ML20062A893

Indemnity Agreement B-84

ML20062A893
Person / Time
Site:	LaSalle
Issue date:	09/25/1978
From:	COMMONWEALTH EDISON CO.
To:
Shared Package
ML20062A891	List: ML20062A890 ML20062A893
References
B-84, NUDOCS 7810180090
Download: ML20062A893 (14)

Text

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[a UNITED STATES

l, , -t NUCLEAR REGULATORY COMMISSION W ASHINGTON, D. C. 20555 j .Z.k_ ;, y -

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-Docket No. 50-373 Indemnity Agreement No. B-84 ,

d 374 This Indemnity Agreement-No. B 84 is entered into by and between

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i Commonwealth Edison Company 1 ',

!i Ji (hereinafter referred to as the " licensee") and the United States Nuclear

j Regulatory Commission (hereinafter referred to as the " Commission") pursuant j' to subsection 170c of the Atomic Energy Act of 1954, as a= ended (herein-

]l after referred to as "the Act").

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ARTICLE I j(';_

I As used in this agreement:

f( " Nuclear reactor," " byproduct material," "pt.rson," " source

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material," and "special nuclear material" shall have the meanings ll given them in the Atomic Energy Act of 1954, as amended, and the j

regulations issued by the Commission.

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2. Except where otherwise specifically provided, "acount of finan-

',I cial protection" means the amount specified in Item 2a and b, of the i

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Attachment annexed hereto, as modified by paragraph 8, Article II, with respect to common occurrences.

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3.(a) " Nuclear incident" means any cccurrence, including the an extra-location

' ordinary nuclear occurrence, or series of occurrences at 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, h explosive, or other ha::ardous properties of the radioactive material.

l (b) Any occurrence, including an extraordinary nuclear occurrence,

.' , or series of occurrences causing bodily injury, sickness, disease, or i .

death, or loss of or damage to property, or loss of use'of property, i

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

1. The radioactive material discharged or dispersed from the location over a period of days, weeks, months or longer, and also arising out of such properties of other material .

defined as "the radioactive material" in any other agreement or agreements entered into by the Commission under subsection 170c or k of the Act and so discharged or dispersed from "the I location" as defined in any such other agreement, or 1,

11. The radioactive caterial in the course of transportation f

j > and also arising out of such properties of other material

defined in any other agruement entered into by the Commission pursuant to subsection 170c or k of the Act as "the radio-active caterial" and which is in the course of transportation j shall be deemed to be a common occurrence. A common occurrence shall l

be deemed to constitute a single nuclear incident.

I e 4. " Extraordinary nuclear occurrence" means an event which the I Commission has determined to be an extraordinary nuclear occur-i rence as defined in the Atomic Energy Act of 1954, as amended.

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5. "In the course of transportation" means in the course of transper-tation within the United States, or in the course of transportation

outside the United States and any other nation, including handling or j temporary storage incidental thereto, of the radioactive material to j the location or from the location provided that

(a) With respect to transportation of the radioactive material to the location, such transportation is not by predetermination to

I be interrupted by the removal of the material from the transporting l

conveyance for any purpose other than the continuation of such trans-

,[ portation to the location or temporary storage incidental thereto; lt (b) The transportation of the radioactive material from the loca-l

[ tion shall be deemed to end when the radioactive material is removed j from the transporting conveyance for any purpose other than the con-ll tinuance of transportation or temporary storage incidental thereto; (c) "In the course of transportation" as used in this agreement ii[

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.shall not include transportation of the radioactive material to the j

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

from any other " location" as defined in any other agreement. entered into by_the Con =ission pursuant to subsection ~170c or k of the Act..

' 6. " Person' indemnified" =eans the licensee and any other person

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l who =ay be liable for public liability. "

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! 7. "Public liability" =eans any legal liability arising out of or I

resulting from a nuclear incident, except (1) clai=s under State.or

' Federal Work =en's Cc=pensation Acts of e=picyees of persons inde=ni-

! fied who are enployed (a) at the location or, if the nuclear incident

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l occurs in.the course of transportation of the radioactive caterial,

) on the transporting vehicle, and (b) in connection with the licensee's l

possession, use or transfer of the radioactive =aterial; (2) cla1=s li arising out of an act of war; and- (3) clai=s for icss of, or da= age

to, or loss of use of (a) property which is located at the location and used in connection with the license ~e's possession, use, or'trans-

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fer of the radioactive caterial, and (b) if the nuclear incident

" occurs in the course of transportation of the radioactive material, the transporting vehicle, containers used in such transportation, and the radioactive material.

