ML20245F605
| ML20245F605 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 04/27/1989 |
| From: | Ellen Brown PUBLIC SERVICE CO. OF NEW HAMPSHIRE |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| CON-#289-8608 NYN-89045, OL-1, NUDOCS 8905020438 | |
| Download: ML20245F605 (125) | |
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Y Edward A. Brown President and Chief Executive Officer )
l, NYN-89045 I April 27, 1989 United States Nuclear Regulatory Cocmission Washington, DC 20555 Attention: Document Control Desk References (a) Facility Operating License No. NPF-56, Docket No. 50-443 (b) USNRC Letter dated March 31, 1989, " Decommissioning Funding ,
Assurance,' S. A. Varga to E. A. Brown (c) NHY Letter NYN-89031 dated March 20, 1989, " Decommissioning Funding Assurance,' E. A. Brown to Document Control Desk (d) USNRC Letter dated April 25, 1989, " Supplemental Decommissioning Funding Financial Assurance Arrangements," V. Nerses to E. A. Brown
Subject:
Response to NRC Staff Comments on Decommissioning Funding Assurance y
Gentlemen:
On April 20, 1989, New Hampshire Yankee (NHY) and NRC Staff representatives participated in a meeting to discuss the Staff's comments (Reference (b)) concerning NHY's pre-operational deco =issioning surety bond [Ref erence (c)] and NHY's proposed supplemental financial assurance arrangements. Subsequent to this meeting, the NRC Staff commented [ Reference (d)) on NHY's proposed supplemental financial assurance arrangements.
New Hampshire Yankee will implement its proposed supplemental financial assurance arrangements, as documented herein, to resolve all outstanding NRC Staff comments and in the interest of an expeditious issuance of a low power operating '
license. 1 Enclosure 1 provides NEY's response to NRC Staff comment number 1 [ Reference (b)), including the information requested in Reference (d). The enclosed response reflects NHY's commitment to establish and fund a Supplementary Pre-Operational Decommissioning Trust (hereinafter ' Supplementary Trust" or " Supplementary Trust M Agreement") which will be utilized to purchase a portfolio of United States b$$ Government Zero Coupon Bonds (STRIPS) and includes a draft copy of the Supplementary
$8a. Trust Agreement. The Supplementary Trust in conjunction with the Surety Bond 80
[ Reference (c)] will assure the availability of funds to meet the costs defined in CLI-88-10 including escalation. The Supplementary Trust will be funded promptly
.p after the Commission has authorized and prior to issuance of a low power operating y license.
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[ In the April 20, 1989 ceeting, NHY representatives also discussed the response l
$g to NEC Staff comment number 2. This; response is-.. documented..in _ Enclosure .2. - =.
O~ a (D a.~i New Hampshire Yankee Division of Public Service of New Hampshire
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P.O. Box 300 Seabrook, NH 03874 Telep' hone (603) 474-9521 pl7) - -
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m a United States Nuclear Regulatory Co:=ission April 27, 1989 Attention: Document Control Desk Page 2 New Hampshire Yankee believes that its responses ir.:luded herein fully address all of the NRC Staff comments and settle all outstandin5 issues related to funding assurances for a hypothetical decocenissionir.g af ter low power testing. ' We request !
l- that the NRC Staff review the enclosed responses expeditiously. Please notify us immediately if further information is required to compit:e your review of this matter.
Respectfully submitted, New Hampshire Yankee Division of .
Public Servi:e Company of New Hampshire, L as agent for the Applicants.
Edward A. Brwn President nr.1 Chief Executive Officer Enclosures STATE OF NEW HAMPSHIRE Rockingham. ss. April 27, 1989 Then personally appeared before me, the above-named Edward A. Brown who, being duly sworn, did state that he is President and Chief Exe:utive Officer of New Hampshire Yankee, that he is duly authorized to execute and file the foregoing information in the name and on the behalf of New Hampshire Yankee, and that the statements therein are true to the best of his knowledge and belief.
bat a 8 % M ueu.4 3everly E. Ell)oway, Notary fu)lic u
My Corissic: 7.xpires s March 6, 1990 cci Mr. William T. Russell Regional Administrator United States Nuclear Regulatory Commission Region I 475 Allendale Road King of Prussia, PA 19406 Mr. Victor Nerses, Project Manager g Project Directorate I-3 United States Nuclear Regulatory Com::dssion Division of Reactor Projects Vashington, DC 20555 Mr. David G. Ruscitto ;
. NRC Senior Resident Inspector ~ -
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p.O. Box 1149 ..P . O . ..nn r u 49 Seabrook, NH 03874 S ^ "* ,~ t ' " r, .
4 ENCLOSURE 1 TO NYN-89045 -
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I NRC Staff Comment 1:
ne Commission's funding requirements in CLI-88-10 were based upon values expressed in 1988 constant dollars (see CLI-88-10 pp 14, 15). The Commission adopted the Applicants' response to CLI-88-07, "The Plan", tc develop its estimate of decommissioning and fuel storage costs. Section 3, Table 2, Note 1 of "The Plan' states 'ALL VALUES ARE IN 1988 DOLLARS." Table 2, presented the estimated costs associated with returning Seabrook Unit 1 to unrestricted use and termination of the NRC license in the event low power testing had been completed and a full power license was not granted. The Surety does not state that the expenditure amounts that appear in the Surety are in 1988 constant dollars.
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Response
Based upon the discussion at the April 20, 1989 meeting and the NEC Staff's '
subsequent recommendations [ Reference (d)], NHY hereby commits to implement the supplementary financial assurance arrangements (discussed at the meeting and described herein) which are designed to assure funds adequate to meet the costs defined in CLI-88-10 including escalation. These arrangements include establishing a Supplementary Trust and, upon Commission authorization of issuance of a low power license and prior to issuance thereof, funding that trust with sufficient funds (cost as of April 24, 1989 is $6,275,040) to purchase a portfolio of Zero Coupon Bonds which at maturity will produce the necessary funds ($40,263,513).
