ML20235V136

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Forwards Kentucky/Nuclear Engineering Co Agreement,Schedule of Charges & Last Reimbursement Contract,All
ML20235V136
Person / Time
Issue date: 05/31/1978
From: Kerr G
NRC OFFICE OF STATE PROGRAMS (OSP)
To: Bell M
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
Shared Package
ML20235U845 List:
References
FOIA-87-235 NUDOCS 8707230070
Download: ML20235V136 (21)


Text

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/psn .Tec 'o UNITED STATES 8 ),c ' ,j NUCLEAR REGULATORY COMMISSION i l 5 J.; - .E WASHINGTON. D. C. 20555 I o 7~ t

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    • "* gay a i 1978 I l I l Ref: SA/GWr, MEMORANDUM FOR: Michael J. Bell, Chief l Low Level Waste Branch, NMSS 1

FROM: G. Wayne Kerr, Assistant Director for State Agreements Program J Office of State Programs

SUBJECT:

KENTVCKY AGP.EEMENTS Attached for your information are copies of the following documents: I

1. Ky-NECO agreement dated May 22, 1978
2. Schedule of Charges, Last Reimbursement Contract, May 22, 1978 )
3. Last Reimbursement Contract, May 22, 1978

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/G.WayneKerr,AssistantDirector for State Agreements Program l

Office of State Programs

Enclosure:

As stated l

cc: R. Ryan, w/ encl F. Swanberg, w/enci

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AGREEMENT (W! f/ "/ N t 3 V

P A R TIE S TO THIS AGREEMENT _ 2 IOj)}' r, ,d j ".; D! '-

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The parties to this Agreement are: \

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1. The Commonwealth of Kentucky (Commonwe 37;rg16 i

acting by and through its Executive Department for Finance and  !

A<hninistration, and Departmen'. for 11uman Resources.

l 2. Nuclear Engineering Company, Inc. (NECO), a California corporation, with its principal place of business in the l )

l Commonwealth of Kentucky, acting by and throagh a principal officer who verifies, by his signature hereto, that he is authorized by the 1 l

i corporation to enter into this Agreement.

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THE PURPOSE OF THIS AGREEMENT The purpose of this Agreement is to terminate the existing and past relationships between the Commonwealth and NECO as related to the operation of the Maxey Flats Low Level Waste Disposal Facility in Fleming County, Kentucky and to provide the expertise to the Commonwealth which is r'equired to propertly maintain the Maxey j

Flats facilit f.

THE CONSIDERATION FOR Tills _A__GREEMENT The consideration for this Agreement on the part of KECO is the payment to it of such amounts as are found to be due to it by Marcha11 L Stevens, Inc. , Appraise rs and Valuation Consultants,

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S t. Loui s, Mis souri, and the receipt by NECO of such other considerations as set forth her~ein.

The consideration on the part of the Cornmunwealth is the termination of any and all existing Leases, Licenses, Contracts and Agreements whatsoever between it and NECO which, without further action on the part of either party to this Agreement, shall i

automatically terminate upon payment to NECO of the amount found to j l

be due by Marshall & Stevens, Inc. minus the considerations provided )

NECO as set forth hereit..

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THE CONSIDERATIONS WHICH SHALL BE TAKEN INTO ACCOUNT BY MARSHALL & STEVENS, INC.

, ._f The Appraisal of Marshall & Stevens, Inc. shall be predicated upon the following terms, conditions, circumstances and projections:

1. The value in use of equipment and vehicles located at the Maxey Flats Site, excluding the Lima 1250 SC one hundred (100) {

l ton crane. j

2. The value in use of Leasehold improvements made to the Site by NECO (including the evaporator unit).
3. The Fair Market Value of the approximately twenty- .

eight (28) acres adjoining the Site, originally acquired by NECO and not ]

heretofore conveyed to the Conunonwealth.

