ML20215H966

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Forwards Executed Indemnity Agreement B-107 for License SNM-1967
ML20215H966
Person / Time
Site: 07003040
Issue date: 09/19/1986
From: Conway R
GEORGIA POWER CO.
To: Crow W
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
27462, NUDOCS 8610240238
Download: ML20215H966 (15)


Text

I 76-36V6' a

Georgia Power Company EMfc"E*J2%

RETURN TO 396-SS Telephone 404 526-6724 P/a+ng Address-Post Office Box 4545 Attanta Georg'a 30302 R. E. Conway senor vece Pres;ocre September 19, 1986 e

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RECEIVED Mr. W. T. Crow d

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OCT 21986 )F Acting Chief Uranium Fuel Licensing Branch

. <fJUJLIAR REGULATORY f Division of Fuel Cycle and Material

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Washington, D.C.

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Dear Mr. Crow:

Enclosed is a signed copy of Indemnity Agreement Number B-107 in connection with NRC Materials License No. SNM-1967 for Georgia Power Company's Vogtle Electric Generating Plant Unit 1.

If you have any questions or need further information, please contact me.

Yours very truly, R. E. Conway N REC /jcb Enclosure xc:

J. P. O'Reilly all w/caclosure G. Bockhold 1

F. F. Stacy D. L. Stokley V. D. Parrott, Jr.

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E WASHINGTON, D. C. 20555 s,..... gh Docket No. 70-3040 Indemnity Agreement No. B-107 l

This Indemnity Agreement No. B-107 is entgred into by and between Georgia Power Company, O g l e t h o r p e E 1. 't r i c P o w e r C o r p o r a t i o n Municipal Electric Authority of Georgia, City of Dalton, Georgia (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 cut of or resulting from the radioactive, toxic, explosive, er other hazardeus properties of the radicactive 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 dispe.rsed from "the location" as defined in any such other agruement, 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 bi deemed to constitute a single nuclear 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 transportatien" means in the course of transportation within the United States, or in the course of l

transportation outside the United States and any other nation, j

and moving from one person licensed by the Commission to another l

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

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to the location, such transportation is not by predetermination to be interrupted by the removal of the material from the transporting conveyance for _ any purpose other than continuation of such transportatien 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 frem 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 materials (2) claims arising out of an act of war; and (3) claims for loss of, or damage to, or loss of use of (e) 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 reacter or reactors subject to the license or licenses designated in the' Attachment hereto, or-(2) which is l

produced as the result of eperatien of said reactor (s).

I 10.

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

ARTIC*E 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 amcunt specified in Item 2 of the Attach-ment and in the form of the nuclear energy liability insurance salicy

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'. designated in the Attachment. If more than one, license is designated in Item 3 of the Attachment, the licensee agrees to maintain,such financial protection until the end of the term of that licanes which will be the last to expire. The licensee shall, notwithstanding.the expiration, termination, modification, amendment, suspension or revo-cation of any license or licenses designated in Item 3. of the Attach-il all the. radio--

.mont, maintain such financial procaction in effect unt active material has baan removed from the location and transpottazion 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.

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 hereco.which reduces the aggregate limit of such policy or policies below the amount of financial protection, the licansas will promptly apply to. hia. inscrers for reinstatement of the amount specified in Item 2a af. che At:achment.

(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.

obtained reinstatement.of such amount within ninety days after the not date of such reduction, and in the absence of good cause shown.zo zna contrary, the Com=1ssion may issue an order requiring ths.11cenaae c:

furnish financial protection for such amount in another form.

Any obligations of the licensee under subsection 53a(8) of the 3Act to inde=nify the United States and the Commission frem public liability, together with any public liability satisfied by the in-nurers under the policy or peli-ies designated in the Attach =ent hereto, shall not in the aggregate exceed the a=:unt of fina=cial including the reason-protettzen with respect to any nuclear incident, and defsnding suits l

able costs of investigat:ng and sattling clat=4

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for da= age.

With respect to any extraordinary nuclear octuzzence to which this 4.

applies, the Cc==ission, and the licansae on behali of 2tself agree =ent and o:her persons inds=n:f:sd, insof ar as their interests appear, ea.h agree to waive (a) any issue or def ense as to the conduct of the clat= ant er 1 mited to tault of persons inde=ntized, including, but not 3

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(1) negligence; (2) contributory negligence; (3) assumptica of the risk;

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(4) unforseeable intervening causes, whether involving

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

An used herein, " conduct of the claimant" includes conduct of persons through whom the claimant derives his cause of action; (b) any issue or defense as to charitable or government'al immunity; (c) any issue or defense based on any statute of linitations if suit is instituted within three years from the date on which the

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claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof, but in no event more than 20 years af ter the date of the nuclear incident.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or reinting to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the 1

claimant againat the person indemnified.

5.