The following documents which ref(pet the Staffs' comments are attached hereto:
- 1. Draf t Seabrook Supplementary Pre-operational Decommissioning Trust Agreement, undated (Attachment 1 hereto)
NOTE: Attached is a draft copy of the "Seabrook Supplementary Pre-Operational Decom=issioning Trust Agree =ent". The Supplementary Trust Agreement is essentially equivalent to the "Seabrook Pre-Operational Decommissioning Trust Agreementa previously submitted [ Reference (c)] with the exception that the Supplementary Trust Agreement contemplates ' Additional Pre-Operational Decommissioning Costs' (see Definitions). The additional costs contemplated in the Supplementary Trust Agreement are those associated with long term fuel storage and escalation thereon over the 28 l year fuel storage period envisioned in CLI-88-10, and are assured by the l Zero Coupon Bond purchases required in the Supplementary Trust Agreement. Upon execution, a copy of the Supplementary Trust Agreement will be submitted to the NRC Staff.
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- 2. New Hampshire Yankee Post Five Percent Decommissioning Fund, Statement of Application and Source of Funds (Attachment 2 hereto)
NOTE: In CLI-88-10, the Commission determined that $72.1 million would be required for a hypothetical decommissioning after low power testing including decommissioning costs ($19.7 million), fuel storage costs
($25 million), fuel disposal costs ($13.0 million) and a twenty-five percent contingency cost ($14.4 million). In developing this Statement of Application and Source of Funds, NHY brought all costs included in '
CLI-88-10 to current year dollars and applied an escalation factor of 3.5 percent to decommissioning, decontamination, dismantlement, fuel storage and contingency line iteme. The escalation rate of 3.5% was determined from the Presidents' Council of Economic Advisors and the Office of Management and Budget. Fuel storage costo for months one through forty-nine totalling $5,408,130 were included in both the decommissioning and fuel storage cost categories of CLI-88-10. This double inclusion of fuel storage costs resulted in an excess amount which has been utilized to offset costs until the excess is depleted in year twelve. The amount specified as the initial deposit into the supplemental trust reflects market conditions for United States Government Zero Coupon Bonds as of April 24, 1989. The actual purchase price of the bonds will be dictated by the market conditions at the tLme of purchase. The Zero Coupon Bond maturity values will be sufficient to meet the requirements of CLI-88-10 including escalation.
- 3. New Hampshite Yankee, Post Five Percent Decommissioning Fund, Annual Statement of Application and Source of Funds (Attachment 3 hereto)
NOTE: See il above.
- 4. New Hampshire Yankee, Post Five Percent Decommissioning Fund, Year Five Monthly Cost Summary (Attachment 4 hereto)
NOTE: See #1 above.
- 5. New Hampshire Yankee, Post Five Percent Decommissioning Fund. Supplementary Pre-Operational Decommissioning Trust Pro Forma Schedule of Investment Portfolio (Attachment 5 hereto)
NOTE: The pro forma Zero Coupon Bond schedule represents market conditions for these securities as of April 24, 1989. Fluctuations in interest rates will cause the purchase price to vary from that indicated in the pro forma schedule. The Zero Coupon Bond maturity values together with the previously submitted Surety Bond will be sufficient to meet the requirements of CLI-88-10 including escalation. Upon purchase of these securities, NHY will provide confirmation of the purchase and an actual schedule of the portfolio.
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- 6. Communications with DOE ( Attachmer.ts 6, 7, and 8 hereto)
NOTE:
In response to the NRC Staff s' :en:::nent, NHY wrote to the Deputy Secretary of the DOE, W. Henson Moore, requesting clarification of their interpretation of the Seabrook .7oi.nt Owners " Contract for Disposal of Spent Fuel and/or High Level Ridicactive Waste. " NHY's letter to DOE and its disposal contract are attached ( Attachment 6 and Attachment 7 hereto). On April 27, 1989, Deputy Secretary Moore responded to NHY indicating that the disposal et: tract applies to seabrook's fuel af ter -
low power testing, and since there will be no electrical generation from Seabrook Station during low power testing, the cost to the Seabrook Joint Owners for disposal of this fue' vould be zero. Deputy Secretary Moore's response (Attachment S hereto) supports NHY's position that fuel disposal costs in CLI-88-10 plus continpacy plus escalation of contingency are more than adequate to cover fut:re fuel disposal costs. Accordingly, the Annual Statement of Application and Source of Funds (supra) includes an expenditure in year twenty-eight for fuel disposal costs of $13,000,000 plus twenty-five percent contini,ency of $3,250,000 plus escalation on the fuel disposal contingency of $4.977,593 totalling $21,227,593.
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ENCLOSURE 1 ATTACHMENTS LIST i
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1 Attachment 1 to Enclosure 1 of NYN-89045 {
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" Draft Seabrook Supplementary Pre-Operational Decocnissioning Trus:
Agreement" undated i
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Attachment 2 to Enclosure 1 of NYN-89045 "New Hampshire Yankee Post Five Percent Decommissioning Fund Statement of Application and Source of Funds" Attachment 3 to Enclosure 1 of NYN-89045 "New Hampshire Yankee Post Five Percent Decommissioning Fund Annual j Statement of Application and Source of Funds" j Attachment 4 to Enclosure 1 of NYN-89045 ,
"New Hampshire Yankee Post Five Percent Decommissioning Fund Year Pive Monthly Cost Summary" Attachment 5 to Enclosure 1 of NYN-89045 h
"New Hampshire Yankee Post Five Percent Decommissioning Fund Supplementary Pre-Operational Decommissioning Trust Pro Fulma Schedule of Invest. .ent Portfolio" Attachment 6 to Enclosure 1 of NYN-89045 NHY to DOE Letter dated April 21, 1989 E. A. Brown to W. Henson Mcore Attachment 7 to Enclosure 1 of !TYN-89045 "US Department of Energy Contract No. DE-CR01-86RW00111 Contract for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste' dated June 27, 1986 -
Attachment 8 to Enclosure 1 of !TYN-89045 DOE to NHY Letter dated April 27, 1989 W. Henson Moore to E. A. Brown
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ATTACHMENT 1 TO ENCLOSURE 1 0F NYN-89045
' Draft Seabrook Supplementary Pre-Operational Decommissioning Trust Agreement" undated W
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SEABROOK SUPPLEMENTARY PRE-OPERATIONAL DECOMMISSIONING TRUST AGREEMENT This SUPPLEMENTARY PRE-OPERATIONAL DECOMMISSIONING TRUST AGREEMLNT, dated as of __, 1989, is made between Canal Electric Company, The Connecticut Light & Power Company, EUA Power Corporation, Hudson Light & Power Department, Massachusetts Municipal Wholesale Electric Company, Montaup Electric Company, New England Power Company, New Hampshire Electric Cooperative, Inc., Public Service Company of New Hampshire, Taunton Municipal Lighting Plant, United Illuminating Company and Vermont Electric Generation &
Transmission Cooperative, Inc., acting through NEW HAMPSHIRE YANKEE DIVISION OF PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE ,
(together with its duly appointed replacements, hereinafter called the " Managing Agent"), as agent, and FIRST NH INVESTMENT SERVICES CORP., a New Hampshire corporation (together with its successor or successors, hereinafter called the " Trustee").
