Act of 1954, as amended. '

i

" Financial protection" and " nuclear incident" have the  ;

meanings given them in the Atomic Energy Act of 1954, amended. as '

" claimant" means the person or organization actually sustaining the bodily injury or property damage and also i includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

p' E is, to Enw cm.L; pm; uA j.f""' any of the orfahaf 3, ,

gc y ,$

• r

~ - P rlE n nunder

'ag Form) and as dcs.being mad  !

, ',g, g ', i hereunder.

A hd1$),, "" *"' U"d'2*

.. a Effective Date of this Endorsement August 20. 1988 To fors a part of Policy No, MF-70 12:01 A.M. $tancard time Issued to Nebraska Public Power District Date of issue February 16. 1990 For the Subscribing Companies NUYtRL ATOKIC ENERGY 1.IABILITY IBIDER By '

Endorsement No. 72 Countersigned by /

k&s a

MO ME-33b Page 3 of 3 surance Count rsignature

l

,. Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY UABILITY UNDERWRITERS

! SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES ItJACTOR CONSTRUCTION AT THE FACILITY Effective August application 20, 1988, of paragraph it is agreed that in construing the 2(b) of the WAIVER OF DEFENSES ENDORSEMENT occurrence ME-33b with respect to an extraordinary nuclear occurring at the facility, a claimant employed at the facility in connection with the construction who _is of t a nuclear reactor with respect to which no operating license has been is. sued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place ifs (1) the claimant is employed exclusively in connection with all the construction of a nuclear reactor, including related equipment and facility, and installations at the (2) no operating license has been issued by the Nuclear l

Regulatory reactor, and Commission with respect to the nuclear l

(3) the claimant is not employed in connection with the possession, storage, use or transfer of nuclear )'

material at the facility.

l l

'DA h to c:P inct d h b a tru? copy of the oridnal Endy i end M9 .;-ki e,qd being gnade par {

t of th-  :

d W s J; L 4 romu as des-l'J JM [

• n u ... ' 1: . .e . .do; t hercunM,

, . . .?c.$ . ?g < 4 Jen i.. L mo, < it. \W befa N Underwi .

Amt run !Wi h.ateis l

Effective Date of this Endorsement August 20. 1988 12:01 A.M. Standard time To fors a part of Policy No. MF-70 Issued to Nebraska Public Power District Date of issue February 16, 1990 For the Subscribing Cospanies Mtm1AL ATOKIC ENERGY LIABILITY IBIDER  ;

oy 1 - a~ m Endorsesent No. 73 Countersigned by /

ME 39b 4 a:av MO surance Count rsigna re

Nuclear Energy Liability insurance ,

MUTUAL ATOMIC ENERGY UABluW UNDERWRITERS Restriction of Companies Oblication to Defend.

Investicate. Necotiate or Settle Any Claim or Suit '

(Section 1.70 0. of the Atomic Energy Act of 1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 0. of the Atomic Energy Act of 1954' as amended, an appropriate U.S. District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 1954, 170 e. (1) (A), (B) and (C) of the Atomic Energy Act of as amended, the ' companies- obligations under Insuring Agreement I, to defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would costs, necessitate or result in the companies incurring legal including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0. .

This M to cern!v thM % is a true cc W cd the orig:nal En&e . m* - : 0 : em

(' t he N , i "w a m"in and being made part y F-

[-sic Q' jr g , ppgg g, i;o + ! t r. m u die.' i haeunder, il# " 1. -

\(e . ,1 -

Amm ~a k,nu Effective Date of this Endorsement August 20, 1988

, To fors a part of Policy No. MF-70 12:01 A.M. Standard time Issued to Nebraska Public Power District Date of issue February 16, lis90 For the Subscribing Companies INFUAL ATOKIC EBERGY LIABILITY WEERWRITEkl By *T . t f_.

Endorsement No.

74 Countersigned by O*O -

g - ShG&W ME-70 Mo aurance count reignature

t

. r Nuclear Energy Webility insurance I

MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS WAIVER OF DEFENBER ENDORREMENT (Extraordinary Nuclear occurrence) i The named insured, acting for himself and every other insured under Insurance the Association policy, and agree the membersas follows of Nuclear Energy Liability  !

