ML20210D798
| ML20210D798 | |
| Person / Time | |
|---|---|
| Site: | 07003016 |
| Issue date: | 01/14/1987 |
| From: | Goldberg J HOUSTON LIGHTING & POWER CO. |
| To: | Crow W NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| 27790, NUDOCS 8702100164 | |
| Download: ML20210D798 (16) | |
Text
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76-36/h IETURN TO 396-SS The Light Company n.,,,si,,,, u iiii,,x x
u,, m m u,,x n on n.,,,si.,,. w,s,,oni m u m n January 14, 1987 b
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W T Crow, Acting Chief Uranium Fuel Licensing Branch RECENED
.c Division of Fuel Cycle and Material Safety
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i.J Washington, D.C.
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Dear Sir:
Enclosed you will find a fully executed copy of indemnity agreement B-108 which has been signed by the authorized representatives of each of the four owners of the South Texas Project.
Also attached you will find a list of suggested modifica-tions to the indemnity agreement which we feel will eliminate a number of minor discrepancies.
1 We have also provided a copy of both the fully executed indemnity agreement and the suggested modifications to each of the owners.
1 1
Sincerely, J H Goldberg Group Vice-President, Nuclear l
JHG/aks Enclosures cc Messrs T V Shockley A vonRosenberg J'
M B Lee 8
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ATTACHMENT A 1.
.In the third and fourth lines of subparagraph 3(b) of Article I (Page 2), the phrase, "or loss of or damage to property" appears two times; one immediately after the other.
2.
In the first line of paragraph 6 of Article I (Page 3),
.the quotation marks following the defined term, " Person indemnified" have been omitted.
l 3.
In the ninth line ot subparagraph 5(c) of Article II (the second line on Page 6), reference is made to the
-" Atomic Energy Commission" rather than the " Nuclear Regulatory Commission".
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4.
In the first and second, the fifth and sixth, and the ninth and. tenth lines of subparagraph 8(a) of Article
.II-and in the third and fourth lines of subparagraph 8(c) of Article II (all on Page 7), reference is made l
to the " Nuclear Energy Liability Property Insurance l
Association" rather than the " Nuclear Energy Liability Insurance Association".
In this connection, we note l
what is believed to be the correct reference to this entity (that is, the " Nuclear Energy Liability Insur-ance Association") is shown in Item 5 of the Attachment to-said Indemnity Agreement No. B-108.
5.
In the last line of paragraph-1 of Article IV (the seventh line on Page 10), the word "affecting" appears in lieu of the word, " effecting".
1 i
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- g UNITED STATES NUCLEAR REGULATORY COMMISSION d
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wasHWGToN, D. C. 20065 Docket No. 70-3016 Indemnity Agreement No. B-108 This Indemnity Agreement No. B-108 is entered into by and between Houston Lighting and Power Company City Public Service Board of San Antonio, Texas Central Power and Light Company The City of Austin (hereinafter referred to as the " licensee") and the United States Nuclear Regulatory Cosetission (hereinafter referred to as the "Cosetission") pursuant to subsection 170c of the Atomic Energy Act of 1954, as amended (hereinafter referred to as "the Act").
ARTICLE I l
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 Atcetic Energy Act of 1954, as amended, and the l
regulations issued by the Comunission.
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 7
l specified in Item 2a. and b. of the Attachment annexed hereto, as modified by paragraph 8, Article II, with respect to comanon 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 exctpt where otherwise specifically provided, " amount of financial protection" means the amount specified in Item 2a. and b., of the Attachment annexed i
l hereto, as modified by paragraph 8, Article II, with respect to common occurrences.
3.
(a)
" Nuclear incident" means any occurrence, including an extra-
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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 l
loss of or damage to property or loss of use of property, arising l
out of or resulting from the radioactive, toxic, explosive or other hazardous properties of l
i.
The radioactive material discharged or dispersed from the location over a period of days, weeks, months or longer,
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and also arising out of such properties of other material i
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 l
agreement, or 11.