WHEREAS, the Managing Agent is acting as agent for the "Seabrook Participants", as defined in Section 1.01 and listed in Exhibit A, which are the joint owners and licensees of the Unit, as defined in Section 1.01; WHEREAS, by Decision dated December 21, 1988 (the
" Decision") the Nuclear Regulatory Commission (hereinafter 1
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i referred to, together with its successor governmental agency or agencies, as the "NRC") has imposed the requirement upon the Seabrook Participants, as a pre-condition for obtaining a low-power testing license for the Unit, to provide reasonable assurance that the sum of $72.1 million will be available to J pay for decommissioning the Unit after low-power testing in the event a full power license is ultimately denied; WHEREAS, each Seabrook Participant is obligated to pay its Ownership Share of decommissioning costs under the terms of (a) the " Agreement for Joint Ownership, Construction and Operation of New Hampshire Nuclear Units" dated as of May 1, 1973, as heretofore amended (the " Joint Ownership Agreement")
and (2) the " Pre-Operational Decommissioning Funding Agreement" dated as of February 22, 1989 between the Trustee and each of the Seabro1k Participants acting through the Managing Agent; WHEREAS, the parties to this Agreement have established the Seabrook Pre-Operational Decommissioning Trust pursuant to an agreement dated as of February 22, 1989 as a vehicle for payment of Pre-Op Decommissioning Costs; WHEREAS, pursuant to a surety bond dated as of March 20, 1989, the Aetna Casualty and Surety Company will assure payment to the Seabrook Pre-Operational Decommissioning Trust of the Pre-Op Decommissioning Costs; l
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1 WHEREAS, the NRC has required that the Seabrook Participants provide reasonable assurance that additional funds be available to pay for the cost of decommissioning the Unit after lor power testing in the event a full power license is ultimately denied in addition to the funds available through the Seabrook Pre-Operational Decommissioning Trust as further outlined in Exhibit C; WHEREAS, the Managing Agent desires to establish independent trusts to assure, in the event the Unit is ultimately denied a full power license, the financial ability of the Seabrook Participants to meet their obligations to the NRC for payment of the Additional Pre-Operational Decommissioning Costs in connection with decommissioning the Unit, such trusts to hold all payments made to them and earnings thereon solely for the purpose of meeting such Additional Pre-Operational Decommissioning Costs and only thereafter for the benefit of the Seabrook Participants; and WHEREAS, all conditions and requirements necessary to make this Supplementary Pre-Operational Decommissioning Trust Agreement a valid and legal instrument, in accordance with its terms and for the purposes herein expressed, have been i l
performed and fulfilled and the execution and delivery hereof have been duly authorized.
NOW, THEREFORE, the Managing Agent on behalf of the Participants hereby transfers the sum of One Dollar to the
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I Trusteo and the Trustee acknowledges receipt thereof and does by these presents agree, on behalf of itself and its successor or successors in trust, to hold all property and rights conveyed to it upon the trusts and subject to the conditions herein set forth, viz.:
ARTICLE I Definitions Section 1.01. Defined Terms. For all purposes of this Supplementary Pre-Operational Decommissioning Trust Agreement, unless the context otherwise specifies or requires:
A. " Additional Pre-Operational Decommissioning Costs" shall mean the estimated costs and expenses in addition to the Pre-op Decommissioning Costs that might be incurred during the decommissioning process as set forth in Exhibit C; B. " Decision" shall mean the Decision (CLI-88-10),
dated December 21, 1988, issued by the NRC in Docket Nos.
50-443-OL-1.and 50-444-OL-1.
C. " Managing Agent" shall mean New Hampshire Yankee Division of Public Service Company of New Hampshire or any other entity from time to time appointed to act in that capacity by the Seabrook Participants pursuant to Section 3.02 hereof.
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D. " Officer's Certificate" shall mean a certificate of the Managing Agent delivered to the Trustee and signed by the President (or a Vice President), or the Treasurer (or an Assistant Treasurer), or officers with equivalent responsibilities, of the Managing Agent.
E. " Ownership Share" shall mean each Participant's ownership share of the Unit as determined by the Joint ownership Agreement, those shares in effect on the date hereof being set forth in Exhibit A hereto.
F. " Pre-Op Decommissioning Costs" shall mean the aggregate of $72.1 million of costs and expenses enumerated in the Decision and the Plan referred to therein which would be incurred in connection with the decommissioning of the Unit if that were required as the result of denial of a full power operating license for the Unit after low-power testing of the Unit, to permit the Unit to be released for unrestricted use pursuant to NRC rules and regulations.
G. "Seabrook Participants" or " Participants" shitll mean the owners of the Unit, together with their successors, as listed on Exhibit A hereto. "Seabrook Participant" or
" Participant" shall mean a single owner of the Unit as the context requires.
H. " Trust" shall mean those trusts described in Section 2.01 hereof.
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I. " Unit" shall mean the nuclear electric generating unit and the land presently owned by the Seabrook Participants and located at Seabrook, New Hampshire, known as the Seabrook Nuclear Unit I, as it shall from time to time exist, together with such structures, components and equipment now or hereafter associated therewith which become subject to decommissioning rules, regulations or orders of the NRC.