1. i With respect to any extraordinary nuclear occurrence to j which and which the policy applies as proof of financial protection (a) arises of the out of or results construction, possession,from or occurs or in the course operation of the j facility, or (b) arises of the out of or resultsoffrom transportation or occurs nuclear material in the to course or from  !

the facility, j 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 tot 1

(1) negligence.

l (11) contributory negligence.

(iii) assumption of risk, and l

(iv) unforeseeable intervening- causes. whether involving the conduct of a third person, or an  ;

act of God. I (2) any issue or defense as to \

governmental immunity.-and charitable or  ;

(3) any issue or defense based on any statute  ;

of limitations from the dateif suit is instituted within three years i on .which the claimant first knew, or  !

reasonably could have known..of his bodily injury or property damage and the cause thereof.

The waiver of any such issue or defense shall be effective l regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the  :

cause of action.  !

1 2. The waivers set forth in paragraph 1. above do not apply to i

(a) bodily injury. pro'perty damage or environmental damage which is intentionally sustained by the claimant or and which results caused from a nuclear incident intentionally wrongfully by the claimant )

ME-33c(1/1/90) Page 1 of 3 '

l .

i (b) bodily injury sustained by any claimant who is

employed at the site of and in connection with the i- activity where the extraordinary nuclear occurrence

> takes place if benefits therefor are either payable or required to be provided under any workman's compensation or occupational disease laws (c) any claim for punitive provided.

or exemplary damages, With respect to any claim for wrongful deathpunitive only under any State law which provides for damages in nature, this exclusion does not apply to the extent that the claimant has sustained r actual resulting damages. measured by the pecuniary injuries from such death but not to exceed the maximum amount otherwise recoverable under law.

3. The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury. property damage or environmental damage to which the policy applies under its terms other than this endorse'aent t ,

~

however, damage or environmental damage that with respect to bodily injury, provided. property extraordinary nuclear occurrence, th9 provisions an re st.it i ng from of COVERACES A and C of the policy providing coverage for bodily injury.

property damage or environmental damage

, 1 caused during the policy period by the nuclear energy hazard and which is discovered and fot which written claim is made against the insured not later than ten (10) years aftercoverage bor the and of the policy period for bodily injury, shall not operate to t

en71ronmental damage property damage or (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for the insured not later than twenty (20 years after which written claim is made against datt of the extraordinary nuclear occurr)ence. the i

Suct 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 protection required of the named insured (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant 1954, as amended: to Section and170 of the Atomic Energy Act of (c) the limit of liability provisions of subsection 170e.

of the Atomic Energy Act of 1954 as amended.

Such failure waivers of shall not preclude a defense based upon the mitigate damages.

the claimant to take reasonable steps to ME-33c (1/1/90) Page 2 of 3

~

. -.. , , _ . . _ , . , . . _ , , . . _ , , . , ,.m - , , , , _ . _ , , , ~ . , .

(

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 against any enforceable in accordance with their terms insured in an action to recover damages because of bodily injury, property damage or environmental damage to protection. which the policy applies as proof of financial i

5. As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary Energy Act of 1954 nuclear occurrence as defined in the Atomic as amended.

" Financial protection" and " nuclear incident" have the meanings given them in the Atomic Energy Act of amended. 1954, as -

" claimant" means the person sustaining the bodily injury, or organization actually environmental damage and also includes property damage or his a s s f.gne e s . ,

1egal representatives and other persons or organizations

• entitled injury or to bring an action for damages on account of such damage.

{y j h e "b m that this h n tnic my N 6, ogg 4,

y.3

' . ,, . n. , m ,,3,r e!wl oeing fnada part y' ' .

cv//uiFly Form) as 4.s.

