ML20138P929

Forwards 850807 Executed Indemnity Agreement B-91. Item 4-Location Should Be Revised to Conform W/Listed Liability Insurance Policy

ML20138P929
Person / Time
Site:	07002947
Issue date:	10/23/1985
From:	Spangenberg F ILLINOIS POWER CO.
To:	Crow W NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
25942, L05-85(10-23)-L, L5-85(10-23)-L, NUDOCS 8511140104
Download: ML20138P929 (14)

Text

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U-600294 L05-85(10-23)-L 1A.120 RETURN TO' 396-55 mgi ILLINDIS POWER COMPANY -

CLINTON POWER STATION P.O. 80x 678. CLINTON, ILLIN0ls 61727 October 23,1985 (O

Docket No.-70-2947 g3 A

Office of Nuclear Material Safety and Safeguards 6 Attention: Mr. W. T. Crow, Acting Chief QQg g

Uranium Fuel Licensing Branch p

Division of Fuel Cycle and Material Safety OCT 2 81985 >

U. S. Nuclear Regulatory Commission C 0.S.NUCLEARREGULATORfh Washington, DC 20555 7.,

com.t:ssica r;Ms3 uan section

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Subject:

Clinton Power Station y

SNM-1886 Indemnity Agreement No. B-91

Dear Mr. Crow:

Please find attached'the executed Indemnity Agreement No. B-91 as required for NRC Materials License No. SNM-1886 dated August 7, 1985.

Also, Illinois Power Company would-like to advise you that " Item 4-Location" should be revised to conform to our Liability Insurance policy. This wording should read:

"All Real and Personal Property, except for those facilities known as the dam, Visitors Center and marina as insured by the Named Insured's other property insurance coverages, located within the boundaries of the site location consisting of land areas bounded by the station boundary lines as shown in Figure 2.1-2 of the Clinton Power Station Final Safety Analysis Report, all located about six (6) miles east of the City of CLINTON in DEWITT COUNTY, east-central Illinois."

Pleae* contact us if you have any question on the matter.

' Sincerely yours, g

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F. A. S ngeberg C

Manager - Licensing 6-OCT 2 8 g y g and Safety 2

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-cc:.B. L. Siegel, NRC Clinton Licensing Project Manager

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Regional Administrator,_ Region III,'USNRC.

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Illinois Department of Nuclear. Safety E

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j Docket No. 70-2947 Indemnity Agreement No. B-gl This Indemnity Agreement No. B-91 is entered into by and between Illino-s Poweh 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 refstred 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 comon 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).

t (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 tie course of transportation causing bodily injury, sickness, disease, or death, or loss of or damage to property, or loss cf use of property, arising out of or resulting from the radioactiv t,- toxic, explosive, or other hazardous properties of the redioactive material.

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b (b) Any occurrence, including an extraordinary nuclear e.

occurrence, or series of_ occurrences causing bodily injury,.

F sickness, disease, or death,L or _ loss of or damage to property, or

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- loss of or; damage to property _ or loss of use. of property, ~ arising _

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out of, or resulting from the radioactive, toxic, explosive or other hazardous properties lof 1i G1 i.=

The radioactive material discharged or. dispersed from p-the~ location over a period of days, weeks, months or longer, and' also arising out of_ such properties of other material' j,

defined as "the radioactive material" in any'other agreement r

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.

I agreement, or c-ii.-- The radioactive material iri the course of'

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transportation and also arising out of such properties of other material defined in-any other agreement' entered'into

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by the Comunission pursuant to subsection 170c or k of the '

Act as the " radioactive material" and which is Jin the course of transportation..

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shall be deemed to be a common occurrence. A common occurrence shall be deemed to constitute a single _ nuclear Lincident.

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

l' 5.