The waivers set forth in paragraph 4 of this Article:

(a) shall not preclude a def ensa based upon a f ailure to take reasonable steps to =itigste da= ages; (b) shall not apply to injury or da= age to a clai= ant or to a

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

(c) shall not apply to injury to a claimant who is enployed at the site of and in e 3nnection with the activity where the extra-ordinary nuclea.ccurrence takes place if benefits therefor are either payable or required to be provided under any work =en's ce=-

pensation or occupational disease law: Provided, however, That with respect to an extraordinary nuclear occurrence occurring at the faci,lity, a claimant who is e= ployed 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 Commission shall not be considered as employed 'in connection with the actiyit,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 i

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 c1'aimant 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.clain 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 sustair.ed 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 i

set forth in this agreement; i

(f) shall not apply to, or prejudice the prosecution or defense of, any claim er portion of cisin. which is cor eithin the pro-tection aff orded under (1) the limit of liability provisions under subsection 170e of the Atomic Energy Act of 1954, as a= ended, and I

(2) the terms of this agree =ent and the ter=s of the necitar energy liability insurance pelicy or policies designated in the a: tach =ent hereto.

The obligations of the licensee under this agree =ent shall l

6.apply only with respect to nuclear incidents occurring during the l

term of this agree =ent.

Upon the expiration or revocatien of any license designated 7.in ite: 3 of the Actsch=ent, the C==ission will enter into an appropriate a=end=ent of this agree =ent with the licensee reducing the amount of financial protection required under this Art,1cle; the licensee is then entitled to a. reduction in the provided, that amount of financial protection under applicable Co==ission regulations and orders.

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-7 8.

With respect to any coinmon 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 comanon 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 i

comanon occurrence and issued by Mutual Atomic Energy Liability Underwriters; h

(c) If any of the other applicable agreements is with a person who has furnished financial protectico in a-form other than a nuclear energy liability insurance policy (f acility form) issued by Nuclear Energy Liability Property Insurance Association or Mutual Ato=ic Energy Liability Underwriters, and if also the sum of the a= cunt 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 l

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 a=ount of financial protection established under this agreement bears to the sum of such a=ount and the amounts of financial protection established under all other applicable agree =ents.

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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 frem 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 stch person those sums which such person would have been cbligated to pay if such property had belonged to another providsd, that the cbligatien of the Cc= mission under this paragraph 2 does net 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 declaratiens 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 reascnable means to save and preserve the property after kncwledge of a nuclear incident; (c)

If the nuclear incident cecurs 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 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 common occurrence, 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 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 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, 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 or (c) with respect to a common occurrence, $560,000,000 less the sum of the amount of financial protection established under this agreement and all other applicable agreements.

6.

The obligations of the Commission under this agrsement, 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 cbligations 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 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 Ccemission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right:

(a) to require the prior approval of the Ccmmission 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

. 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 commer.ce 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 expires 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 locatien and transportation of the radioactive material frem the location has ended as defined in subparagraph 5(b), Article I.

Termination of the tern 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 f acility designed for producing substantial amounts of electricity and having a rated l

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 charges); Provided, hewever, 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 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.

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2.

The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessmen,t 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 cosatission, 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 financisily 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 Conunission may take any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to, temnination of the operating license.

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UNITED STATES NUCLEAR REGULATORY COMMISSION ATTACHMENT Indemnity Agreement No. B-107 f;T Item 1 - Licensee Georgia Power Company, Oglethorpe :".;J. :c Power Corporation, Municipal Electric Authority of Georgia, City of Dalton, Georgia Address Box 4545 Atlanta, Georgia 30302 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 (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 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 aggccgate amount of such insurance policies is reinstated.

Item 3 - Licensee number or numbers SNM-1967 Item 4 - Location All of the premises including the land, and all of the buildings and structures of Georgia Power Ccmpany's Alvin W. Vogtle Nuclear Plant, 1ccated within both the plant's protected area and the owner secured area on approximately 319 acres and is inclusive of the cooling towers and the entire river intake and discharge structures.

The 230-500 KV switchyard directly north of the main power block and outside of the above referenced 319 acres is also included.

The Alvin W. Vogtle Nuclear Plant is located on the southwest side of the Savannah River, approximately 26 miles southeast of Augusta, Georgia in Burke County, Georgia. The aforementioned description is referenced on the location and vicinity map, figure 1.1-1, amended 9/85, Rev.6 in the FSAR.

Item 5 - Insurance Policy No(s)

Nuclear Energy Liability Policy (Facility Form) NF-302 issued by the Nuclear Energy Liab.ility Property Insurance Association.

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_ Item 6 - The indemnity agreement designated above, of which this Attachment is part is effective as of 12:01 a.m. on the.~2-/#

day of 1986.

FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION kM M

Mme/ Saltzman, Assis nt Director State and Licensee Rp ations Office of State Programs Dated at BethejLda, Marylan the d 9 -/ " X day of 7 1986.

Y FOR GEORGIA POWER COMPANY FOR OGLETHORPE Et994WC POWER CORPORATION BY h

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