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! 8. "The 1 cation" means the location described in Ite= 4'of the Attach =ent hereto.

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

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

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reactor (s) .

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

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ARTICLE II

1. At all times during the ter= of the license or licenses desig-nated in Ite= 3 of the Attachment hereto, the licensee vill =aintain

[ financial protection in the amount specified in Ite: 2 of the Attach-g t

ment and in the for= of the nuclear energy liability insurance policy i

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If = ore than one, license is designated designated in the Attachment. the licensee agrees to maintain such in Item 3 of the Attachment, financial protection until the end of the term of that license which

' will be the last to expire. The licensee shall, notwithstanding the suspension or revo-expiration, termination, modification, amendment, 3.of the Attach-

' cation of any license or licenses designated in Ite ment, maintain such financial protection in effect until all the. radio-I active material has been removed fro = the location and transpo:tation of the radioactive =aterial frca che location has ended aa. defined in

' subparagraph 5(b), Article I, or until the Co==ission authorizes.The che terminat:on or the =odification of such financial protection-Commission will not unreasonably withhold such authorization-j In the event of any payment by the insurer or insurers under a 2.

policy or policies specified in Itam 5 of the Attachment hereco which reduces the aggregate limit of such policy or policies below the arount

' ' of financ:al protection, the licensee will promptly2aapply to.his insurers of the Atcach=ent.

a for reinstatement of the amount specified in Ite:and will make all reasonable i (without reference to paragraph b of Ite= 2)In the event that.che licensee has 1 efforts to obtain such reinstate ent.of such amount within ninety days after the not obtained reinstatetent

, date of such reduction, and in the absence of good cause shown.:o che contrary, the Cota ssion may issue an order requiring d

tha licensee tc furnish financial protection for such amount in another for -

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Any obligations of the licensee under subsection 53a(8)

A;t to indenuify the United States and the Cons:ssion frc= pub 1;c j

liability, together with any public liability satisfied by the in-surers under the policy or policies designated in the Attachment hereto, shall not in the aggregate exceed the a=:unt of f:nancial t protection with respect to any nuclear incident, including the reason-

'l able costs of investigating and settling clales and defending suits i -

1 for damage-

4. With respect to any extraordinary nuclear occurrence to which this the Cc==ission, and the licensee on behalf of itself agreement applies, infennified, insofar as their interes:s appear, sa;h and other persons agree to waive any issue or defense as to the conduct of the cla1= ant cr l1

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I tault of persons indeentiled, including, but not 1;mited to i

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(1) negligence; (2) contributory negligence; .

(3) assumption of the risk; O l

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

As used herein, " conduct of the claimant" includes condu,ct of persons

' through whom the claimant derives his cause of action; i

l (b) any issue or defense as to charitable or governmental ic= unity;

(c) any issue or ' defense based on any statute of limitations if suit is instituted within three years frc= the date on which the claimant first knew, or reasonably could have known, of his injury or.

da= age and the cause thereof, but in no' event more than 20 years after the date of the nuclear incident.

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

S. The waivers set forth in paragraph 4_ of this A~riele:

l i (a) shall not preclude a defense based upon a fai;ura to take reasonable steps to =itigate damages; (b) shall not apply to injury or damage to a claimant or to a

' claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrong-

- fully caused by the claimant;-

i~ (c) shall not apply to injury to a claimant who is e= ployed at

' the site of and in. connection with the activity where the extra-ordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any work =en's co=-

pensation or occupational disease law: Provided, however, That with respect to an extraordinary nuclear occurrence occurring at the

[' faci,lity, a claimant who is employed at the facility in c.anection

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

is employed exclusively in connection (1) the with theclaimant construction of a nuclear reactor, including the facility, andall related equipment and installations at (2) no operating license has been issued by the NRC with respect to the nuclear reactor, and (3) the clainant is not employed in connection with the

' possession, storage, use or transfer of nuclear caterial at the facility.