"In the course of-transportation" means:in'the course'of:

transportation within.thefUnited States, or'in the. course _of-I' transportation outside the United. States and'any other nation, and moving from one person' licensed byJthe.ca==ission to another g

. person ' licensed by the Commission? including handling' or '

q temporary storage incidental thereto,':of the' radioactive material.

s to the location or'from the. location'provided thati f

(a) With respect to transportation 'of the' rad' oactive material' i

i to'the-location,isuch transportation?is not by predetermination

to be interrupted by! the removal' of' the material from the =

1 transporting l conveyance:for.'any purposefother than-continuation 1 j',

=of such transportationitolthe location or;temporaryfstorage

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..'(b) lTheltransportation of the radioactive material from:the"

location shall' be deemed 'to-end when the;radi6 active' mate'rialiis 7 '

g removed from the transporting" conveyance for any purpose lother-than-the_ continuance of-transportation or temporaryc torage; s

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"In the course of transportation" as used in this agreenent 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 wars 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 scurce, 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 Item 2 of the Attach-ment and in the form of the nuclear energy liability insurance policy B-

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

in Item 3 of the Attachment, the licensee agrees to maintaan such financial protection until the end of the term of that license which The licensee shall, notwithstanding.the will be the last to expire.

expiration, termination, modification, amendment, suspension or revo-cation of any license or licenses designated in Item 3.of the Attach-l ll the. radio-

. ment, maintain such financial protection in effect unti -a active material has baan removed from the location and' transportation c

of the radioactive material from the location has ended as. defined. in subparagraph 5(b), Article I, or until the Commission authorizes. che The termination or the modification of such financial protection Commission will not unreasonably withhold such authorization-In the event of any paynant by the insurer or insurers under a 2.policy or policies specified in Item 5 of the Attach =ent hereto.which reduces the aggregate limit of such policy or policies below the amount of financial protection, the licenses will promptly apply en his. insurera i

for reinstatement of the amount specified in Item 2a of the Attachment reference to paragraph b of Item 2) and will make all reasonable (without In the event that the licensee has efforts to obtain such rainstatement.

not obtained reinstatement.of such amount within ninety days after the date of such reduction, and. in the absence of good cause shown. to tna contrary, the Com=1ssion may issue an order requiring the licenses tc furnish financial protection for such amount in another fors i

Any obligations of the licensee under subsection 53a(8) of the 3Act to indemnify the United States and the Commission frca public 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 satunt of financial including tha reason-protection with respect to any nuclear incident, able costs of investigating and settling claims and defending suits for da= age.

With respect to any extraordinary nuclear octustance to which thia 4

applies, the Cc= mission, and the licensee on behalf of itself agreement and other persons indemnified, insofar as their interests appear, ea.h i

agree to waive (4) any issue or defense as to the conduct of the claimant ce tault of persons indemnified, including, but not limited.co B

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(1) negligence; (2) contributory negligence; (3) assumption of the risk; a

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(4) unforseeable intervening causes, whether involving

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i the conduct of a third person or an act of God.

4 As used herein, " conduct of the claimant" includes conduct of persons through whom the claimant derives his cause of action; 5

(b) any issue or defense as to charitable or governmental i

immunity; 7

(c) any issue or defense based on any statute of limitations if l

' suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his injury or 1

1 damage and the cause thereof, but in no event more than 20 years af ter l

the date of the nuclear incident.

The waiver of"any such issue or defense shall be effective regardless

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of whether such issue or def ense may otherwise be das=ed jurisdictions 1 l

. or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the i

claimant against the person indemnified.

5.

The waivers set forth in paragraph 4 of this Articles (a) shall not preclude a defense based upon=a failure to take l

reasonable steps to mitigate damages; l

(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-l fully caused by the claimant;-

(c) shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where tho' extra--

ordinary nuclear occurrence takes place. if benefits therefor are i

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. either payable or required to be provided under any workmen's con-pensation or occupational disease' law: Provided, however, That with respect to an extraordinary nuclear occurrence occurring at the faci,11ty, a claimant who is employed at the facility in connection i

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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 shall not be considered as employed 'in connection with the activit,y 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 t

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 the claimant is not employed in connection with the

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(3) 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 damages 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 free 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 agreemer.t; (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.

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

Upon the expiration or revocation of any license designated 7.-

in Item 3 of the Attachment, the Co= mission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; the licensee is then entitled to a. reduction in the provided, that amount of financial protection under applicable Commission regulations and orders.

