ML20133N780

Unexecuted Indemnity Agreement B-91

ML20133N780
Person / Time
Site:	Clinton
Issue date:	08/07/1985
From:	Saltzman J NRC OFFICE OF STATE PROGRAMS (OSP)
To:
References
B-91, NUDOCS 8508130625
Download: ML20133N780 (13)

Text

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1. o UNITED STATES 8' "h, NUCLEAR REGULATORY COMMISSION h 'a$ WASHINGTON. D. C. 20555

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Docket No. Indemnity Agreement No. B-91 This Indemnity Agreement No. B-91 is entered into by and between Illinois Power Company Western Illinois Power Cooperative, Inc.

Soyland Power Cooperative, Inc.

(hereinafter referred to as the " licensee") and the United States Nuclear Regulatory Commission (hereinafter referred to as the " Commission") pursuant to subsection 170c of the Atomic Energy Act of 1954, as amended (hereinafter referred to as "the Act").

ARTICLE I As used in this agreement:

1. " Nuclear reactor," " byproduct 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. (a) For facilities designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, and except when otherwise specifically provided, " amount of financial 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, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan for deferred retrospective premium charges).

(b) For all other facilities, and except where otherwise specifically provided, " amount of financial 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.

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(b) Any occurrence, including an extraordinary nuclear occurrence, or series of occurrences causing bodily injury, sickness, disease, or death, or loss of or damage to property, 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

i. 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 location" as defined in any such other agreement, or

11. The radioactive material in the course of transportation and also arising out of such properties of other material defined in any other agreement entered into by the Commission pursuant to subsection 170c or k of the Act as the " radioactive material" and which is in the course of transportation..

shall be deemed to be a common occurrence. A common occurrence shall be deemed to constitute a single nucicar incident.

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

5. "In the course of transportation" means in the course of transportation within the United States, or in the course of transportation outside the United States and any other nation, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:

(a) With respect to transportation of the radioactive material to the location, such transportation is not by predetermination to be interrupted by the removal of the material from the transporting conveyance tor any purpose other than continuation of such transportation to the location or temporary storage incidental thereto; (b) The transportation of the radioactive material from the location shall be deemed to end when the radioactive material is removed from the transporting conveyance for any purpose other than the continuance of transportation or temporary storage incidental thereto; l

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(c) "In the course of transportation" as used in this agreement shall not include transportation of the radioactive material to the 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 arising out of or resulting from a nuclear incident, except (1) claims under State or Federal Workmen's Compensation Acts of employees of persons indemnified 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 war; and (3) claims for loss of, or damage to, or loss of use of (a) property which is located at the location and used in connection with the licensee's possession, use, or transfer of the radioactive material, 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.

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

9. "The radioactive material" means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) which is produced as the result of operation of said reactor (s) .

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

ARTICLE II

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

-4 If more than one, license is designated designated in the Attachment.

in Item 3 of the Attachment, the licensee agrees to maintain such 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, smendment, cation of any license or licenses designated in Item 3.of the Attach- -

ment, maintain such financial protection in effect until-all the. radio-t active material has been removed from the location and~cransportation of the radioactive material from the location has ended as. defined in i

subparagraph 5(b). Article I, or until the Commission authorizes.The che termination or the modification.of such financial protection ~

Co= mission will not unreasonably withhold such authorization-

2. In the event of any pay =ent by the insurer or insurers under a policy or polities specified in Item 5 of the Attachment hereto which reduces the aggregate li=it of such policy or policies below the a=ount of financial protection, the licenses will promptly apply to. his. insurers for reinstatement of the amount specified in Item 2a of the Attach =ent.

(without reference to paragraph b of Item 2) and will make all reasonable In the event that.the licensae has efforts to obtain such reinstatement.

not obtained reinstatement.of such a=ount within ninety days after the date of such reduction, and in the absence of good cause shown to tna contrary, the Co==1ssion may issue an ordar requiring tha.11censaa tc furnish financial protection for such a=ount in another fors.

