ML20127P490

Forwards Amend 3 to Indemnity Agreement B-42,increasing Financial Protection Requirements

ML20127P490
Person / Time
Site:	Monticello
Issue date:	02/14/1972
From:	Johnson L US ATOMIC ENERGY COMMISSION (AEC)
To:	Rachel Johnson NORTHERN STATES POWER CO.
References
NUDOCS 9212020234
Download: ML20127P490 (9)

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W h oGG-Docket No. 50-263 00-Indemnity M- - , _m tu t uit Northern States Power Company ATTN Mr. R. C. Johnson General Superintendent Insurance and Property Protection 414 Nicollet Avenue Minneapolia, Minnesota 55401 Contiement Ide are snelosing herewith an amendment to 10 CFR Part 140, Pinancial Protection Requirements and Indeemity Agreements," which vill become effective March 1, 1972. The amendment is being forwarded to the Federal Ref i ster for publication as an effective rule.

This amendment gives effect to the recent increase, from $82 million to $95 million, in available nuclear energy liability insurance pro-vided by Nuclear EnerEy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters. Inasmuch as you are a licensee of a f acility for which the armount of financial protection required under Section 170b. of the Atomic Energy Act of 1954, an amended, and Section 140.11(a)(4) of 10 CPR Part 140, shall be the m%um amount available from private sources, it will be necessary that you suba'it, I

by March 1, 1972, proof of financial protection in the amount of

$95 willion. Such proof may le in the form of endorsements to your nuclear energy liability insuranc.e policies.

An appropriate amendment to your indemnity agreement is currently being prepared and vill be forwarded to you upon receipt of proof of financial protection in the revised amount an stated above, i

Please contact un if you have any questions with regard to the foregoing.

Sincerely.

Original Signed by loatl Johnsoa Lyall Johnson, Director Division of State and

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UNITED STATES

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ATOMIC ENERGY COMMISSION W A%HING10N. O C. 20545

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Docket 16. 50-263 p , ,,, ,,, ..g E N' j AWDMEh7 TO INDEMNITY AGitEEMENT_ No.11-42 AMENDMl?lT NO. 3_

I Ef f ective December 14, 1971 Indemnity Agreement No. B-42 between Northern States Power Company and the Atomic Energy Conninston, dated October 3,1969, an amended, is hereby further amendrd as follows:

Article II la nmended by adding the followinc, provian at the end of subparagraph 5(c):

"_Provided, however, timt with respect to an extraordinary nucicar occurrence occurring at the facility, a claimant who is employed at the f acility in connection with the construction of a nuclear reactor with respect to which no operating license has been innued by the Atomic Energy Conninnion nhall not be considered an employed in connection with the activity where the extraordinary nucicar occurrence taken place if:

(.1 ) the claimant is employed exclualvely in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license han been innued by the Al:C with respect to the nucicar reactor, and (3) the claimant is not employed in connection with the ponnession, storage, une or transfer of nucicar materini at the f acility."

FOR Tile UNITED STATES ATOMIC ENERGY 00MMISSION w ,& _ _ _ _ .

l Ly!11 John on Director Divinfon of S tate and Licennee Relations N,

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Docket No. 50-263 Indemnity Agreement No. B- 42 This Indemnity Agreement No. B-42 is entered into by and between Northern States Power Company (hereinaf ter referred to as the " licensee") and the United States Atomic Energy Commission (hereinafter referred to as the " Commission") pursuant to subsection 170c of the Atomi: Energy Act of 1954, as amended (herein-af ter referred to as "the Act").

ARTICLE I

. As used in this agreement:

1. " Nuclear reactor ," "byproduc t material,' " person," " source material," and "special nuclear material" shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.

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

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

! (b) Any occurrence , including an extraordinary nuclear occurrence,-

l or series of occurrences 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 radioac tive , toxic, explosive, l or other hazardous properties of l

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I 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 Commission pursuant to subsection 170c or k of the Act.

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

7 "Public liability" means any legal liability arisin6 out of or resulting from a nuclear incident, except (1) claims under 8 tate or Federal Workmen's Com:pensation Acts of employees of persons indemni-fled who are employed (a) at the location or, if the nuclear incident occurs in the course of transportation of the radioactive material, on the transporting vehicle, and (b) in connection with the licensee's possession, use or transfer of the radioactive material; (2) claims arising out of an act of var; and (3) claims for loss of, or damage to, or loss of use of (a) property which is located at the location and used in connection with the licensee's possession, use, or trans-fer of the radioactive material, and (b) if the nuclear incident occurs in the course of transportation of the radioactive materia.1, the transporting vehicle, containers used in such transportation,'

and the radioactive material.

8. "The location" means the location described in Item 4 of the l Attachment hereto.

9 "The radioactive material" means source, special nuclear, and byproduct material which (1) is used or to be used in, or is ir-radiated or to be irradiated by, the nuclear reactor or reactors-

j. subject to the license or licenses designa.ted in the Attachment l

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

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

i ARTICLE II

1. At all times during the term of the license or licenses desig-nated in Item 3 of the Attachment hereto, the licensee vill maintain financial protection in the amount specified in Item 2 of the Attach-ment and in the form of the nuclear energy liability insurance policy B

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_3 (1) negligence; (2) contributory negligence; (3) ascumption of the risk; (4) unforeseeable intervening causes, whether involving the conduct of a third person or an act of God.