(d) shall not apply to any claim for punitive or exe=plary to any.clain f or wrongful death damages, provided, with respect under any State' law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual dacages, measured by the pecuniary to exceed the maximum injuries resulting from such death but not amount otherwise recoverable under such law; (e) shall be effective only with respect to those obligations set forth in this agreement; (f) shall not apply to, or prejudice the prosecution or defense of, any claim or portion of clain, which is not within the pro-of liability provis tection af forded under (1) the limit of 1954, as amended, and

'l subsection 170e of the Atomic Energy Act (2) the terms of this agreenent and the terms of the nuclear energy

liability insurance policy or policies designated in the attachment hereto.

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

' term of this agreement.

7. Upon the expiration or revocation of any license designated ir Item 3 of the Attachment, the Commission willlicensee with the enter into an reducing of this agreement appropriate amendment il the amount of financial protection required under this Art c e l i provided, thatamount of financial protection under applicable Commission regu and orders.

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8. With respect to any common occurrence:

l (a) If the sum cf the limit of liability of any Nuclear Energy <

P Liability Property Insurance Association policy designated in Item 5 of the Attachment and the limits of' liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Nuclear Energy Liability Property 4 Insurance Association exceeds $108,500,000, the amount of financial protection specified in Item 2a and b of the Attachment shall be deemed j to be reduced by that proportion of the difference between said sum and $108,500,000 as the limit of liability of the Nuclear Energy Liability. Property Insurance Association policy designated in Item 5

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> of the Attachment bears to the Eum of the limits 'of liability of all q

nuclear energy liability insurahce policies (facility for=) applicable H.

- to such common occurrence and issued by Nuclear Energy Liability

] Property Insurance Association.

(b) If the. sum of the limit of liability of any Mutual Atomic Y

o Energy Liability Underwriters policy designated in Item 5 of the 1 - Attachment'and the limits of liability of all other nuclear energy ,

q liability insurance policies .(facility _ form) applicable to such

common occurrence and issued by Mutual Atomic Energy Liability Underwriters exceeds $31,500,000, the amount of financial protection-3 specified in Item 2a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and q

$31,500,000 as the limit of liability of the Mutual Atomic Energy y Liability Underwriters policy designated in Item 5 of the Attachment

-bears to the sum of the limits of liability of all nuclear energy

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liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability li Underwriters; j; (c) If any of the other applicable agreements is with a person who has furnished financial protection in a form other than a nuclear energy liability insurance policy (facility form) issued by Nuclear Energy Liability Property Insurance Association or Mutual Atomic Energy Liability Underwriters, and if also the sum of the amount of finan-cial protection established under this agreement and the amounts of

! financial protection established under all other applicable agreements

exceeds an amount equal to the sum of $140,000,000 and the amount available as secondary financial protection, the obligations of the-licensee shall not exceed a greater proportion of an amount equal to tbc 7

' sum of $140,000,000 and the amount available as secondary financial l{_

i protection than the amount of financial protection established under lr[ this agreement bears to the sum of such amount and the amounts of

! financial protection established under all other applicabic agreements.

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-s-L (d) As used in this paragraph 8, Article II, and in Article III, entered into "other applicable agreements" means each other agreement by the Cc=ission pursuant to subsection 170c of the Act in which i

agreement the nuclear incident is defined as a " common occurrence."

As used in this paragraph 8, Article II, "the obligations of the licensee" neans the obligations of the licensee under subsection 53e(8) of the Act to indemnify the United States and the Cornission j

from public liability, together with any public liability satisfied

' by the insurers under the policy or policies designated in the Attachnent, and the reasonable costs of investigating and settling l .

claims and defending suits for damage.

9. The obligations of the licensee under this Article shall not be l af f ected by any f ailure or def ault on the part of the Con =ission or

[ the Government of the United States to fulfill any or all of its

{ obligations under this agreement. Bankruptcy or insolvency of any

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I person indemnified other than the licensee, or the estate of any person indennified other than the licensee, shall not relieve the f licensee of any.of his obligations hereunder.