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Any obligations of the licensee under subsection 53a(S) blic Att to inde=nify the United States and the Co= mission frem pu liability, together with any public liability satisfied by the in-surers under the policy or policies designated in the Accachment hereto, shall not in the aggregate exceed the a=sunt of financial to any nuclear incident, including the reason-i protection with respectable :sses of investigating and settling claims and defend l for da= age-(

l With respect to any extraordinary nuclear o:currence to which this 4

agreement applies, the Cc==ission, and the licensee on behalf ofh itself and other persons indemnified, insofar as their interea:s appear, ea.

j agree to waive of the claimant c:

(a) any issue or defense as to the conduct zault of persons indemnified, including, but not limited to B

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

As used herein, " conduct of the claimant" includes conduct of persons through whom the claimant derives his cause of action; (b) any issue or defense as to charitable or governmental immunity; (c) any issue or def ense based on any statute of limitations if suit is instituted within three years frem the date on which the claimant first knew, or reasonably could have known, the date of the nuclear incident. dless The waiver of any such issue or defense shall be effectivedictional regar of whether such issue or defense may otherwise be deemed jurisThe waivers sh or relating to an element in the cause of action.

be judicially enforceable in accordance with their terms by the claimant against the person indemnified.

5.

The waivers set forth in paragraph 4 of this Article:

shall not preclude a def ense based pon a f ailure to take (a) reasonable steps to mitigate damages; shall not apply to injury or damage to a claimant or to a (b)

' claimant's property which is intentionally sustained by the clai= ant or which results from a nuclear incident intentionally and wrong-fully caused by the cla1= ant;- ,

shall not apply to injury to a claimant who is employed h tr a- at (c) the site of and in connection with the activity where t e ex '

ordinary nuclear occurrence takes place if benefits the pensation or occupational disease law: _

respect to an extraordinary nuclear occurrence occur 1

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

(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all -

related equipment and installations at the facility, and (2) no operating license has been issued by the NRC with respect to the nuclear reactor, and (3) the claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility.

(d) shall not apply to any claim for punitive or exemplary damages, provided, with respect to any. claim for. wrongful death under any State' law which provides for da= ages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law; (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 claim which is not within the pro-tection afforded under (1) the limit of liability provisions under subsection 170e of the Atomic Energy Act of 1954, as amended, and (2) the terms of this agreement and the terms of the nuclear energy liability insurance policy or policies designated in the attachment hereto.

6. The obligations of the licensee under this agree =ent 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 in Item 3 of the Attach =ent, the Commission will enter into an appropriate amendment of this agren=ent with the licensee reducing the amount of financial protection required under this Article; the licensee is then entitled to a reduction in the provided, thatamount of financial protection under applicable Commission regulations and orders.

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8. With respect to any common occurrence:

(a) If the sum of the limit of liability of any Nuclear Energy Liability Property Insurance 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 Insurance Association exceeds $124,000',000, the amount of financial protection specified in Item 2a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum ,

and $124,000,000 as the limit of liability of the Nuclear Energy i Liability Property Insurance Association policy designated in Item 5 of the Attachment bears to the sum of the limits of liability of all nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Nuclear Energy Liability Property Insurance Association.

(b) If the sum of the limit of liability of any Mutual Atomic Energy Liability Underwriters policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters exceeds $36,000,000, the amount of financial protection specified in Item 2a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and

$36,000,000 as the 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 to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters; (c) If any of the other applicable agreements is with a person who has furnished financial protection in a form other than a nuclear 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 $160,000,000 and the amount available as secondary financial protection, the obligations of the licensee shall not exceed a greater proportion of an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection than the amount of financial protection established under this agreement bears to the sum of such amount and the amounts of financial protection established under all other applicable agreements.

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(d) As used in this paragraph 8, Article II, and in Article III, "other applicable agreements" means each other agreement entered into by the Commission pursuant to subsection 170c of the Act in which agreenert the nuclear incident is defined as a " common occurrence." As used in this paragraph 8, Article II, "the obligations of the licensee" means the obligations of the licensee under subsection 53e(8) of the Act to indennify the United States and the Comnission from public liability, together with any public liability satisfied by the insurers under the policy or policies designated in the Attachment, and the reasonable costs incurred by the insurers in investigating and settling claims and defending suits for damage.

9. The obligations of the licensee under this Article shall not be affected by any failure or default on the part of the Commission or the Government of the United States to fulfill any or all of its obligations under this agreement. Bankruptcy or insolvency of any person indemnified other than the licensee, or the estate of any person indemnified other than the licensee, shall not relieve the licensee of any of his obligations hereunder.

ARTICLE III

1. The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.

2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the Commission agrees to pay such person those sums which such person would have been obligated to pay if such property had belonged to another; provided, that the cbligation of the Commission under this paragraph 2 does not apply with respect to:

(a) Property 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 neglect of the person indemnified to use all reasonable means 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 material, the transporting vehicles and containers used in such transportation; (d) The radioactive material.