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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 i

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 l

to be reduced by that proportion of the difference between said sism and $124,000,000 as the limit of liability of the Nuclear Energy i

t Liability troperty Insurance Association policy designated in Item 5 of the Attachment bears to the sum of the limits of liability of all nucisar energy liability insurance policies (facility form) applicable l

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 conson 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 l

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 i

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-l 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 agreement 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 indemnify the United States and the Commission from public liability, -

' together with any public liability satisfied by the insurere under the policy or policies designated in the Attachment,_and the reasonable costs incurred by the insurers in investigating and settling claims and is 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

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indemnified other than the licensee, or the estate of any person indemnified other than the licensee, shall not relieve the licensee of l.

any of his obligations hereunder.

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ARTICLE III L

l 1.

The Commission undertakes and agrees to indemnify and hold harmless L

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, i

that the obligation of the' Commission under this paragraph 2 does not apply with respect to (a) Property which is located at the location described in Item 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 Attachments" l

(b) Property damage due to neglect of the person' indemnified to use all reasonable means to save and preserve the property af ter knowledge of'a nuclear incidents l

-(c)

If the nuclear. incident occurs in the course of transportation of the radioactive' material,:the transporting vehicles _ and containers used in such transportations l

'(d) l The radioactive material.

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(a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and such damage to property of persons legally liable ror the nuclear incident (other than 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 l.

public liability and such damage to property of persons legally liable for the nuclear incident (other than such property described in the proviso to paragraph 2 of this Article, as in the aggregate exceed whichever of the following'is lowers (1) The sum of the amounts of j

financial protection established under this agreement and all other l

applicable agreements; or (2)L an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection.

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 is a party shall not, j

with respect to any nuclear incident, in the aggregate exceed whichever of the followinIg is the lowest; (a) S500,000,0003 (b) $560,000,000 less the amount of financial protection required under.this agreements or (c) with respect to a common occurrence, $560,000,000 less the sum of the anount of financial protection established under this agreement and all other applicable agreements.

6.

The obligations of the Commission under this agreement, except to l

the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptey 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 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 of l

any claim (provided that no government indemnity that would otherwise be

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available to pay public liability claims-is used for.these purposes) and shall have the rights (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 B

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'- which claim or action the licenmee or the commission may be required to indemnify under this agreements.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 i

agreement to the extent that such amendments are required pursuant to the I.

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 pursu' nt to regulations or orders of the Commission.

a l-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 l

incident occurring during the term of this agreement.

l ARTICLE VIII The following provisions are applicable to each licensee operating a facility designed for producing sWbstantial 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 t

in an amount spacified 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 for deferred premium charges); Provided, however, that under such a plan for deferred B

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_ 11 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 S10 million within one caleriar 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. SWbsequent submission of financial statements by-such licensees may be requested by the Commission, as required.

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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 l

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 r

judgment against the licensee arising out of such liability) is l

satisfied br 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

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legally unenforceable.

4.

If the Commission determines that the licensee is financially able to reimburse the Comunission.for a deferred premium payment made in

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its behalf, and the licensee, after notice of. such determination by the Comunission 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

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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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. UNITED STATES NUCLEAR REGULATORY COR11SSION ATTACHMENT Indemnity Agreement No. B-91 Item 1 - Licensee Illinois Power Company Western Illinois Power Cooperative, Inc.

Soyland Power Cooperative, Inc.

Address 500 South 27th Street Decatur, Illinois 62525 l

i Item 2 - Amount of financial protection

-a.

$1,000,000 l

b.

With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (1) reduced to the extent that any payment made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachmant raciucas the aggregate arvjunt of such insurance l

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.

1 Item 3 - License number or numbers SNH-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 i

located on a peninsula of Lake Clinton, about six miles east of the city of Clinton, Dewitt County, in east-central Illinois.

Item 5-InsurancePolicyNo(s).

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

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Item 6 - The indemnity agreement designated above, of which this Attachment is a part is effective as of 12:01 a.m. on the ~7 4 4 day of 1985.

FOR THE UNITED STATES NUCLEAR REGULATORY COMISSION hpw s "2

7 Jerome Saltzran, Ass stant Director State and Licensee' Relations Office of State Frograms l

FOR ILLIN POWE COMPANY t

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FOR WESTERN ILLIN0IS P ER COOPERATIVE, INC.-

BY 8

Robert E. cant, President

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FOR 50YLAND POWER C00 PERATIVE',.INC..+

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