The radioactive material in the course of transportation and also arising out of such properties of l
other material defined in any other agreement entered into l
by the Commission pursuant to subsection 170c or k of the i
Act as the " radioactive material" and which is in the course l
of transportation..
shall be deemed to be a cosmon occurrence. A cosmon occurrence shall be deemed to constitute a single nuclear incident.
l 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 i
to be interrupted by the removal of the material from the transporting conveyance for 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 transportatica 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 Comunission 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 cccurs 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 materials (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 i
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 I
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 l
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-j 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 maintata such financial protection until the'and of the term of that license which will be the last to expire. The licensee shall, notwithstandtag.the expiration, tsrmination, modification, amendment, suspension or revo-cation of any license or licenses designated in Item 3.of the Attach-aintain such ff== M protection in effect until-all the. radio- -
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. men, m active 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, or until the Commission authorisas. the.
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 Attachment hereto..which
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reduces the aggregate limit of such policy or policies below the amount of financial protection, the licenses will promptly apply to.his. insurers i
for reinstatement of the amount specified.in Item 2a of the Attachment.
(without reference to paragraph b. of Item 2) and will make all. reasonable In the event.that.the licensee.has efforts to obtain such reinstatement.
not obtained reinstatement.of such amount within ninety days after the l
date of such reduction, and.in the. absence of good cause shown.zo sna contrary, the Commission may issue an order requiring tha.1scensas.se furnish financial protection for such amount in another form.
Any obligations of the licensee under subsection 53a(g) of the 3Act to indemnify the United States and the Commission.frca pub 12c liability, together with any public liability satisfied by the 2n-surers under the policy or policies designated in the Attachment hereto, shall not in the aggregate exceed the amtunt of. financial including the reason-I protettion with respect to any nuclear incident, able costs of investigating and settling claims and defending suits for damage.
With respect to any extraordinary nutlear octuzzence to which this 4agreement applies, the Ccamission, and the licensee on behalf.of itself and other persons indemnified, insofar as their interests appear, se;h agree to waive (a) any issue or defense as to the conduct of the claimant cr tault of persons indemnlized, including, but not heited to e
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(1) negligence; (2) contributory negligence; (3) assumption of the risk; (4) unforseeable intervening causes, whether involving
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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 defense based on any statute of limitations 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 l
damage and the cause thereof, but in no event more than 20 years af ter I
the date of the nuclear incident.
f The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall 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:
(a) shall not preclude a defense based upon a failure to take reasonable steps to mitigate 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;-
(c) shall not apply to injury to a claimant who is employed 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 workman's com-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
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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 Coussission shall not be considered as employed'in connection with the acciyity where the extraordinary nuclear occurrence takes place if:
a (1) the claimant is employed-exclusively in connection with the construction of a nuclear reactor, including all
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l related equipment and installations at the facility, and (2) no operating license has been issued by the Imc with respect to the nuclear reactor, and (3) the el'ainant is not employed in connection with the possession, stcrage, 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 fer wrongful death under any State' law which provides for damages otly punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary
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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; I
(f) shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim, which is not within the pro-taction 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 agreement 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.
i in Item 3 of the Attachme.nt, the Commission will enter int's an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided, that the licensee is then entitled to a. reduction in the amount of financial protection under applicable Commission regulations and orders.
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With respect to any coisson 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 stat l
~J and $124,000,000 as the limit of liability of the Nuclear Energy i
Liability troperty 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 c'oanon occurrence and issued by Nuclear Energy Liability l
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 i
l liability insurance policies (facility form) applicable to such common occurrence and issued by htual 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 l
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 f
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 obligatioes 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,
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.together with any public liability satisfied by the insurers under the i
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 j
affected by any failure or default on the part of the Commission or the i
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.
i ARTICLE III l-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 persen legally liable for the nuclear incident, the Cosmiission agrees to pay such person those sums which such person would have been C
obligated to pay if such property had belonged to another provided,
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that the obligation of the Commission under this paragraph 2 does not i
apply with respect to:
1 (a)
Property which is located at the location described in Item 4 of i
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 (b)
Property damage due to neglect of the person indemnified to use l
all reasonable means to save and preserve the preperty after knowledge of a nuclear incidents (c)
If the nuclear incident occurs in the course of transportation of l
the radioactive material, the transporting vehicles and containers used in such transportation (d)
The radioactive material.