4. In determining the value of ~NECO's Leaschold Estate, 1

1 Marshall & Stes ens, Inc. shall review and examine NECO's Kentucky l 2--

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. 1 Facili'y Lease Valuation to determine its reasonableness and conformity j with professionally accepted appraisal standards. The value of NECO's 1

Leaschold Estate shall be defined a s not after tax profit, excluding .any future prospective Federal, state or local taxes which are propo' sed but i I

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are not currently impicmented for the life of the facility. Fo r pu rpo se s {

of this Agreement and Marshall & Stevens' appraisal, KRS 138.810, et sco2 shall not be applicable as presently imposed, and shall be considered solely as if applied in accordance with NECO's IUAF proposal submitted to the Kentucky Legislative Research Commission and recommended by same,

a. For purposes of appraisal by Marshall and Stevens, the method and manner of operating the property, which is the subject matici of this and prior Agreement between the. parties hereto, is for the purposes wl$c._,h'it has been used and according to the methods,rnanner and techniques as reasonably may be expected to occur during the term of the Lease between the parties hereto, dated January 21, 1963.
b. The Appraiser shall assume that NECO shall exercise its right to extend the . Lease of January 21, 1963, to its full term, and in addition thereto, shall consider two (2) additional years of operation which are contemplated by existing Agreement by these parties.

In conducting its appraisal of NECO's Kentucky. Facility valuation, Marshall & Stevens, Inc. shall have access to those books, records and papers pertaining specifically to the Maxey Flats Facility of both of the parties to this Agreement, and to the extent that any such filings by NECO with the Commonwealth which are confidential, such j confidentiality hereby is waived for purposes of this Agreement only.

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)i Marshall & Stevena, Inc. shall determine the extent and amount of any bond or restricted reserve which has been executed or i j

established on NECO's books in favor of the Commonwealth and the amount of said bond and restricted reserve shall be deducted from the appraisal value placed on the Site by Marshall & Stevens prior to arriving at an amount duc NECO as stated above. i 1

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NECO'S ADDITIONAL CONSIDERATIONS

1. The Commonwealth does hereby release NECO, its l respective parent, subsidiary and affiliated corporations, past and j

present and each of them, as well as its and their respective directo-s, officers, agents, servants and employees, past and present and each of themi-Irom any and all obligations snd liabilities arising through NECO's i Maxey Flata site operations or by virtue of any and all Leases, Licenses i

and Contracts between the parties, either verbal or in writing, and any and r11 claims, demands and causes of action of whatever kind and i I

I character whatsoever, whether known or unknown, suspected or unsuspected, '

now and henceforth, which said Commonwea?.th now owns or holds or has at any time owned or held as again:t NECO. The Commor; wealth shall

_ assume any and a1111 abilities of whatsoever nature of NECO, its respective parent, subsidiary and affiliated corporation, past and present and each of them, as well as its and their directors, officers, agents, servants and employees, past and present and cachaf them arising out of NECO's i operation of the Maxey Flats site.

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2. The Commonwealth in the event and for whatever reason it desires to reopen the Maxey Flats Site, within a ten (10) year h>eriod from the date of this Contract, hereby agrees that NECO shall  ;

l have the exclusive right of first refusal to operate the Maxey Flats Site.

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l The Commonwealth shall net allow, impair or contravene, through any agreement of whatever nature with any entity, NECO's right of first

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j refusal without NECO's prior written agreement.

3. The Commonwealth does hereby agree to employ NECO under a Cost Reimbursement Contract for the conduct of monitoring and surveillance activities, the on-going water management program and .

any and all other such programs as prosided in and required by the terms of the Cost Reimbursement Contract, Schedule of Charges - Cost RehnNtrsement Contract, and the Maxey Flats Nuc] car Disposal Facility Operations Maintenance Plan, all attached hereto as Exhibit "A" and incorporated hercin by reference as if set forth in their entirety, and such other programs as the parties determine to be necessary for the protection of the public health and safety. Such Coct Reimbursement Contract shall provide for reimbursement to NECO, pursuant to the 4

4 Schedule of Charges, of any programs as might be mutually agreed ic, be undertaken by NECO or directed to be undertaken by the Commonwecith for the maintenance of the Maxey Flats Site in the interest of the public health and safety. '

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4. The Commomvealth shall immediately upn execution r

of this Agreement te rmina.c any and sill existing Agreements, obligations, orders and the c.sisting License No. 16-NSF-1, as amended, concerning i

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t!,e oper ation of the Maxey Flats Site, and immediately issue to NECO '

a new license, which has mutually been agreed to, enabling NECO to l

properly perform its obligations under the Maxey Flats Facility Operations Maintenance Plan. In the event'tbe Commonwealth fails to issue such )

new license, NECO shall have the right to operate the Maxc*/ Flats Sito under its presently existing license as of D_ecember 15, 1977 and the f

i right to any other remedies availabic to it in courts of competent jurisdiction.