,g Q Mhereunder. ,

$b$ nwM,((""*"*"#""'"u Effective Date of this Endorsement January 1. 1990 To form a part of Policy ho. MF-70 12:0)'A.M. $tenderd tim Issued to Nebraska Public Power District Date of issue February 16, 1990 For the Subscribing Companies MtrtuaL ATOKIC EXERGY LIABILITY (BIDERVRITERS By y

T. MdI -, s Endorsement No. 75 countersignd. by bM ME-33c(1/1/90) Page 3 of 3MO k deusm -

surance count rsign u,

[- Nuclear Energy LiabilRy insurance

(

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS  ;

SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY i

i It is agreed that in construing the application of paragraph 1 2(b) an to of'theextraordinary WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect facility, a claimant who is occurrence occurring at the nuclear i employed at the facility i

connection with the construction of a nuclear reactor with in Nuclear Regulatory operating respect to which no license has been issued by the Commission shall not be considered as employed nuclear occurrence in connection takeswith place theiftactivity where the extraordinary (1) the claimant is employed exclusively in connection with all the construction related equipment and of a nuclear reactor. including facility, and installations at the j

(2) no operating license has been issued by the Nuclear I Regulatory reactor, and Commission with re9pect to the nuclear (3) the claimant storage, possession, is not employed la connection with the use or transfer of material at the facility. nuclear Tid u> c# tM % b a inn cope ed the orlinal r, .m. 'E .+ n knc < ri w.anba und being made part s6 e .

a. .

w: M / p!dy Form) as des-i, a

~ m n apmfp hereunder.

u, . t .z.<n:o.4, m m i ,u=Uenm 2 L ga Anen a luam Inwrue Effective Date of ,

this Endorsement January 1. 1990 To form a part of Policy No. MF-70 ,

12:01 A.M. Standerd time Issued to Nebraska Public Power District Date of issue February 16. 1990 <

For the Subscribing Comptnies t

MINUAL ATONIC ENERGY LIABILITY PADER '

1 By M . h ,% Uj, m_ +m

~  ;

L Endorsement No. 76 Countersigned by i /

ME-39c (1/1/90)

/?p8Q MNl& V l go surance Count reignature

't .

n Nuclear Energy Usbility insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AnzuoAtomy twoomszuzur '

It is agreed that:

(Facility Form)

1. INSURING ACREEMENT I is replaced by the followingi I COVERACE A - LIABILITY To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage. or as covered environmental cleanup costs because damage. of environmental This coverage applies only to bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the insured, the policynot later than ten (10) years after the end of period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage. and seeking damages or costs which are payable under the terms of this policy but the companies may make such investigation, negotiation and settlement of the claim or suit as they doen expedient.

l The companies' duty to defend shall be limited,

as described in INSURING AGREEMENT IV, if tha claim or suit also seeks any of the following. which in no event shall be construed as covered by this policy (1) damages for on-site property damaget (2) recovery of on-site cleanup costs l or any other cleanup costs except covered environmental cleanup costs

(3)- performance of an insured's environmental protection (4)

. obligations or on-site cleanup obligations or any other relief l or recovery except payment of covered damages or covered environmental cleanup costs.

The companies' duty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION 3.

Subject to INSURING AGREEMENT IV.

with respect to any claim or suit they defend,the companies shall pay, the costs incurred in the defense, including (1) costs taxed against the insured in any such suit and interest on any judgment therein (2) premiums on appeal bonds and bonds to release attachments to apply for orinfurnish any suchsuchsuit, but without obligation bonds

. . \

o ,

l (3) reasonable expenses, other than loss of earnings. )

incurred by the insured at the companies' request. l i

COVERAGE g - DAMAGE TO PROPERTY OF AN INSURED AWAY FRON THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such i insured those suas which such insured would have been I legally obligated to pay as covered damages therefor, had '

such property belonged to another.

COVERAGE C - SUgk00ATION - 0FFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written  :

i claim is made against the insured, not later than ten (10) j years af ter the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:

All recover suas which such carrier would have been entitled to and retain as damages from another person or organization, had such person or organization alone been

' legally responsible for such bodily injury, by reason of  ;

the rights acquired by subrogation by the payment of the benefits required of such carrier under the. applicable i workmen's compensation or occupational disease law. An employer who is a duly qualifled self-insurer .tnder such law shall be deemed to be a workmen's compensatitn carrier )

i within the meaning of this coverage.

