ML20234D739
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.F Docket tio. 50-205 6
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QDL163963'
~~T Mr. Daniel T. Ruggles 290 Chase Street Sonoms, California Dear Mr. Ruggles
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This replies to your postcard addressed to President. Kennedy
.- -y in which you expressed concern reistive'to.the proposed con.
struction of a nuclear power reactor at Bodega Bay, California.
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- ty Enclosed is a pamphlet which describes the procedures relating j
to the licensing of power reactors by the Atomic Energy Commis.
sion. Ehe Commission believes that its responsibilities for protection of pubite health and safety in the regulation and b
licensing of austaar reactors are paramount and overriding.
-.b4 local soning, conservation and the esthetics of the site are
.@- D not within the jurisdictica of the Atomie gasrgy Commission and, M
therefore, are not considered in the evaluation of an applica.
tion.
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~ J ES With respect to the matter of financist responsibility, we es.
fy sume that the reference in your postcard relates to pubite M
liability insurance. Under the Atomic Emersy Act of 1954, as 7
amended, all reactor licensees, except Federsi agencias sod p:.
nonprofit educational institutions, are required to provide proof d
of financial protection against public liability claims arising out of a nuclear incident. Such proof 18 usually in the form of nuclest energy 11 ability insurance obtainable from the private n
insurance industry. For power reactors the amounts of financist protection required are determined by pouer level and location of the particular reactor, in socordance with the Commission's regulations tu 10 CFR Part 140, a copy of which is enclosed. The 4
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j Mr. Daniel T. Ruggles
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law requires that for power reactors having a power level of 100 electrical sesswatta or more, the amount of financist pro =
teettoa shall be the maximum amount available from private At the present time the naziansa amount privately sources.
available is:$60 million.
For licensed reactors for which 'financist protection is required L
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as described above, the Coomaission is required by the Atomic:-
Energy Act to indemnify the licensee and any other person do usy; be legally liable assinst public liability claims arising out of a nuclear incident. - The government indemnity is in ' addition to l
the underlying finanetal protection, but not in eseems of $500:
l million per incident.'
l sincerely yours,'
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Eber R. Price.
Assistant Direster Divisica of Licensing
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Enclosurest 1.
10 CTR Part 140 hrsiy 2.
Pamphist
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DISTRIBUTION:
Formal Supplemental
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Public Document Room (2) 3 G. Hadlock, OGC
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,s, 1rorm ABC-318 (Rev.943)
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