ARTICLE II Identification. Nature and Duration of the Trusts Section 2.01. Identification of Trusts. One trust shall be established and named for each of the Seabrook Participants. Such trusts shall be named collectively the "Seabrook Supplementary Pre-Operational Decommissioning Trust."
Additional trusts may be established hereunder in the event additional entities become obligated by the Joint ownership Agreement to make payment of a portion of the Additional Pre-operational Decommissioning Costs of the Unit.
The Managing Agent shall also have the richt to add additional trusts in the names of one or more of the Seabrook ,
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Participants if such additional trusts are required or desirable (in the sole discretion of the Managing Agent) to l
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comply with any law, order, rule or regulation of any governmental body or agency.
Section 2.02 Eature and Purnose. The Seabrook Supplementary Pre-Operational Decommissioning Trust is intended to assure provisions for payment of the Additional j
Pre-Operational Decommissioning Costs of the Unit in the event a full power license for the Unit is denied by the NRC. l Nothing in this Supplementary Pre-Operational Decommissioning j Trust Agreement shall be interpreted to relieve the f I
individual Seabrook Participants of any obligation, for any j l
liability, claim, demand, debt, right or cause of action, ,
i loss, damages, costs or charges which may arise from the insufficiency of the moneys held in one or more of the trusts hereunder to defray fully the Additional Pre-Operational j Decommissioning Costs of the Unit. Subject to the Trustee's obligations, as set forth in this Supplementary Pre-Operational Decommissioning Trust Agreement, to hold, invest, reinvest, and disburse the principal and income of the trusts, the Trustee shall be exonerated from any and all liability which may arise from the insufficiency of the moneys held in one or more of the trusts hereunder to defray fully the Additional Pre-Operational Decommissioning Costs of the Unit. :
The trusts hereunder will be independent of the Seabrook Participants, and will constitute vehicles that will hold and
disburse, in accordance with the provisions hereof, moneys collected from the Seabrook Participants and dedicated to the purpose of defraying the Additional Pre-Operational Decommissioning Costs of the Unit. If, after completion of the decommissioning process for the Unit, it is determined that excess moneys may have been collected or accumulated in one or more trusts pursuant to this Supplementary Pre-Operational Decommissioning Trust Agreement, any such excess shall be distributed to or for the benefit of the Seabrook Participants pursuant to Section 8.02 hereof.
Section 2.03. Duration; Amendment. The term of the within trusts shall extend until the earliest of: (1) if a full power operating license for the Unit is issued by the NRC, the date which is thirty (30) days after the final determination of any appeal of such NRC action; or (2) if such a license has been finally denied, the exhaustion of all moneys in the trusts at a time when the Seabrook Participants are under no further obligation to make deposits therein; or (3) if such a license has been finally denied, the completion of the pre-operational decommissioning process for the Unit as evidenced by an appropriate order, license expiration or other act of the NRC; or in any event; (4) if these trusts are not exempted from the Rule Against Perpetuities, twenty-one years after the death of the last survivor of a group of individuals living at the creation of such trust, the
1 measuring lives shall be all graduates of the classes of 1987 and 1988 of Harvard College in Cambridge, Massachusetts.
The trusts are irrevocable.
ARTICLE III The Manacina Acent Section 3.01. Description of Acencv. The Managing Agent is acting in its capacity as agent for the Seabrook Participants pursuant to the Joint Ownership Agreement. The Managing Agent and its officers, employees and agents shall incur no individual liability in carrying out their duties hereunder. The Trustee may rely upon the authority of the Managing Agent to act on behalf of the Seabrook Participants and need not make inquiry to such Seabrook Participants regarding such authority. An Officer's Certificate shall be accepted by the Trustee as conclusive evidence of the facts therein stated, and the Trustee shall be exonerated for any action taken or omitted to be taken by it in good faith reliance thereon. Notwithstanding the foregoing, the Trustee may, in its discretion, make inquiry as to such authority or facts.
Section 3.02. Replacement of Manaaina Acent. New Hampshire Yankee Division of Public Service Company of New Hampshire shall act as Managing Agent hereunder until such time as it is replaced by the Seabrook Participants. A 1
replacement shall be effected, at any time and from time to -
time, by delivery to the Trustee of a written notification, executed by Seabrook Participants having Ownership Shares in the Unit aggregating at least fifty-one percent (51%), which designates a replacement and the effective date of the replacement, whereupon the replacement shall execute an instrument accepting such appointment and deliver one counterpart to the Trustee. Thereupon, without further act, such replacement shall become vested with all the rights, powers and duties of the Managing Agent hereunder as of the date specified. The parties hereto recognize that the Seabrook Participants intend to appoint New Hampshire Yankee Electric Corporation, a New Hampshire corporation, as Managing Agent hereunder as soon as practicable after all regulatory approvals have been obtained.
ARTICLE IV Supplementary Pre-Operational Decommissioning Trust Funds Section 4.01. Deposits to Supplementary Pre-Operational Decommissioning Trusts. All moneys deposited with the Trustee by or at the direction of the Managing Agent pursuant to the provisions hereof, together with income earned thereon, shall be held by the Trustee upon the trusts hereunder. Each of the Seabrook Participants is obligated by the Joint Ownership Agreement, inter alia, to make payment of moneys to or as directed by the Managing Agent to be deposited into the trusts created by this Supplementary Pre- .
1 Operational Decommissioning Trust Agreement in an amount equal to eacM Participant's share of any Additional Decommissioning Costs which may be incurred. The Managing Agent shall determine each Participant's share of the amount to be deposited into this Supplementary Pre-Operational Decommissioning Trust for the purpose of providing funding in anticipation of the Additional Pre-Operational Decommissioning Costs, prepare a schedule for payment of such costs, and submit a copy thereof to the Trustee and each Participant. Payment shall be due from each Participant on or before the date indicated in the schedule prepared by the Managing Agent. The payment schedule may provide for a lump-sum payment. The Managing Agent shall instruct the Trustee to invest the funds in the Supplementary Pre-Operational Decommissioning Trust in suitable investments in accordance with the guidelines set forth in Exhibit B to assure that the amounts required in such trust as outlined in Exhibit C will be available.