This Coverage does not apply to bodily injury tc any 1 person who is employed at and in connection with the facilityt nor shall it constitute workmen's competisation insurance as required under the laws of any state.

2.

INSURING AGREENENT II is replaced by the following:

II DEFINITION OF INSURED 1

The unqualified word " insured" includes (a) the named L

insured and (b) any other person or organization with i

l respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily injury, the property nuclear damage energy or environmental damage caused by hazard. ,

l-Subdivision United States(b) of above dMs not include as an insured the America the Tennessee Valley Authority. or any of its agencies, except Subject to CONDITION 3. and the other provisions of this policy. the insurance applies separately to each insured {

against whom claim is made or suit is brought. i 2

. . ~ . - - - . . - , - . - ,

9 i

P

?

• 3.

' ~

INSURIN3 AGREENENT III is replaced by the following III DEFINITIONS Whart ar used in this policy:

" bodilyginjury" means bodily injury, sickness or disease includin person. death resulting therefrom, sustained by any ,

i

" covered damages" means damages because of bodily inju or property damage to which this policy appliesa but ,

or on-site cleanup costs. covered damages do not include environm t

" covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring.

containing testing for, environmental damage cleaningas up, neutralizing or +

extraordinary nuclear occurrence or a transportation the result of an

incidenta but covered include on-site cleanup costs. environmental cleanup costs do not ,

t,

" disposal site" means any structure, basin. excavation.

premises or place prepared as a dump or site for the disposal of waste materials of a general nature , but which may also be used for the disposal of waste materials containing small amounts of nuclear material.

"environnettt" includes land.

watercourses the atmosphere, and all whether on, a. . bodies of water and natural resources, bove or 5elow the surface of the ground.

" environmental cleanup costs" include expense arising out of any governmentalall loss. cost or '

directive decree, order or action at (other law) than an award requiring or of covered damages in an for, cleaning uporganization to undertake requesting a person or pay for monitoring, or .

of below or the environmen,t, the surface of the whether ground. the contamination . above is onneutr ment by nuclear. material." environmental damage" means con -

" environmental protection obligations" obligations of any person or organization include 'all (1) relating to theor contamination protection imminent of the environment danger of from and contamination, (2) imposed by any governmental laws, ordinances. regulations or

" extraordinary the nuclear occurrence" means determined United states an event which .

Nuclear to be an extraordinary Regulatory Commission has nuclear occurrence as 3

. t

N ea .

+

defined in the Atomic Energy Act of 1954 or in any law amendatory thereof.

" governmental" refers to federal, state and local governments and authorities, including courts, agencies and political subdivisions thereof.

"indemnitled nuclear facility" means (1) "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is Atomic Energy Act of 1954 required pursuant to the or any law amendatory thereof.

with thereat. respect to any activities or operations conducted

" 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 " material."

(1) to the facility from any indemnified nuclear f a cil?. ty location excspt an

. but only if the transportation of the material is not by predeter-mination to be interrupted by removal material from a of the transporting conveyance for any

('

purpose other than the continuation of _ its transpor-tation. or (2) from the facility to any other location. but only ,

until the materini conveyance is removed from a transporting for any purpose other than continuation of its transportatiors. the

" nuclear energy explosive hazard" means or other hazardous the radioactive, toxic.

properties of nuclear-material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession e custody thereof t3 any other person or orscnizatt:;en, or (2) the nuclear material is in an insured shipment which is away from any other nuclear facility-and is in the course of transportation, including handling and temporary storage incidental thereto, within (a) the territorial America, limits of the its territories United States of or possessions, or Puerto Ricos or (b) international waters or airspace, provided that l

the nuclear material is in the course of transportatiots between two points located within L

4

-y_. - - -,--- -- p ap-- , --,w..,,-w--..,,,w --

n., y .--,_.,-,_-,.w- , _ _ , _ . . , . , ,_ - ,- -m, . -c . - , - - -.----,c--'

- . );

I the territorial there limits described is no deviation in (a) above and i in the course of the  !

transportation for the purpose of going to any other country, going to or state or nation, returning fromexcept a for the purpose of as the result of an emergency. port or place of refuge

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. The term " nuclear facility" also means (1) any nuclear reactor.

