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a Di.R CTE-Docket lio. 50-205 OC74 1963
- w. Arthur asumen 850 Lynch taan Petaluma, California
Dear Mr. Bauman:
10, 196'3 addressed to Chairman This replies to your letter of August Seaborg in which you saked several questions concerning the licens.
ing and operation of mustear power reactors, particularly as comoerns' the reactor proposed for construction at Bodega Head.
You are correct in your understanding that a nustear power reactor l
I However, the.
will not explode in the amener of a suolear weapon.
possibility of a release of fission products to the environment-l through other mechanisms is a estter of primary eencern tu the Com-i mission's safety determination respecting nuetear power reactor. s.
Although there are several barriers engineered into the design of -
nuclear power reactors to prevent releases of fission products, each applicant for a construction permit and 11eense la required to postu.
late the msxinum credible socident for the proposed roaster at the This hypothettest accident might involve some release proposed site.
In some esses, however, no of fission products to the environment.
The Commission would not release to the environment would result.
license the construction of a reactor if the likalthood or magnituda of the postulated release would result in an unacceptable risk to the The fa11ers of safeguards beyond those-public health and safety.
failures postulated in conneetten with the assima credible accident would, by definition, be incredible.
Relative to your question s'to.what might,have hayNmed had the pro =
a posed reactor been, standing at Shepje when an earthquake destroyed that city recently, that goestien relates to the above paragraph con.
corning determination of the nazissus credible accident.
With respost,to the matter of insurance, we assume that the reference Under the in your lett.er. relates to publio liability insurance.
Atomic Energy Act of 1954, as ammaded, all reactor licensees except v
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l Federal Agencies and nonprofit educational institutions, are required I
to provide proof of financial protection against pubito liability claims arising out of a nuclear incident. Such proof 15 usually, sub -
i mitted in the form of nuclear energy liability insuranca obtainable l
from the private insurance industry. 'For power reactors the amounts i
of financial protection required are determined by power level and loostion of the particular reactor, in accordance with the Comatasion's regulation,10 CFR Part 140, " Financial Footection Requirements and Indemnity Agreements", a copy of which is enclosed. The law requires that for power reacters having a power level of 100 electrical mega.
I watts or more, the amount of financial protection shs11 be the maximum amount available from private sources. _ At the present time, the maxi-mum amount privately available is $60 million.
I For licensed reactors for which financial protection is required as described above, the Coasdssion is required by the Atomic Energy Act of 1954, as assaded, to indematfy the licenses and any other person who may be less11y liable asalmet public liability claims arising out of a nuclear facident. The severnment indemnity is in addition to the underlying financial protecties, but not la excess of $500 million per incident.
Sincerely yours, Orb!n! Ciped by I
I Ehcr IL Price Eber R. Price Assistant Director Division of Licensing and Regulation Enclosuret 10 CFR Part 140 Distribution:
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REMARKS:
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