THE AGREEMENT '

It is acknowledged and agreed to by the parties that Mr.rshan

& Stevens, Inc. has concluded its appraisal of NECO's valid interests in the Mpxey Flats facility, with such interests being valued at Five Million, s /

Forty-five Thousand, Three Hundred Dollars ($5,045,300. 00).

Ilowever in consideration of the foregoing, the mutual promises of the parties hereto and the benefits to be derived, one from the other by reason of this Agreement, it is therefore understood and agreed that upon the performance of ali and singular, the terms and provisions hereinabove i

set forth, and solely for the purposes of this Agreement, the Commonwealth shall pay the am unt of O ne Milli m, Two IIundred Seventy Thousand i 1

Dolla rs ($1,270,000. 00) to NECO within rificen (15) days after execution of this Agreement and, within ten (10) days thereafter, NECO, by proper )

l officer, shall cancel, set asido and hold for naught all Contracts, Leases, 1

Licenses, Agreements and obligations, which may exiet for it and the Conouonwealth prio, to the date of this Agreement, and, the Commonwealth.

rhall, in accordance with its statutory dutics and contractual obligations, i J

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forthwith assume such liabilities,'if any," and exercise responsibility for l the perpetual care and maintenance of the Site and NECO shall have no i further responsibility or liability therefore.

Notwithstanding, the recitation appearing hereinabove, all Contracts, Agreements, undertakings and understandings presently I

custing between NECO and the Commonwealth, shall remain in full force i and effect until NECO receive payment in full of the One Million, Two l

Hundred and Seventy Thousand Dollars ($1,270,000. 00) due under this Agreement, and under no circumstances, except for the aforestated full performance shall either of the parties heretn, be deemed to have waired any provision of any agreement now existing between the parties hereto,

, ._f All provision headings appearing in this Agreement have been inserted for the sole purpose of convenience and ready re(crence.

They do not purport to, and shall not be deemed to, define, limit or extend the scop or intent of the provisions to which they pertain.

4 It is understood and agreed oy the parties hereto that if any ]

1 part, term, or provision of this contract is held by the courts to be illegal or in conflict with any law of the State of Kentucky, the validity of l the remaining portions or provisions herein shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if

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l the contract did not' contain the particular provision or part thereof held j 1

to be invalid.

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E XECtITE D thit- the twenty-second day of May, 1978, by JAMES N. NEEL,1^ resident, Nuclear Engineering Company, Inc. and l

RUSSELL McCLURE, Secretary, Executive Department for Finance and {

Administration, Commonwealth of Kentucky, each of whom aver their authority to execute this Agreemera.

COMMONWEALTH OF KENTUCKY NQCLEAR ENGINEERING COMPANY, 1 De INC.

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l ussell McClure, Secretary JaWi Neel, Picaident -

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By [ [* ( x dN/v%

Pete r' Do nn,'se cr e ta r y

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pepjrtment fo2 uuman nesources Examined: Examine d:

Attorney, Executive Department

( m- %b Atto rney, Nu' clear Enginee ring Com,,n-i for Finance and Administration Inc.

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/ _ i % i Atto rney, Depa rtment fo r IIur ian 'a , l Rescurces J i

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WCef O d SCIIEDULE OF CHARGES IZTT

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j COST REIMBURSEMENT CONTRACT (1) Labor Rates Per l'an Hour l (a) Water Program and Trench Maintenance $14.50 M1 (b) Evaporator Operators 19.25 M1!

(c) Equip ent operator 19.25 MI (d) Supervisory .22.00 ml Man years for each category are 4.00; 4.00; 00; and 2.75 respectively.