(2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium.

(b) processing or utilizing spent fuel, or (c) handling processing or packaging waste.

(3) any equipment or device used for the processing, f abricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof. or more than 250  :

grams of uranium 235 '

)

(4) any structure, basin, excavation. premises or place prepared or used for the storage or disposal of waste, ,

and includes the site on which any of the foregoing .is located, all operations conducted on such site and all 4

premises used for such operations.

" nuclear material" means source material, special nuclear material or byproduct material. i

" nuclear reactor" means any apparatus designed or used to sustain  ;

nuclear fission or a self-sustaining chain m

reaction or to contain a critical mass of fissionable material.

"on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations. l "on-site cleanup obligations" include all obligations of any person or organization. Imposed by common law or otherwise.

for, cleaning up neutralizing or containing to undertake or pay for monitoring, testing contamination by nuclear material at the facility. whether the material is on, above or below the surface of the ground.  !

"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use.

5

. i t - prcvided cuch otrorcf t. k watorcroft er vehicles are not u ed in connection with the operation of the facility.  ;

or radioactive contamination of property, an of I property so injured. destroyed or contaminated, and  ;

lossbecause use of use ofpossibly property sowhile evacuated or withdrawn from contaminated imminent danger of contamination. or because of -

" source

" byproductmaterial." "special nuclear Atomic Energy material" have the meanings material."

given and them in the thareof. Act of 1954 or in any law amendatory

" spent solid or fuel" means liquid whichanyhasfuel elemer.t or fuel component.

1 I

radiation in any n.uclear reactor.been used or exposed to "the facility" means the facility described in the 3 oflocation.

such the declarations and all property and op em s at i

" transportation incident" means of nuclear a discharge or dispersal collision or material upset offrom an insured shipment cau -

accident that breaks theopen. transporting conveyance, sed by punctures or rupturesor the an  ;

shipping containers '

both the discharge orordispersal containment andthereon th6 but anly if collisien, upset l

away from any disposal site, and both occur i of the storage transportation, including handling ante temporary incidental thereto.

"(1) waste" means any waste material )

(2) containing byproduct material and resulting from the 3 operation by any person or '

1 organization of the definition of any nuclear facility included within (1) or (2) thereof. nuclear facility under paragraph  !

4.

INSURING AGREEMENT IV isbyreplaced by the following and INSURING AGREEMENT IV-A added the " Amendment coverage Endorsement for Workers claims continues to apply: of i (Facility Form)"

l IV LIMITED The DEFENSE OF PARTIALLY COVERED following provisions apply with respect to any duty to defend has been limited by INSURING A I:

(1) The companies will defend the companies and the first the claim or suit unless named agres on a different defense arrangement. insured mutually By making 6

4 '

! cuch a defense, the companies shall not be considered as having deny payment waived their rights under this policy to or reimbursement of the items not covered.  !

(2) As soon as practicable, the first named insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3) The companies' share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

(4) The companies shall have a right to contribution ,

from the first named insured for all defense costs as they are incurred in excess of the amount of the companies' share. including reimbursement by the first named the companies. insured of all such excess costs paid by  !

(5) If the companies and the first named insured cannot agree on the companies' share of defense costs, the disputa shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.

5. In EXCLUSIONS (d) and (e), and in all endorsements to this policy relating thereto, the words " bodily injury or  :

property damage" are replaced by " bodily injury, property damage or environmental damage."

4

6. EXCLUSION (f) is replaced by the following exclusiont

[This policy does not applys)

(f) to on-site property damage '

7. In CONDITION 3 and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item 4 of the declarations. the words " bodily injury or property damage" are replaced by " bodily injury. '

property damage or environmental damage."

8. In CONDITION 4 modifying the and in all endorsements to this. policy dollar amount of the total aggregate liability of occurrence: the companies with respect to a common (a) the words " bodily injury or replaced by " bodily injury, property damage" property, damage are or environmental damage" and (b) the words " bodily injury and property damage" are replaced by " bodily injury, property damage and environmental damage." ,

7

.- _ _ _ _ - - - _ _ _ _ _ _ _ _ . _ _ _ _ __ _ -.- .- . -. - - . - . - - - . . - , ~ , . _ . -

• ' t 9.

