ML20237C239

Discusses Contractual Agreement to Indemnify Gpun W/Mpr for Removal of Samples from Bottom of Plant Unit 2 Reactor Vessel.Commission Approved Indemnity for Gpun in Listed Amount

ML20237C239
Person / Time
Site:	Three Mile Island
Issue date:	02/08/1989
From:	Kildee B NRC OFFICE OF THE GENERAL COUNSEL (OGC)
To:	Hagan T NRC OFFICE OF ADMINISTRATION (ADM)
Shared Package
ML20237C231	List: IA-98-182, Requests Approval to Mod Contract W/Mpr Associates,Inc for Purpose of Furnishing Limited Indemnification to Gpun. Indemnification Limited to Max of Listed Amount in Event That Removal of Samples Breaches Rv Wall ML20237C228 ML20237C233 ML20237C239 ML20237C242 ML20237C271 ML20237C280
References
CON-NRC-04-88-087, CON-NRC-4-88-87, FOIA-98-182 NUDOCS 9808210040
Download: ML20237C239 (1)

Text

_ .__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

i e n:

/  % UNITED STATES l { 7, NUCLEAR REGULATORY COMMISSION En j WASHINGTON, D. C. 20655 ,

\...../ February 8,1989 MEMORANDUM FOR: Timothy Hagan Contract Administration Branch Division of Contracts and Property Management FROM: Brian T. Kildee Office of the General Counsel

SUBJECT:

CONTRACTUAL AGREEMENT TO INDEMNIFY GPUN; SATISFACTION OF REQUIREMENT FOR TIME LIMITATION As you are aware, GPUN is acting both as a subcontractor and host facility under contract No. NRC-04-88-087 with MPR for the removal of samples from the bottom of the TMI-2 reactor vessel. As you are also aware, the Commission recently approved a $3 million contractual indemnity for GPUN. In keeping with such Comptroller General decisions as 62 Comp. Gen. 361(1983),which hold that the Antideficiency Act, 31 U.S.C. 6 665, prohibits indefinite, indeterminate, or "open ended" indemnity agreements, the Comission's approval is subject to the condition, among other things, that GPUN's indemnity be ,

limited in duration.

The potential liability covered by the GPUN indemnity is both definite and certain. In this regard, the indemnity is restricted to a maximum of

$3 million in damages to the reactor vessel which may occur "during sampling operations." Therefore, by its specific terms, the GPUN indemnity will expire of its own accord when the sampling operations are finished, which will be accomplished prior to contract completion. This inherent limitation in the duration of the indemnity period constitutes a time constraint which, together with the specific nature of the indemnity and the $3 million limitation, fully satisfy the Antideficiency Act constraints discussed above.

g . / O . -.-

MianT.Xidee Office of the General Counsel cc: Eric S. Beckjord Ronald M. Scroggins l

, Hudson B. Ragan Paul J. Edgeworth

. 3b 9808210040 980817 PDR FOIA

['kf DE900YE98-182 PDR

@ YO6L / UUV U