Expected available Man Hours are 1840 hours0.0213 days <br />0.511 hours <br />0.00304 weeks <br />7.0012e-4 months <br /> / individual. Overtime, if required and authorized by the Commonwealth, will be quoted separately. Labor Rates per Man Hour are based upon a three-shif t evaporation operation.

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Labor Kates Per Man Hour include Direct Labor expenses Overhead, General and 1. administrative and Frofit.

(2) Consumables and Supplies Based upon actual costs, consumables and supplies shall he invoiced to the Commonwealth at cost plus related handling charges or provided indepen-dent 3y by the Commonwealth at no cost to NECO.

(3) Other Direct costs Any and all other Direct Costs not included in Labor Rates Per Man Heur as shall be required for the performance of the Cost Reimbursement Contract shall be invoiced to the Co=monwenith ac cost plus related hanuling charges or provfJed independently by the Commonwealth at no cost to NECO. Such items shall inclut.c, but ate not limited to: hauling expenses, additional site equipment requirements, propanc fuel, burial fees, easte containers, truck /cquipment maintenance, generni maintenance, equipment license /permi:s, taxes / licenses, travel expenses, auto and general liability insurances, advertising, and other professional and consultation ices.

May 22, 1978

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Schedule of Charges i Cost Reimbursement Contract May 22, 1978 Page 2 (4) Laboratory Sample Charres l

(a) 3 Sa, Sb,3Ia, Ib, H $22.00/each (b) a, b, H 16.00/each (c) a, b 9.00/each (d) a,b,H 18.00/each NOTE: Individual laboratory sampic charges shall be based upon Com:nonwealth sample requirements of 3,774 per year allocated as (a) 526 samples; (b) 936 samples; (c) 648 samples; and (d) 1664 sampics.

(5) Rental: Lima 1250 sc 100 Ton Cranc Rental of the Company's Lima 1250 SC 100 ten crane shall be invoiced at $6000/conth for cach and every month that t .e i equipment remains on the Facility, provided however, that the rental period shall not exceed four (4) months. Any and al' extensions of the rental period shall be subject to review by the Commonwealth's Department for Finance and Administration.

Rental rate excludes operator, repairs, fuel and lubricants, insurance, licenses, saies or use taxes.

(6) General Terms and ccneitions Labor Rates Per Man Hour and Laboratory Sample Charges as identified in Sections 1 and 4, respectively, shall be subject to quarterly adjustments based upon changes in the Bureau cf Laber Statistics Ceasumer Price Index for Urban Wege Earners and Clerical Workers (United States City Average for All '

Iter.s; base 1967 - 100). Such quarterly adjustments shall be determined from the percentage change in the ELS CP1 from the date of this proposal.

(7) Method of Invoicigyg.

Invoices for Labor Rates Per Man Hour a'nd Laboratory Sampic Charges shall be made qu:>rterly prior to actual service perior..ance based upon the require-ments, as estimated by the Company, for cach category. Adjustments betueen actual and estimated service performance for Sections 1 and 4 shall be made by the Company within ten (10) days following the close of each quarter.

Invoices for Consumables and Supplies and other Direct Costs shall be made monthly based upon actual expenses incurred during that month.

Payment of all invoices is expected within . thirty (30) days of receipt of invoice. Both the Commonwealth and the Company shall resolve any and all invoice disputes within five (5) working days from the date of the receipt of invoice.

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Schedule of Cha rges Cost Retrabursement Contract May 22, 1978 ,

Page 3 (8) Records and Accounts i

For purposes of the Cost _ Reimbursement Schedule of Charges NECO shall i keep solely at the site such rsmords in c:wh detail and in such form as is I mutually satisfactory to the parties showing t.Se cost of Consumables and Supplies and Other Direct Costs performed bereunder, and shall permir the Commonwealth during all reasonable business houts to inspect all NECO time cards to verify the 2xtension and invoicing for total man hours and to further verify invoicing for Consumables aad Eurplies and Sther birect Cost inr;ofar as they relate to catters of thir Agreement.

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NUCLEAR ENGINEERING COMPANY, INC.  !