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(a) The obligations of the Comunission under this agreement shall apply only with respect to such 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 the amount of financial protection.
(b) With respect to a conunon occurrence, the obligations of the i
Comunission under this agreement shall apply only with respect to such 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 lower (1) The sum of the amounts of financial protection established under this agreement and all other applicable agreements; or (2) an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection.
4.
The obligations of the Ceaunission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.
5.
The obligations of the Comunission under this and all other agreements and contracts to which the Comunission is a party shall not, with respect to any nuclear incident, in the aggregate exceed whichever of the following is the lowests (a) $500,000,0003 (b) _$560,000,000 less the amount of financial protection required under this agreements j
or (c) with respect to a coannon occurrence, $560,000,000 less the sum of the amount of financial protection established under this agreement and all other applicable agreements.
6.
The obligations of the Comunission 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 fulfill 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 Comunission of any of its obligations hereunder.
ARTICLE IV 1.
When the Comunission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Coaunission 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 available to pay public liability claims is ur.ed for these purposes) and shall have the rights (a) to require the prior approval of the Coaunission 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
1
. 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 Commissit a 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 sdbstantial 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 for deferred premium
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charges); Provided, however, that under such a plan for deferred B
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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 l-single nuclear incident nor exceed $10 million within one calendar year. If the licensee fails to pay assessed deferred premiums, the Comunission reserves the right to pay those premiums on behalf of j
j the licensee and to recover the amount of such premiums from the licensee.
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2.
The Commission shall require the inanediate 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, j
as a minimum, exhibits indicating internally generated funds from l
operations and accumulated retained earnings. Subsequent submission of financial statements by such licensees may be requested by the Cosetission, as required.
3.
If premiums are paid by the Commission as provided in paragraph 1, payment by the Comunission 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 Comunission 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 Comunission 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 Ceaunission determines that the licensee is financially able to reimburse the Comunission 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 Comunission 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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.,_,.s UNITED STATES, NUCLEAR REGULATORY COMMISSION ATTACHMENT INDEMNITY AGREEMENT NO. B-108 Item 1 -
Licensee - Houston Lighting and Power Company, City Public Service Board'of San Antonio, Texas Central Power and Light Company The City of Austin.
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 - 1972 Item 4 - Location - All of the premises including the land and structures of.the South Texas Project (including-Units 1 and 2) situated on a site consisting of approximately-12,300 acres and-located in southwest Matagorda County,-
approximately 12 miles south - southwest of Bay City and 10 miles north of Matagorda Bay.
Item 5 - Insurance Policy No.(s)
Nuclear Energy Liability Policy (Facility Form) No. NF-307 issued by.the Nuclear Energy Liability Insurance Association.
Item 6 - The indemnity agreement designated above, of which this Attachment is a part effecti e as of 12:01 a.m, on the 2A/94 day of g
1986.
F HE U. S. NUCLEAR REGULATORY COMMISSION
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d Darrel Nash, Acting Assistant Director State and Licensee Relations Office of State Programs
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\\&g*t Accepted January 7, 1987
, 1986-Accepted jaV - 4
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HOUSTON LI6HTING QD POWER COMPANY CITr >JBLIT'S _RVICE BOARD OF SAN ANTONIO, TEXAS Accepted
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&;b By k rn CENTRAL POWER AND LIGHT MPANY TfiE CITY OF AUSTIN
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Dated at Bethesd&, Marylan the 2 ff-4 day of a v A 1986.
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