ARTICLE III

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1. The Co= ission undertakes and agrees to indennify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.

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2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the Co=ission agrees to pay to such person those sucs which such person would have been obligated to pay if such property had belonged to another; I

provided, that the obligation of the Cocaission under this paragraph 2 J

does not apply with respect to:

(a) Pr perty which is located at the location described in Iten 4

, of the Attachment or at the location described in Item 3 of the ,

declarations attached to any nuclear energy liability insurance policy designated in Item 5 of the Attachment; (b) Property damage due to the neglect'of the person inde=nified 1

to use all reasonable ceans to save and preserve the property after knowledge of a nuclear incident; (c) If the nuclear incident occurs in the course of transportation

[ of the radioactive caterial, the transporting vehicles and containers

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used in such transportation; f The radioactive naterial.

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3. The: Commission agrees to indemnify and hold-harmless the licensee and other persons indemnified as their interest may appear, from the rea'sonabic costs of investigating, settling and defending claims for

[ public liability. .

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i j~ 4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability, such damage to l property of persons legally liable for the nuclear incident (other

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than such property described in the pro'viso to paragraph 2 of this Article),.and such reasonable costs described in paragraph 3 of this l Article as in the aggregate exceed the amount of financial protection.

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1 S (b) With respect to a common occurrence, the obligations of the j Commission under this agreement shall apply only with respect to g

such public liability, such damage to property of persons legally j liable for the nuclear. incident (other than such property described 4 in the proviso to_ paragraph 2 of this Article), and to such reason- I

- able costs described in paragraph 3.of this Article, as in the

. aggregate exceed whichever the following is lower: (1) The l- 4 sum of the amounts of financial protectio'n estab,lished under this agreement and all other applicable agreements; or (2) an amount equal v . to the sum of $140,000,000 and the amount available as secondary financial protection.

I 5. The obligations of the Commission under this agreement shall i apply only with respect to nuclear incidents occurring during the i term of this agreement.

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6. The obligations of the Commission under this and all other

! agreements and contracts to which the Commission is a party shall not, with respect to any nuclear incident, in the aggregate exceed whichever of the following is the lowest: (a) $500,000,000; (b)

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

$560,000,000 less the sum of the amount of financial protection

' established under this agreement and all other applicable agreements.

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7. The obligations of the Commission under this agreement, except

! . to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfi:1 its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified or of the estate of the licensee or any other person indemnified shall not relieve the g' Commission of any of its obligations hereunder.

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ARTICLE IV a'

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![ 1. When-the Cot =ission determines that the United States will .

probably be required to.take. indemnity payments under the provisions.

]~ of this agreement, the Co==ission shall- have the right. co.' collaborate.

q ' with the licensee and.other persons.~inde=nified in the settle =ent.and.

y' defense of any clai= and shall. have. the right. (a) to require the. li prior approval of the Cot =ission for.the settle =ent or pay:ent of.any.c a =

or action asserted against the licensee or other person.inde=nified.

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• for public liability or damage to property _of persons. legally. liable

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'for the nuclear incident which. claim or action the licensee or.the t

Co==ission =ay be required to indemnify under this agree ent;.and.

(b) to appear through the Attorney General-of the United. States. on if behalf of the licensee or other person inde nified, take charge of such action and settle or defend any such action. If the. settlement

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(( cr defense of any such action or clain is undertaken'by the Co =ission, the licensee shall furnish all reasonable assistance in effecting a t

settlement or' asserting a defense.

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2. Neither this agree =ent nor any interest therein nor clain J.

f thereunder may be assigned or transferred without the approval of lj the Co==ission.

ARTICLE V The parties agree that they. vill. enter into appropriate a endments.of this

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l agreement to the extent that such a=endments are required pursuant co the

f Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Co==ission.

ARTICLE VI The licensee agrees to pay to the Co==ission such fees as are. established 4 by the Co==ission pursuant to regulations or orders of the Co==ission.