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> ' Pregiident JsimevN. Neel4 4 4

4 COMMONWEALTH OF KDITUCKY  !

EXECUTIVE DEPARTMENT FOR l

TINANCW"ANA ADMINISTMTION

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desell McClure, Secretc.ary j 1

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l THIS CONTRACT, made and entered into k l day of '

tiv, ', 1978, by and between the commonwealth of Kentucky, /.xecutive T Departmbnt for Finance and' Administration,'

  • (hereinafter called "Stato") and Nuclear Engineering Company, Inc., (hercinaf ter called "NECO") , a Californis corporation duly' J.

authcri:ed to do business in the Commonwealth of Kentucky, having its registered office in Louisville, Kentucky.

1 WIT'4ESSETif :

, WHEREAS, STATE AND'NECD have entered into an " Agreement for the Closure of the Maxey Flats Radioactive Waste Dispos 3t1 ,

I'.ite", heteit.af ter pferred to as. the " Agreement", and a "Maxey Flats Nuclear Lisposal Facility Operations Maintenance Plan",

ht.reinaf ter referred to as the " Plan", both of even data here-with; and, f j

W6EREiS, it is provided in, and a condition of the Agreement, th4t upon closure of the Maxey Flats Radioactive h'aste i Disposal Site under said Agreement, that State enter into a cost roiAbursemtnt contract with NECO for the conduct of monitor-ing and surveillance activities, the on-going water management program as required by the terms of the Plan, and such other ,

programs as the parties detotaine to be necessary for the pro-tection of the public health and safety. ,

NOW, TUEREI'G RE , for and in consideration of the mutual promises, and in order to promote and' give further effect to the ter:ns and conditions of the Agreernent and " Plan hereto agreed pon,

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by State and MICO, the said parties do hereby further agree and l

covenant each with the other, as follows:

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1. State hereby hires and employs NECO hs an agent of the State and NCCO hereby accepts such employment, to perform and conduct monitoring, surveillahee, water managemerit services and' other services and programs required by the terms of the Maxey Flats Nucicar Disposal Facility Operations Maintenance Plan (the' .

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  • Plan") of even date herewith, the provisions, and any and all l , licenses, amendements and supplements thereto o:ders, rules, regulations iraposed on the "icenece, and such other services and y programs at the Maxey Flats Radioactive Uaste Disposal Site, here; inafter referred to as the " Site", which are hereafter determined l

by the parties by addenda to this contract to be necessary for the protection of the public health and safety but whten are not other-vise provided for or required by the Plan.

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'2 . For the services, conditions, restrictions, compli-ance with orders, rules, regulations imposed and programs to be performed and con 2ucted by NECO as described in paragraph one (1), )

j hereinabove, State agrees to reimburse ::ECO for the ecst of such services, conditions, restrictions, compliance with orders, rules,  ;

regulations imposed and programs in accordance with the " Schedule )

i of Charges - Post Reimbursement Contract", dated May 22, 1978,

{ l attached hereto and incorporated by reference as an integral part

. hereof. ~

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3. It is understood and agreed between the parties here-n ,, ,; , .,.s ,f ,

to that this Cost Reimbursement Contract shall be effective for at initial term commencir g en the date first above written and ex-tending through the 30th day of June, 1978, provided, however, that 1

this Contract shall be automatically renewed thereafter upon the I i

sace terms and conditions for two (2) consecutive periods of '

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l twelve (12) months each, not to exceed two (2) such renewal periods, l '

and in no event beyond June 30,19% unless State shall give NECO written notice on or before the 31st day of March, 1979, that this Contract will not be extended beyond the end of the first such' renewal period.

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4. For purposes of*the Co'st Reimbursement Contract,*

NECO shall keep solely at the Site such records.in such detail ~

and in such form ss is mutually satir!cctory to the parties -

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e n;uwing the cost of Consumables and supplies and Other Direct Cost .

performed hereunder, and shall pent.it the Commonwealth during rensonable business hours to inspect NECO time cards to verify 4

1 the extension and invoicing for total man hours.and to verify ,

'1 invoicing for Consumables and S;pplies' and Other Direct Cor ts i l e -/ . ) I

. insofar as they relate to matters of this Agreement. ,,

S. State Leknowledges and agrees that NWCO s'ial!, oppoir.

l a Project Control Officer who shall have overall control of NECD's i

responsibilitic; entailed in this' project und'sait project Control I l

Officer will serve as the singlz cporational paint of centact between 12CO and State. NECO is and shall perform this Agreeeent as an agent of the State; provided, that NECb shall select, super-vise and exercise contsal and direction over its employees under J

this Contract, and State shall exerciaa no supervision er centrol over NECO's employees in their perf.ormance of services' and pr'ogtar under this contract, but NECO shall be accountable to State for the actions of its personnel at the Site and for the manner in l j

wnich such employees perform and carry out said services and programn.