No Participant's required payment shall be increased t
because of the failure of any other Participant to make a required payment to the trusts. Participants shall not be permitted at any time to offset any required payment by l
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application in any way of expenditures or obligations which might otherwise qualify for withdrawal under Section 4.03.
Moneys held pursuant to this Supplementary Pre-operational Decommissioning Trust' Agreement as part of any trust hereunder shall be applied or paid by the Trustee only in accordance with the provisions of this Article IV.
Section 4.02.- Manaaement of Trust Monevs. Principal and income held in trust under this Supplementary Pre-operational Decommissioning Trust Agreement shall be invested and reinvested by the Trustee, and may be invested without distinction between principal and income. Such investment and reinvestment of funds in the several Participants' Trusts shall be in accordance with the investment guidelines then in effect. The investment guidelines are attached hereto as Exhibit B. Exhibit B may be revised from time to time by the Managing Agent. Any revision to Exhibit B shall be effective j upon its delivery by the Managing Agent to the Trustee.
1 Each of the trusts hereunder shall constitute a separate 1 and distinct trust, but for convenience of administration the Trustee may mingle or combine any of the investments or property of said trusts in a common fund or funds in which the contributing trusts shall have undivided proportionate interests. In investing, reinvesting, exchanging, selling and otherwise managing the trusts, the Trustee shall 1
discharge its duties with the care, skill, prudence and i
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' diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like character.
Section 4.03. Withdrawal of Trust Monevs A. Additional Pre-Coerational Decommissioning Costs.
Upon compliance with the requirements of this paragraph A, moneys held by the Trustee in the trusts hereunder may be withdrawn to pay or make reimbursement of expenditures which constitute Additional Pre-Operational Decommissioning Costs of the Unit. Each Participant; share of such withdrawal shall be based on such Participant's Ownership Share.
In computing the amounts that may be withdrawn for Additional Pre-Operational Decommissioning Costs of the Unit, the gross amount of an expenditure shall be reduced by any refunds, rebates, or other moneys similarly received by the Seabrook Participants or their agents with respect thereto.
Any such refund, rebate or similar payment received after the certification of the expenditure or obligation to which it relates, and which has not previously been taken into account shall, ct the election of the Managing Agent, be applied within three months after its receipt to reduce the amount of a subsequent withdrawal for Additional Pre-Operational Decommissioning Costs from the trusts made under this
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paragraph or shall be redeposited in the trusts from which the amount was withdrawn.
A withdrawal from the trusts for the purposes described in this paragraph A shall be paid to the Managing Agent upon receipt by the Trustee of an officer's Certificate of the Managing Agent dated on the date of the withdrawal application:
(1) stating the total amount to be withdrawn; (2) stating that the amount withdrawn will be used to pay or make reimbursement of expenditures which constitute decommissioning costs of the Unit and that sufficient funds are not available in the Pre-I Operational Decommissioning Trust to cover the expenditures; (3) stating the amount to be withdrawn from each Participant's trust; (4) stating that none of such expenditures and obligations have been made the basis of a prior withdrawal under this paragraph; j (5) stating that any moneys which have previously been withdrawn from the trusts pursuant to this Paragraph A to pay obligations have been expended for the purposes for which they were withdrawn; and (6) stating that no governmental approval for such withdrawal is necessary or, if at any time the making of
withdrawals herefrom becomes subject to the jurisdiction of any governmental agency, stating that such regulatory approval has been obtained and furnishing a copy thereof.
The Trustee shall be exonerated from all liability for any action or inaction taken pursuant to such officer's Certificate.
B. Administrative ExDenses. No withdrawals shall be made from the trusts hereunder for any administrative expenses of the trusts, for any taxes or for any rec.on other than the payment of Additional Pre-Operational Decommissioning Costs pursuant to Paragraph A of this Section or a distribution pursuant to Section 8.02 hereof.
ARTICLE V Consolidation. Mercer, Conveyance Section 5.01. The Seabrook Participants May Consolidate ;
I' or Merce on certain Terms. Nothing in this Supplementary Pre-Operational Decommissioning Trust Agreement shall be interpreted to prevent any consolidation or merger of any of 4 the Seabrook Participants with, or into, any other entity or entities, or the conveyance or transfer of any of their respective rights, title and interest in the Unit and/or the trusts hereunder to any other entity or entities. Upon the sale or other transfer of all or part of a Participant's
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interest in the Unit, moneys in the trusts hereunder established on behalf of the transferor Participant which relate-to the transferred interest shall be transferred to successor trusts established on behalf of the' transferee Participant.
Section 5.02. Other Successors. Nothing in this Supplementary Pre-Operational Decommissioning Trust Agreement shall be interpreted to prevent any of the Seabrook Participants from transferring their respective rights, title and interest in, and their obligations with respect to, the Unit and/or the trusts hereunder to any agent, representative, authority, agency, commission or other entity or entities, authorized by applicable state and federal statutes or regulations to assume responsibility for the decommissioning of nuclear facilities.
ARTICLE VI The Trustee Section 6.01. Acceptance of Trusts; Certain Terms of the Trusts. The Trustee, for itself and its successors,.
hereby accepts the trusts created by this Supplementary Pre-Operational Decommissioning Trust Agreement and agrees to perform the same, but only upon the terms expressly herein set forth, including the following:
A. The Trustee makes no representations as to the value or condition of the trusts (or any part thereof) to achieve
the purposes of this Supplementary Pre-Operational Decommissioning Trust Agreement and the trusts created herein.
B. The Trustee shall be exonerated from any and all liability arising with respect to the disposition of any moneys duly paid to the Managing Agent or others under any provision hereof.
C. The Trustee may perform any duty hereunder either directly or through its agents or attorneys.
D. The Trustee may, as an expense of administering the trusts, consult with legal counsel to be selected by it (who may be counsel for the Managing Agent or any of the Seabrook Participants), and the Trustee shall not be liable for any action taken or permitted by it in good faith in accordance with the advice of such counsel.