? '. In CONDITIONS 5. 11. 15 and 18. and in all endorsements to (

this policy relating thereto, the words " bodily injury or '

4- property damage" are replaced by " bodily injury, property damage or environmental damage."

10. CONDIT10N 19 DECLARATIONS, and CONDITION 20 NUTUAL POLICY CONDITION, are renumbered CONDITIONS 20 and 21.

11.

L The following CONDITION is added to the policy:

19 ARBITRATION OF DISPUTES RELATING TO THE APPLICATION 0F INSURING AGREEMENT IV  !

. All such disputes subject to paragraph (5) of INSURING AOREEMENT IV shall be submitted to a Board of Arbitration (the " Board")

dispute. for a final and binding resolution of the There shall be two parties to the arbitrations the first named' duly authorized insured, acting on b6 half of all insureds as their representative, and Nuclear Energy Liability Insurance Association. acting on behalf of the companies as their duly authorized representative.

Except to the extent the parties mutually agree otherwise. the following principles will apply: *

(a) The arbitration will take place in New York, New York, of Newand York.will be governed by the laws of the State (b) 1 Either party may begin the process of arbitration by giving notice to the other party in writing of its intention that to do so and the name of the arbitrator it has appointed.

(c) The other party shall then appoint in writing an arbitrator, and the arbitrators shall appoint in writing an umpire before they begin the arbitration.

(d)

The umpire shall act as chairman of the Board.

If a party fails to name its ,

thirty (30) days of arbitrator within the other party's written '

request that it do so, appoint the requesting party may an arbitrator for the party in default. '

(e) If the two arbitrators I fail _to agree on the selection of an umpire within thirty (30) days after ,

they have both been appointed, each of them shall name two.

choice ofbewhom shall made the by other drawingshall decline one.

lots. The (f) The arbitrators and umpire shall be executive officers or companies former executive licensed to do businessofficers of insurance States or of organizations designated in the United as the first j

named issued insured under a Nuclear Energy Liability Policy by Nuclear Energy Liability Insurance Association or Nutual Atomic Energy Liability Underwriterst the following provided that the current employees of I._ shall not be eligible for service  ;

8 l

1 l

[ ]

,. e

? *

!' 4 [. withcut th3 consent of both parties: '

(1) any party or likely party to the underlying claim or suitt

' (2) American Nuclear Insurers. MAERP Reinsurance Association or their members or (3) any other insurer or reinsurer which has i casualty insurance or reinsurance in force on any of the affected by foregoing the Board'swhich may be materially decision. j (g) Within thirty (30) days after the appointment of the i umpire, each party shall submit its case in writing to the Board.

(h) The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, ,

examination oral argumentor cross-examination of witnesses and permitted. t The decision of any two members all parties.of the Board shall be - final and binding on 4

All discovery, submissions of evidence.

hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

(1) The arbitrators and the umpire are not to be bound by any strict rules of legal procedure. evidence or legal precedents.

They shall. however, be governed by the terms of this policy, and shall have no power to add to or change its provisions.

admonition, Subject,to this they shall interpret the relevant provisions of this policy as an honorable business-agreement, and shall be entitled to decide, in accordance with such provisions together . with the other materials submitted to them, what they think is the fair and parties right thing to be done between the from a business point of view, without (j) favoring the interest of either party.

The Board shall make its award in writing within

-thirty (30) including any days after the close of the period, extension granted, described in-paragraph (h) above.

(k)

If the Boardby prescribed fails to make (j) paragraph anabove. award then withinunless the time an extension is agreed to by the parties, arbitration shall a new be commenced and completed in 1

accordance (a) through (j)with the procedure set out in paragraphs above.

(1) The award of the Board signed by any two members shallparties, all be final,including not subjectall to appeal and binding on policy and all insureds thereunder. insurers subscribing the The award shall be treated as a matter involving interstate commerce, ,

and may be competent filed or confirmed in any court of jurisdiction, state or federal, and l judgment thereon entered and anforced, in accordance with the law and practice of the forum.