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6. Orswings and specifications prepared or developed {

by N!:CO in the course of performance of the cervices and progiaras, resuired by the Plan, licenses, orders, rates and regulations ~~~

and to be perforned by NECO shall De the property 6f NECO, ,

whether or not the work for which they are mabe be executed, but

ICO may at its cole discretion provide State, witbout charge,  !

on a confidential and proprietary basis, one (1) comp 3cte copy

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of all such drav!ngs and/or specifications to prepared or dev61opet

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NECO covenants and agrecs that it shall

  • use dnd employ its best efforts in its performance an.

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d conduct of the I, services and programs icquired by the plan

, licenses, orders, '

jrulesandregulationsandof.anyadditionals ,

ervices.or programs i determined to be necessary for the protection of th t

e public health and safety contract, for which it may be emplo3 cd under Addenda t o this ~

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but NECO makes no warranty of any kind k

, express or, 3 imp 12nd, including implied warranties of mer h c antability and "",

II fitness for a particular purpose, cacept that any equipment or 7 facilities furnished by NECO under this Contract shall be.ll . -

the purpose for which'such equipment orc fa ili I

' intended. tics are ordinarily This warranty sets forth the sole obligation of NECO i and is in lieu of all other warracties

, expressed, implied, or statutory,Tncluding any warranties of merchanti bili a

ty and fitness for a particular purpose, whether arising by l or conduct. aw, custom, contract .

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The performance of the Contract, except for the' payment of money due urCO under the Schedule of Ch may be su ponf.ed by either party in the even'c  :

of argon es ittashed, riot, fire, uplosion, accident, act of God, war, flood, sabotage, lack of ade-quate fuel, power, raw materials, ,

tation facilitics; breakage or failure oflabor, containers or trans machinery or apparatus, national defense rnquir' enents or in th strike, .

lockout or injunction, e event of labor trouble, be required to settle a laber disp t(provirled that al neither party s rent);

or any other event beyond the reasonabla o against its e control of such party, which event provents any and all Contract. '

In no event shall this clause beperf6tmance under this+ ,

'i performa.nes beyond the term of this Co tconctrued to extend n ract. '

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  • It is understood and agrodd by'the' that if any part, tert, parties hereto'2 by the courts to be illegal or in cor provitic.n of this contract is State of Kentucky, onflict with any law of the A

the validity cf tFo r0maining porti previcions herein Lall not be af fected , and the ons or ct;;

rights and

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7 NECO covenants and agrees that it s' hall \

use and,Pa,t-.. ,,

employ its best efforts in its performance and cond l uct of t,he

services and programs required by the Plan j

, lic,enses,' o;:ders, j rules and regulations and cif. any additional services or programs determined to be necessary for the protection of th .

e public health 1

i'contractand cafety for which it may be employed

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but NECO makes no warranty of any kind  ?

, expeces or dmplied, including implied war (l fitness for a particult.r purpose,ranties of merchantability and **

cxcept that any equipment or l facilities furnished by NECO under this Contract shall b .

e fit for .

the purpose for which such equipment cor fa ili i intended. t cs are ordinarily This warranty sets forth the sole obligation of NECO and is in lieu of all other warranties, expressed

, implied, or statutory, -dcit. ding any warrantics of merchanti a ty and fitness bili for a par +1cular purpose, whether arising by 1 ~

or conduct aw, custom, contract B.