E. The Trustee shall have the right, from time to time, to be reasonably compensated for all services rendered hereunder and to be reimbursed for all reasonable expenses incurred by it in the administration of the trusts created hereby. The compensation and reimbursements due to the Trustee shall be shown in bills submitted to the Managing Agent.
F. The Trustee shall segregate into separately identified accounts such portions of the trust funds held in
t the name of a Seabrook Participant as the Managing Agent may direct.
G. The Managing Agent, as agent for the Participants, shall indemnify the Trustee against any liability it may sustain, in good faith.and without negligence, in the performance of its duties hereunder.
H. The Trustee shall maintain appropriate records of all deposits, investments and earnings thereon received by the trusts and all disbursements made from the trusts, and each month the Trustee shall provide to the Managing Agent a written statement of all transactions. In addition, the Trustee shall provide to the Managing Agent at least annually a report certifying as to the activity in each of the trusts over the period since the most recent report and the balances at the beginning and end of such period.
I. Each Seabrook Participant, and the agents of each shall have the right to review, inspect and audit the books and' records of the Trustee relating to the trusts established on behalf of such Participant, provided that the expenses of such review, inspection or audit shall be paid by the Seabr^ k Participant causing such review, inspection or audit to be performed. The Managing Agent and its agents shall also have the authority to make such a review, inspection and audit of any one or more of the trusts hereunder, in which case the expense shall be treated as an administration expense allocable to all the trusts hereunder or to the trusts reviewed, inspected or audited as the Managing Agent (in its sole discretion) shall deem reasvaable. All reviews, inspections and audits shall take place during normal business hours. Reasonable notice shall be given to the Trustee of any review, inspection or audit.
J. With respect to federal, state or local income taxes imposed on the trusts at the trust (rather than the Participant) level, the Trustee shall cause appropriate tax returns to be prepared and filed and shall submit a bill for such taxes to the Managing Agent on behalf of the Participants. The Participants shall be solely liable for the payment of such taxes and the Trustee shall have no liability therefor except to the extent of moneys received by the Trustee in response to such bill. The Managing Agent shall, on a timely basis, provide the Trustee with information, if any, not already in the Trustee's possession which is needed and requested with respect to the filing of such tax returns. The Trustee shall be exonerated from any and all liability resulting from the preparation and filing of tax returns to the extent such liability arises from written information supplied to the Trustee by the Managing Agent or a Participant. With the concurrence of the Managing i Agent, the Trustee shall have the right to challenge the obligation to make payment of any such taxes and shall have j
the authority to settle any proceedings related to such taxes,'and to receive refunds and take any other action necessary or appropriate in regard to taxes on the trusts.
K. The Trustee shall prepare and submit such applica-tions, reports and other documents as may be required by any governmental authority having jurisdiction over the trusts and performance of the trust obligations and activities specified by this Supplementary Pre-Operational Decommissioning Trust Agreement.
L. The Trustee shall have no obligation for any damage, cost, cause of action, charge or other liability arising from the operation or financing of the Unit.
M. Without in any way limiting the powers and authority conferred upon the Trustee by other provisions of this Supplementary Pre-Operational Decommissioning Trust Agreement or by law, and to the extent not inconsistent with the investment guidelines of Exhibit B as then in effect, the Trustee is expressly authorized and empowered as follows:
(1) To hold securities or other obligations in the name of the Trustee or of any other person, firm or corporation, without indication of any fiduciary capacity; (2) To give general or special proxies or powers of attorney (wnich may or may not be discretionary and with power of substitution) for voting or acting with
g
... 4, respect to securities; to deposit' securities with, or transfer them to, protective committees, voting trustees, or similar bodies; to join in any reorganiza-tion, and to pay assessments or subscriptions called for in connection with securities held by the Trustee; (3) To receive additions to the trusts and to hold and administer the same under the provisions hereof; t
(4) To compromise or submit to arbitration any tax, claim or matter in dispute;
-(5) If in the opinion of the Trustee it is necessary or advisable to do so, to borrow money for such time at such rate of interest or discount as the Trustee deems proper; to give notes or obligations therefor binding the trust property; and as security therefor to mortgage or to pledge real or personal property with or without power of sale; (6) To make any division or distribution of, or i payment from, the trusts, in kind by the fair and reasonable allotment and transfer of specific securities, at then current values, in lieu of cash, as a part or the whole of any one or more shares or payments; and (7) To credit particular receipts or gains, and to charge particular disbursements or losses or charges, to j l
income or to principal of the trusts or to apportion j l
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them between income and principal, whether such credits or charges relate to bonds acquired at a premium, to reserves or to any othe matter, all as the Trustee considers 74.r and reasonable in each case.
4 N. The Trustee shall not be liable for any acts, omissions or defaults of any agent (other than its officers j I
un? employees) or depositary appointed or selected by it with {
l reasonable care or for any acts taken or not taken at the J written direction of the Managing Agent. The Trustee shall be liable only for such Trustee's own acts or omissions (and 1 those of its officers and employees) occasioned by the willful misconduct or negligence of such Trustee (or that of l
its officers and employees). The officers and employees of the Trustee shall incur no individual liability in carrying out their duties hereunder.
Section 6.02. .Dersons Eliaible for Appointment as l Successor Trustee. Any Successor Trustee shall at all times ,
{
be a corporation, bank or trust company having its principal j office and place cf business in the United States of America, l with a combined capital and surplus of at least $100,000,000 and authorized under applicable laws to exercise corporate trust powers and subject to supervision or examination by appropriate federal or state authorities. If the Trustee publishes reports of condition at least annually, pursuant to 1
law or to the requirements of any supervising or examining l
authority referred to in this Section, then, for the purposes Jof this Section, the combined capital and surplus of the Trustee shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
Whenever necessary to avoid or fill a vacancy in the-office of the Trustee, the Managing Agent will, in the manner provided in Section 7.02, appoint a Trustee so that there shall at all times be a Trustee eligible under this Section.