An used herein, " conduct of the claimant" includes conduct of persons through whom the claimant derives his cause of action; (b) any iccue or defense as to charitable or governmental immunity; (c) any isst9 or defense based on any statute of limitatione if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof, but in no event more than ten years after the date of the nuclear incident.

The vaiver of any such issue or defense chall be effective regardless-of unether such issue or defense may otherwise_ be deemed jurisdictional or relating _to an element in the cause of action. The valvers shall be judicially enforceable in accordance with their terms by. the claimant against the person indemnified.

S. The vaivers set forth in paragraph 4 of this Article:

(a) chall not preclude a defense based upon a failure to take reasonable steps to mitigate damagec; (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 wrongfully -

caused by the claiciant; (c) chall not apply to injury to a claimant who is employed at the t5te or nrd in connection with the activity where the extra-ordinary nuclear occurrence _taken place if . benefits therefor are eitner payable or required to be provided under any workmen's com--

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bears to the sum of the lir.its of liability of all nuclear energy listility insurance policies (facility form) applicable to such cos: mon occurrence and issued by Nuclear Energy Liability Insurance Association; (b) If the eum of the limit of liability of any Mutual Atoctic Energy Liability Undervritere policy des 16nated in Item 5 of the Attachment and the limits of liability of all other nuclee energy liability insurance policien (facility form) applicable to such coraan occurrence and issued by Huttal Atomic Energy Liability Undervritere, exceeds $18,4 50,000, the amount of financial protection specified in Item 2a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and

$ ; 8 ,!. 50 ,003 ao the limit of liability of the Mutual Atomic Energy Liability Underwriters policy designated in Item 5 of the Attachment bears to the sum of the limits of liability of all nuclear energy liability insurance policies (facility form) applicable % such con =on occurrence tad lacued by Mutual Atomic Energy Liability Underwriters; (c) If any of the other applicable agreements is with a person who has furnioned financial protection in a form otner than a nuclear energy liability insurance policy (facility form) issued by Nuclear Energy Liability Incurance Association or Mutual Atomic Energy Liability Underwriters, and if also the num of the amount of finan-cit.1 protection established under this agreement and the amounts of financial protection established under all other applicable agreemente exceedo $s2,000,000, the obligations of the licensee anall not exceed

t. greater pmportion of $S2,000,000 than the amount of financial pro-tection established under this agreement bears to the sum of cuch cutount and tne amounto of financial protection established under all other applicable agreemente..

(d) Ac used in this paragraph 0, Article II, and in Article III, "other applicable agreements' means each other agreement entered into by the Ccx::miccion pursuant to subsection 170c of the Act in whieb r#reensent the nuclear incident is defined as a "cocuon occurrence."

As used in thin paragraph 0, Article II, "the obligations of the licencee" meau the oD11Eationc of the licensee under subsection M. (b) of th Act to indemnify the United States and the Commission frce public liability, together with any public li'a bility eatisfied B

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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 reasonable costs of investigating, settling and defending claims for public liability.

k.(a) The obligations of the Cocaission under this agreement shall apply only vath respect to such public liabilsty, such damage to property of pereons legally liable for the nuclear incident (other than such property described in the proviso to peregraph 2 of this Article), and such reasonable costa described in paragraph 3 of this Article as in the aggregate exceed the amount of financial protection.

(b) With respect to a common occurrence, the obligstions of the Commission under this agreement shall apply only with respect to such J public liability, such damage to prcgerty of persons legally liable for the nuclear incident (other than such property described in the proviso to paragraph 2 of this Article), and to such reasonable costa described in paragrapn 3 of this Article, as in the aggregate exceed whichever of the following is lower: (1) The sum of the amounts of financial protection established under this agreement and all other applicable agreements; or (2) $82,000,000.

5 The obligations of the Commiraion under this agreement shall apply ,

only with respect to nuclear incidents occurring during the term of this agreement.

6. The obligations of the Commission under this and all other agreements and contracts to which the Commission is a party shall not, vita respect to any nuclesr incident, in the aggregate exceed whichever of the following is the lowest: (a) $500,000,000; (b) $560,000,07) less the amount of financial protection required under this agreement; or (c) with respect to a common occurrence,

$%0,000,000 less the rum of the amounts of financial protection establiehed under this agreement and all other applicable agreements.

7 The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the paa t of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified or of the este.te of the licensee er any other person indemnified shall not relieve the Commicsion of any of its obligations hereunder.

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UNITED STATES ATOMIC ENERGY C0Y3.1SSION ATTACIDZNT Indemnity Agreement No. B-42 Item 1 - Licensee Northern States Power Company Address 414 Nicollet Mall Minneapo.is , Mint. esc i 5 54 0 ~.

Item 2 - Amount of financial protection

a. $1,000,303.

'o . With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (i) reduced to tne 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 belou the amount specified in Item 2a and (ii) restored to the extant that, following such reduction, the aggregate amount of such insurance policies is reinstated.

Item 3 - License number or numbers S101-1144 o

Item 4 - Location -

Tne fenced switchyard at tne Monticello Nuclear Generatin: Pl ant.

which is located on the west bank of the Mississippi River approximately three miles northwest of Monticello in Wright County, Minnesota.

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