The perfcirmance of the Contract, except for the'

\ payment of money duo IIECO under the Schedule of Char r.ay be gen as attached, )

surpanded by either party in the event of: ~

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riot, fire, act of God, war,  ;

I explosion, accident, flood, sabotage, lack of ad e- 'l quate fuel, power, raw materials, tation facilities; breakage or failure oflabor, containera or trans machinery or apparatus, national defense requi' r ements or i t

s:rike, lockout or injunction. the event of labor trouble ,

be required to settle a labor disput(provided that shall neither party r.en t) 1 or any other o against its own best judg-party, which event provents any and allevent such beyond t con tract.

In no event shall this clause performance under this ,

perfor::.a.nce 1.syond the term of thicact. Contr e construed to extend+ *^  !

9. '

It is understood and agrc5d by th I

.3 that if any part, e parties hereto' tem, or provision of this contr .

by the courts to be i31egal or in confil act is held state of Kantucky, et with any law of t'he t.he validity of the remaining porti ons or .$

picvicions herein shall not be DifCet,Od, - 5.

and the rights and  :, .L .

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e obligations of the parties $ hall be construed and enforced as if the contract did not cor.tain the particular provicion or part thereof held to be invalid.

10.

Any waiver by either party of the ,nrovisions or conditions of this Contract shall not be construed or deemed to be I

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a waiver of a subsequent breach of the shme provisions or conditions, unless such waiver be expressed in writing and signed by the partf to be bound. .. .

e 11.

State and NECO hereby agree that any and all disputes concerning terms and conditions, validity of the Contract; its creation or any liability, obligations, and/or representations

  • appurtenant thereto shall be decided by arbitration by the American Arbitration, Association pursuant to the provisions of the Unitad States Arbitration Act 1926, 9 U.S.C.A. Ser. 1, et. ceq.

This agree ent to arbitrate shell be specifically enforceable under the prevailing act.

The esard rendered by the arbitrators shall be final, and judgment may be entered upon it in any' court having jurisdiz.ioa thereof.

12.

During the performance of ihis Contract, NECO agrees as follows:

(a) NECO will not' discriminate against any employee or applicant for employment because, .

of race, religion, color, nakional origin, handicap, sex or sgo (40-65).

NEco will take -

affirmative action to ensure that applicants l

are recruitcd and that employeds are treated during employemer.t without regard to their h i race, religion, color, national origin, handi- i 1

i cap, sex or ' age (4 0-65) . Such action shall in-clude, but not be limited to the following:

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employment, upgrading,' demotion or transfers l' recruitment or recruitment advertising; lay- )

a off or termination; rates of pay or other forms I of compensation; and selection for training,

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including apprenticeship. UECO agrees to post in conspicuous places, availsble to employees

, and applicants for employment, notices to be i

provided .rctting for.th the provisions of this

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non-discrimination [ clause.

. (b) NECO will, in all solicitations or advertise-l

. f ncnts for employees placed by or on behalf of NEco, state that all qualified ~ applicants will-

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receive consideration for employmsnt without-

. regard to race, religion, color, national urigin.

handicep, . sex or cge ' (4 0-65) .

I i (c) '!7ECO'will send to cach labor union or repre-I

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[ centative of worke*s with which it has a

  • i ,, collective bargaining as:tement'or other con-tract or under.itanding, a notice to be provided advising the said labor union or workers' repr,e-centative of the contract.or's commitments under

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this section, and shm41 post copics of the . .'

, notice in conspicuous places availabla to '

coployees anC applicants for' employment.

1:CCO will take such action'with respect to any ct;bcontract or purchase order .as the .

ad: ministering agency may direct as a means .of enforcing such provisions, including sanctions .

for noncompliance.

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In case the work to be perforned is paid *

{ for in whole or in part with' fur.ds obtained from the rederni Government or Lorrowed on the l

l credit of the rederd Covernme ,t pursuant to a

, grant, centract, Joan, insurance or, guarantee, or undertaken pursuant to any rederci program involving such grant., contract, loan, insurance e

or guarantee, .during the peri'ormance of this contract, the contractor, in addition, agrees; tothefolkowing4 (d)

NECO will comply with ell provisions of Executive Order No. 1124f of September'21, 1965, a.t amend-l ed, and of the rulcs, regulations and relevant

{

1 order's of the Sacretary of Labor.