Section 6.03. Meraer or Consolidation of the Trustee. Subject to the requirements of Section 6.02 hereof, any corporation into which the Trustee may be merged or with which it may be consolidated or any corporation resulting from any merger or consolidation to which the Trustea shall be a party or any corporation to which substantially all the business and assets of the Trustee may be transferred, shall be the Trustee under this Supplementary Pre-Operational Decommissioning Trust Agreement, without further act.
ARTICLE VII Successor Trustee Section 7.01. Resignation and Removal. The Trustee may resign by giving at least six weeks' prior written notice to the Managing Agent, such resignation to become effective on the day specified in such notice, or upon the appointment of s-p F
a successor and such successor's acceptance, whichever is later.
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The Managing Agent may at any time remove the Trustee, with or without cause, upon at least six weeks prior written notice, such notice to be in the form of an officer's Certificate declaring such removal and specifying the successor trustee appointed pursuant to Section 7.02.
Section 7.02. ADoointment of Successor. In the event the Trustee resigns, is removed, or becomes incapable of acting or is adjudged a bankrupt or insolvent, or if a receiver of such entity or its property is appointed or a public officer takes charge or control of such entity or its I
property cu affairs for the purpose of rehabilitation, conservation or liquidation, a vacancy shall be deemed to exist in the office of such Trustee, and a successor shall be .
l appointed by the Managing Agent. Such appointment shall take effect upon acceptance as provided in Section 7.03. j i'
'If , in a proper case, no successor Trustee shall have been appointed pursuant to the foregoing provisions of this i Section, or if appointed, shall not have accepted the appointment, within 60 days after (a) the effective date of the resignation of the Trustee, or (b) the occurrence of a vacancy in the office of the Trustee, a Participant may apply to a court of competent jurisdiction to appoint a successor Trustee.
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+ L Section 7.03. Acceptance of Accointment by Successor s
Trustgg. A successor Trustee appointed hereunder shall execute an instrument accepting such appointment and deliver one counterpart thereof to the Managing Agent and, if applicable, the court making such appointment. Thereupon, without any further act, such successor Trustee shall become vested with all the properties, rights, powers, trusts and duties of the retiring Trustee as orjninally named under this Supplementary Pre-Operational Decommissioning Trust Agree-ment.
Section 7.04. Duties of Retirina Trustee. Any Trustee who retires, resigns or is otherwise removed from office shall prepare and submit to the Managing Agent a final accounting with respect to the trusts established hereunder and, when requested by the successor Trustee in writing or by the Managing Agent, and upon payment of any lawful charges and disbursements, shall execute and deliver an instrument or instruments conveying and transferring to such successor Trustee all its properties, rights, powers, and trusts hereunder and shall duly assign, transfer and deliver to such successor Trustee all property and moneys held by it l
hereunder. The Trustee shall have the right to a judicial settlement of any final accounting before any appropriate court in the State of New Hampshire.
ARTICLE VIII Distribution of Assets upon Termination Section 8.01. Transfer to Successor Trust. In the event that one or more of the decommissioning trusts established pursuant to this Supplementary Pre-Operational Decommissioning Trust Agreement is; required or' permitted by an action of any governmental authority having jurisdiction to be transferred to another trust or trusts in order to satisfy the-purposes specified in Section 2.02, the Managing Agent shall have the right, by written notice to the Trustee to elect to have such trust or trusts merged into such other trust-or trusts. Upon the comp etion of such transfer, the specified trust shall terminate.
Section 8.02. Final Distribution. Any moneys remaining in a trust upon termination of the trust pursuant to
! Section 2.03 hereof shall be distributed by the Trustee to the Managing Agent for the benefit of the applicable Seabrook Participant, except as may be otherwise ordered by any governmental authority having jurisdiction over such distribution.
If any of the trusts created by this supplementary Pre-I Operational Decommissioning Trust Agreement is finally determined to be void for any reason by a court or other governmental authority having jurisdiction, any portion of the trust property which cannot then be applied to achievement of the purposes specified herein shall be distributed in the manner specified in this Section 8.02.
ARTICLE IX General Provisions Section 9.01. Sucolemental Trust Aareements. Subject to Section 2.03 hereof, this Supplementary Pre-Operational Decommissioning Trust Agreement may be amended or supplemented from time to time by the execution and delivery of one or more supplemental trust agreements by and between the Managing Agent and the Trustee, provided that the amendment or supplement has received any required approval or acceptance by any governmental body having jurisdiction.
Section 9.02. No Imolied obligations. This supplemetttary Pre Operational Decommissioning Trust Agreement shall not be interpreted to impose any duty, responsibility, obligation or liability upon the Trustee or the Managing Agent in addition to those duties, responsibilities, obligations and liabilities which are imposed by law or expressly specified in this instrument.
Section 9.03. Apolicable Law; Forum. This Supplementary Pre-Operational Decommissioning Trust Agreement and the trusts hereunder shall be governed by and construed in accordance with the laws of the State of New Hampshire. 1
, I Any dispute concerning the interpretation or application of this Supplement ary Pre-Operational Decommissioning Trust Agreement, or the distribution of any of its assets shall be initiated only in a state or federal court of competent subject matter jurisdiction located within the State of New Hampshire.
Section 9.04. Unenforceable Provisions. Any provision of this Supplementary Pre-Operational Decommissioning Trust
-Agreement which is prohibited or is determined to be-unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining' provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdic-tion.
Section 9.05. Written Chances and Notices. No term or provision of this Supplementary Pre-Operational i
Decommissioning Truut Agreement r.ay be changed, waivcri, ;
discharged or terminated, except by an instrument in writing signed by the party or other person against whom enforcement of the change, waiver, discharge or termination is sought; and any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given.
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Section 9.06. Counterparts. This Supplementary Pre-Operational Decommissioning Trust Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.
Section 9.07. Headines. Pronouns. The headings of the-1 various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.
A pronoun in the masculine gender shall include the feminine.and vice versa.
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e IN WITNESS WHEREOF, the parties hereto have caused this Supplementary Pre-Operational Decommissioning Trust Agreement to be duly executed by their respective authorized officers as of the date first above written. i Canal Electric Company The Connecticut Light &
Power Company )
EUA Power Corporation Hudson Light & Power Department Massachusetts Municipal Wholesale Electric Company Montaup Electric Company New England Power Company New Hampshire Electric ;
Cooperative, Inc.