9

Y.1 (m) Unless the Board decides otherwise, each party shall pay the expenses of the arbitrator appointed by or for it and one half of the other costs of arbitration.

(n) If an arbitrator or umpire is unable or unwilling to act, a new arbitrator or umpire, as the case may be, shall be appointed to act in his or her place, in accordance with the provisions set forth above.

(o) All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.

12. This endorsement applies to all claims for damages, costs, i expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

This is to cetN that ths is a true conv et the original D < us , nt 1e (Sc endwerrn.t nu uber and being made part w tr *'c .

n. 1. C to I-nw 0 %v Fonn) as de

, ,,w o enou her eunder. '

,Q , y V a .. , , , , n m 1.s.w#undam.

/a 4 . u tun a in ham 10 Ef fective Date of i this Endorsement _ danuary 1,1990 ,To form a part of Policy No. MF-70 "

Issued to Nebraska Public Power District

' Date of Issue _ February 16. 1990 For the Subscribing Companies MUTOAL ATOMIC ENERCY LIABILITY UND WRITERS By _

Endorsement No. 77 Countersigned by~ ._

ME-71 (1/1/90) N @s GN' MO

• surance Count rsignature

. _ ~ _ .- , - _. . ,--.

9' Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS l l

CHANCES lh $UBSCRIB!hG COMPAhlis AND IW THt!R PROPotil0kAft LI ABILITV t@0R$tMENT CAttNDAR TEAR 1000

1. It is agreed that vith respect to bodily injury, property damage or environmental 1 damage caused, during the effective period of this endorsement, by the nuclear )

energy hazards

a. The word " companies" wherever used in the policy means the subscribing companies listed below. {'

l

b. The policy shall be binding on such companies only, )

c. Each such company shall be liable for its proportion, as designated belov, of any obligation assumed or expense incurred under the policy because of l

_ such bodily injury, property damage or environmental damage.

1 It is agreed that the effective period of this endorsement is from the beginning

'goftheeffectivedateofthisendorsementstatedbelowtotheeffectivedatethat another " Changes In Subscribing Companies And In Their Proportionate Liability

$ $ Endorsement" changes the Companies and/or their proportions as listed in this

.' .8 y @ndorsement, or to the time of the termination or cancellation of the policy, if 7

2*[j1hooner.

• j E

P Arkwrlpht Mutual Insurance Comany 21%

YD k

k2y Egloyers Irsurance of Wausau, A Ntual Cogany 21%

Liberty Mutual Insurance Com any 28%

U g,

" 4 Ludermons Ntual Casualty Comany 30%

o hS y NOTitE OF AintmL IEETIPe5 s E , The arviuol settings of Arkwright The annual meetings of Esployers k Insurance Mutual Comany are held Insurance of Wausau A Ntual

$*2*3 IM (J at its home office in Waltham, Massachusetts, on the second Wediososy Co m any, are held at its home office in Wausau, Wisconsin, on j["

u S g[

b of March in each year, at ten thirty o' clock in the morning, the fourth Friday of May in each year, at nine o' clock in the mornirg.

an y2 qd i -

t-4*j V *}I e

The annual meetings of Liberty Ntual traurance Cogany are held at its home The enraael meetings of Ltatierinens Mutual Casualty Cogeny are held i

2 [

u o jZ8 office in Boston, Massachusetts, on the third Wednesday of April in each at its home of fice in Lorg Grove Illinois, on the third Tuesday of

.y C p ~EP  % year, at ten o' clock in the porntry. May in each year, at eleven o' clock g g j in the mornirg.

1. w 7.b d Effective Date of this Endorsement January 1. 1990 To form a part of PolAcy No. MF-70 12:01 A.M. Standard time 1

Issued to Nebraska Public Power District Date of issue April 1. 1990 For the Subscribing Companies MUTUAL ATOMIC E GYLIABILITYUNDERVRIThS By - .z. an,A mT7 Endorsement No. 78 Countersigned by

. __