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3. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and such damage (othertothan property of persons legally liable for the nuclear incident such property described in the proviso to paragraph 2 of this Article) as in the aggregate exceed the amount of financial protection.

(b)

With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and such(other damagethan to property such ofdescribed property persons in legally the liable for the nuclear incident proviso to paragraph 2 of this Article, as in the aggregate exceedThe sum of the amoun whichever of the following is lower: (1) financial protection established under this agreement and all otheran amoun applicable agreements; or (2)and the amount available as secondary financial pro 4.

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

5. The obligations of the Commission under this and all other agreements and contracts to which the Commission in the is a party aggregate exceed shall not, whichever with respect to any nuclear incident, (a) S500,000,000; (b) $560,000,000 of the following is the lowest; less the amount of financial protection required under thisless agreement; the sum of or (c) with respect to a common occurrence, $560,000,000 d the amount of financial protection established under this agreement an all other applicable agreements.

6.

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 Bankruptcy to fulfill or insolvency its of the obligations under this agreement.

licensee or any other person indemnified or of the estate of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder.

ARTICLE IV 1.

When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense be of any clain (provided that no government indemnity that would otherwise and available to pay public liability claims is used for these purposes) shall have the right: (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident l

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which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in affecting a settlement or asserting a defense.

2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission.

ARTICLE V The parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission.

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

ARTICLE VII The term of this agreement shall commence as of the date and time specified in Item 6 of the Attachment and shall terminate at the time of expiration of ,

that license specified in Item 3 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in subparagraph 5(b) , Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement.

ARTICLE VIII The following provisions are applicable to each licensee operating a facility designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more;

1. Each licensee is required to have and maintain financial protection in an amount specified in Item 2a and b of the Attachment annexed hereto, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing fer deferred premium charges); Provided, however, that under such a plan for deferred i

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premium charges, such charges for each nuclear reactor which is licensed to operate shall not exceed $5 million with respect to any single nuclear incident nor exceed $10 million within one calendar year. If the licensee fails to pay assessed deferred premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and to recover the amount of such premiums from the licensee.

2. The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the retrospective premium by the insurance pools, that they will not pay the 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 by such licensees may be requested by the Commission, as required.

3. If premiums are paid by the Commission as provided in paragraph 1, payment by the Commission shall create a lien in the amount paid in favor of the United States upon all property and rights to property, whether real or personal, belonging to such licensee.

The lien shall arise at the time payment is made by the Commission and shall continue until the liability for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable. The Commission will issue a certificate of release of any such lien if it finds that the liability for the amount has been fully satisfied or has become legally unenforceable.

4. If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days. The Commission may take any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to, termination of the operating license.

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l L UNITED STATES NUCLEAR REGULATORY COMMISSION i

ATTACHMENT Indemnity Agreement No. B-91 Illinois Power Company Item 1 - Licensee Western Illinois Power Cooperative, Inc.

Soyland Power Cooperative, Inc.

Address 500 South 27th Street Decatur, Illinois 62525 Item 2 - Amount of financial protection

a. $1,000,000

b. With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (i) reduced to the extent that any payment made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachment reduces the aggregate amount of such insurance policies below the amount specified in Item 2a and (ii) restored to the extent that, following such reduction, the aggregate amount of such insurance policies is reinstated.

Item 3 - License number or numbers SNM-1886 Item 4 - Location All of the premises including the land and all buildings and structures of Illinois Power Company's Clinton Nuclear Station, including but not limited to Units 1 and 2, situated on a site consisting of approximately 14,092 acres, the boundaries of said site being set forth in Figure 2.1-2 of the Clinton Power Station Preliminary Safety Analysis Report. The Clinton Power Station is located on a peninsula of Lake Clinton, about six miles east of the city of Clinton, Dewitt County, in east-central Illinois.

Item 5 - Insurance Policy No(s).

Nuclear Energy Liability Policy (Facility Form) No. NF-261 issued by the Nuclear Energy Liability Property Insurance Association.

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j Item 6 - The indemnity agreement designated above, of which,this Attachment

i is a part, is effective as of 12

01 a.m. on the 1985.

(4 day of iI FOR THE UNI D STATES NUCLEAR REGULATORY COMMISSION

/SL HROME SALT 1.m'a Jerome Saltzman, Assistant Director State and Licensee Relations Office of State Programs FOR ILLIN0IS POWER COMPANY ,

l BY FOR WESTERN ILLIN0IS POWER COOPERATIVE, INC.

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FOR S0YLAND POWER COOPERATIVE, INC.

BY Dated at Bethesda, day ofMaryland, A 1985.

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