ARTICLE VII l l . ~ '. -

The tern of this agreement shall consence as of the the datetire.of. and time specifiedof expiration P: ,4 in Ice: 6 of the Attachment and shall ter=inate.at that license specified in Item 3 cf the ' Attachment,.which is. the. lastf to. expire;

,. provided that, except as maythe otherwise be provided in applicable-regulations term of,this agree ent shall not, terminate or orders of the Co =ission, l

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until all the radioactive =aterial has been removed fro = the location and transportation of the radioactive caterial from the location has ended as b.

^ defined in subparagraph 5(b), Article I. Ter=ination of the term of this

. agreement shall not affect any obligation of the licensee or any obligation ll of the Co==1ssion under this agreement with respect to any nuclear incident '

occurring during the term of this agreement.

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ARTICLE VIII

1. If the licensee fails to pay assessed deferred premiun$s, the Commission reserves-the right to pay those premiums on behalf

' of the licensee and to recover the amount of such premiums from the licensee.

,- 2. The Commission shall require the immediate submission of '

1 financial statements by those licensees who indicate, after an j assessment of the retrospective premium by the insurance

' pools, that they will not pay the assessment. Such financial

! statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings. Subsequent submission of financial statements ll by such licensees may be requested by the Commission, as required.

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!) 3. If premiums are paid by the Commission as providea in paragraph

[ l, payment by the Commission shall create a lien in the amount

paid in favor of the United States upon all property and

, rights to property, whether real or personal, belonging to such licensee. The lien shall arise at the time payment is j-

- made by the Commission and shall continue until the liability

. . for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable. The l Commission will issue a certificate of release of any such-I lien if it' finds that the liability for the amount has been fully satisfied or.has become legally uneforceable.

! 4. If the Commission detern.ines that the licensee is financially

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able to reimburse the Commission for a deferred premium payment l made in its behalf, and the licensee, after notice of such determination by the Comm'ssion fails to make suc.h reimbursement

. within 120 days, the Commission yill take appropriate steps to -

, suspend the license for 30 days, 'The Commission may take any further action as necessary if reimbursement is not made

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within the 30-day suspension period including, but not limited to, termination of the operating license.

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UNITED STATES NUCLEAR REGULATORY COMMISSION ATTACHMENT Indemnity Agreement No. B-84 l Item 1 - Licensee Commonwealth Edison Company Address P. O. Box 767 i Chicago, Illinois 60690 Item 2 - Amount of financial protection

a. $1,000,000

b. 'With respect to any nuclear incident, the

. amount specified in Item 2a of this Attachment

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shall be deemed to be (i) reduced to the extent that any payment made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachment reduces the aggregate amount of such insurance policies below the amount specified in Item '2a and

, (ii) restored to the extent that, following such reduction, the aggregate amount of such j insurance policies is reinstated.

I Item 3 - License number or numbers i -

l SNM-1802 SNM-1833 Item 4 - Location I All of the premises including the land and all l buildings and structures of Commonwealth Edison

! Company's LaSalle County Station (including but not limited to Units 1 and 2) shown as being

' within the Protected Area Fence outlined on Commonwealth Edison Company Exhibit A dated May 1, 1978, a copy of which is attached hereto and made a part hereof, j and also including the discharge structure. The LaSalle County Station is located on County Highway

, No. 6 in Brookfield Township in the southeast k corner of Ottawa, 11 miles northeast of Streator t.

and 4 miles west of the Grundy County border.

Item 5 - Insurance Policy No(s) .

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_13-l Nuclear Energy Liability Policy (Facility Form)

No. NF-253 issued by the Nuclear Energy Liability i Property Insurance Association. -

i i Item 6 - The indemnity agreement designated above, of which t

this 12:01Attachment is a.part, iseffectivgas

> f fM day of g f

j j 1978.

a.m., on the- nd

't j'- g 2 i- FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION 1

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Jerome Salt?

man, Chief

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Antitrust & Indemnity Group Nuclear Reactor Regulation-FOR COMMONWEALTH EDISON i COMPANY BY -

dated at hesda, Maryland, Vice-President the 2E day of b M L 1978.

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