(c) NECO will furnish all information and reports required by Executive Order no. 11246 of

{"

September 24, 1965, as amended,' and by the

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F I rules, regulations .and orders of the Secretary j

i of Laber, or pu:suant thereto, and will permit access to its books, records and accounts by. { '

the administering agency and the Secret'ar'y of Labor for, purposep of investi^gation to ascor-tain ccepliance with such rules, regulations and '

}

orders.

(f)

In the event of NE00's non-corpliance with the non -

discrimination clauses of this contract or'with, .

any of the said rules, regulations or orders, r i

' this contract may be cancelled, terminated or '

  • suspended in whole or in part and MECO may be declared ineligibic for further Government con-tracts er rederally-assisted construction contracts-in acw: dance with procedures authorized in Executive order No. 112;6 of september 24, 1965l [$:

nu tu anled, and such other sanctigt.s may be ,. .)

ipposed and remedics Invoked us provided..in .tud'"

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said Executive Order or by rule, regulation or order of the Secretary of Labor, or as other-vise provided by law. .

(g)

NECO vill include t'hc provicions of paragraphs (1) through (7) of Section 202 of Executive Order No. 11246 in every subcontract o,r purchase order s exempted by rules,' regulations or orders unics'.

s

% e of the Secretary of Laber, issued pursuant to Section 204 of Executive Order No. 11246 of

, September 24, 1965*, as amended, co'that such provisiens will ba binding upon each subcon-

  • .4r 4 tractoi* or vendor. NECOwilltAkesuchaction', 'J*

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. with respect t.o any sube'e ntract; or purchase , '. :.

order as the administering scency may direct:1y .';;3; as a neans of cnforcing such provisions, in-cluding sanctions for noncomplianect Provided g .

however, that in th9 *,

event a contractor becomes involved in, or is threatened with, 2itigatien -

with a subcontractor or vendor as a result of such direction by the agency. NICO may request

' t.he United States to enter into such litigation  !

- - - . . _ - , to protect the interests of the United Statec.

13.

It ir understood und agreed by and betweeb the ~

parties hereto that the Agreement, Centract, Licenses, Schedule )

cf Charges, and Plan, all of even date, embody the whole and entire agree:::ent of the pcrties rc3ating to NE:CO's clocure and r.aintenance operation of the Maxey Flats Radioactive 11aste' Disposal Site nad there are no promises, ter:n, conditions and/or obligations s -

between the parties pertaining to said subject not contained herein j

and these agreements supersede all previous communications, repro- i tentations or agreements, Licenses, orders, obligations , rules, regulations, written or verbal, between the parties, unlers provided otherwise.

Provided, however, that this Contract may be supplemented

. or amended by Addenda cubcequ-ntly entered into, between the parties.

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L _ _ _ _ _ _ . _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ _ _ . _ _ . _ _ _ _ _ _ _ _ . _ _ _ _ _ . . . _ _ _ _ _ _ _ _ _ . _ _ _ . _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ . _ _ . _ _ _ _ _ _ _ _ _ _ _ _ . _____d

for the performance b'.NECO y of additional'scrvices and' programs ~

et the site not contemplated or req.11 red by the Plan as may be h

6ter=ined are necessary o'r required by law for the protection' of the public health and safety and all of which NECO shall be l

co=pensated for in the same rianner as established in the' Schedule of Charges.

l EY{eN,0 day of

., ..97 8, . '

1 l EXECUTED this the .

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by JAE S N. NEEL, President of Nuclet.r Engineering Company, Inc.,

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and T.USSELL McCLUPE, Secretary, Executive Department for Finance '

and Ad= ministration, Commonwealth of Kentucky, each of whom aver their authority to execute this Agreement. ,

,, -l COMMDfTTALTE OF KENTUCKY ET.ECUTIVE DEPARTMENT FOR NUCLEAR ENGINEERING COMPANY, INC..

FIIW CE AND ADMINISTRATION ' # .r BYr BYr James N.13ec1, President kussell McClure, Secretary .

E1 WINED: EXAMINED:

, Attorney, Executive Department Attorney, liuclear Engineering Co. , Ir.

for Fi::ance and Administration 1

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