Public Service Company of New Hampshire Taunton Municipal Lighting Plant United Illuminating Company Vermont Electric Generation &
Transmission Cooperative, Inc.
By NEW HAMPSHIRE YANKEE DIVISION OF PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE, as Agent By
Title:
FIRST NH INVECTMENT SER7 ICES CORPORATION, as Trustee By
Title:
Jcdtrata.nh
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EXHIBIT A Ownershin Shares of the Seabrook Participants Participant Ownershio Share Canal Electric' Company 3.52317%
Connecticut Light & Power Co. 4.05985%
EUA Power Corporation 12.1324%
Hudson Light & Power Department 0.07737%
Mass. Municipal Wholesale Electric Co. 11.5934%
Montaup Electric Company 2.89989%
New England Power Company 9.95766%
New Hampshire Electric Cooperative 2.17391%
Public Service Company of New Hampshire 35.56942%
Taunton Municipal Lighting Plant 0.10034%
United Illuminating Company 17.5%
Vermont Electric Generation &
Transmission Cooperative, Inc. 0.41259%
100%
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EXHIBIT B INVESTMENT GUIDELINES FOR THE SUPPLEMENTARY PRE-OPERATIONAL DECOMMISSIONING TRUST AGREEMENT PURPOSE The purpose of these guidelines is to define the objectives and limitations on the Supplementary Pre Operational Decommissioning Trust.
OBJECTIVES
- 1. To assure safety of principal.
- 2. To retain liquidity to meet decommissioning costs beyond the requirements of the Pre-Operational Demmmissioning Trust Agreement.
RESPONSIBILITY The Trustee will be responsible for the administration of the Supplementary Pre-Operational Decommissioning Trust, reporting to the Managing Agent, as required within the Supplementary Pre Operational Decommissioning Trust Agreement dated .
.1989, Article VI, Section 6.01, H.
PERMISSIBLE INVESTMENTS Investments shall be limited to the following investment vehicles:
- 1. United States Government Zero Coupon Bonds more commonly referred to as Separate Trading of Registered Interest and Principal of Securities (STRIPS).
- 2. United States Government Money Market Fund.
RISK CONTROL
- 1. Maturity
.A. U.S. Government Zero Coupon Bonds - The maturity of the portfolio shall be structured to satisfy the projected additional pre-operational decommissioning casts beyond the requirements of the Pre Operational Decommissioning Trust Agreement. See Exhibit C for maturity requirements.
B. U.S. Government Money Market Fund - The Fund must have assets of no less than S?50 million with a dollar weighted average maturity of no more than 120 days.
- 2. The Prudent Man Rule is to apply at all times.
- 3. All U.S. Government Zero Coupon Bond settlements must be delivery versus payments. Such securities may be delivered to a third party as mutually agreed to between the Trustee and the Managing Agent.
- 4. Recognizing the long term nature of the portfolio and its investment objective, active management of these securities can only be effected by direct authorization from the Managing Agent.
2 EXHIBIT C PRE-OPERATIONAL DECOMMISSIONING COSTS BLYOND THE REQUIREMENTS OF THE PRE-OPERATIONAL DECOMMISSIONING TRUST AGREEMENT SCHEDULE OF UNITED STATES GOVERNMENT ZERO CgTRQJi BOND MATURITY REQUIREMENT Supplementary Pre-Operational Pre-Operational Decommissioning Decommissioning Y3ar. Trust - Trust Intal I $ 14,018,650 514,018,650 2 6,736,673 6,736,673 3 1,773,467 1,773,467 4 1,835,538 1,835,538 5 2,184,999 2,184,999 6 1,966,274 1,966,274 7 2,035,094 2,035,094 8 2,106,322 2,106,322 9 2,180,043 2,180,043 10 2,256,345 2,256,345 11 2,335,317 2,335,317 12 1,756,899 5 660,154 2,417.053 13 1,161,169 1,340,481 2,501,650 14 1,127,349 1,461,858 2,589,207 15 1,094,514 1,585,316 2,679,830 16 1,062,635 1,710,989 2,773,624 17 1,031,684 1,839,017 2,870,701 18 1,001,635 1,969,540 2,971,175 19 972,461 2,102,705 3,075,166 20 944,137 2,238,660 3,182,797 21 916,638 2,377,557 3,294,195 22 889,940 2,519,552 3,409,492 23 864,019 2,664,E 05 3,528,824 24 838,854 2,813,479 3,652,333 25 814,421 2,965,743 3,780,164 26 790,700 3,121,770 3,912,470 i 27 767,670 3,281,737 4,049,407 28 16.663.009 5.610.15Q .._,2.213 2 15.1 s72.126.456 s40.263.513 m389.969 I
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L SEABROOK SUPPLEMENTARY PRE-OPERATIONAL DECOMMISSIONING TRUST AGREEMENT INDCX Paae ARTICLE I: DEFINITIONS 11.01 Defined Terms ...................................... 4 ARTICLE-II: IDENTIFICATION, NATURE AND l' DURATION OF THE TRUSTS 2.01 Identification of Trusts ........................... 6 2.02 Nature and Purpose ................................. 7 2.03 Duration; Amendment ................................ 8 ARTICLE III: THE MANAGING AGENT 3.01 Description.of Agency .............................. 9 3.02 Replacement of Managing Agent ...................... 9 ARTICLE IV: SUPPLEMENTARY PRE-OPERATIONAL DECOMMISSIONING TRUST FUNDS 4.01 Deposits to Supplementary Pre-Operational Decommissioning Trusts ........................... 10 4.02 Management of Trust Moneys ......................... 12 4.03 Withdrawal of' Trust Moneys ......................... 13 ARTICLE V: CONSOLIDATION, MERGER, CONVEYANCE 5.01 The Seabrook Participants May Consolidate or Merge on Certain Terms ................................. 15 5.02 Other Successors ................................... 16 ARTICLE VI: .THE TRUSTEE l
6.01 Acceptance of Trusts; Certain Terms of the Trusts .. 16 6.02 Persons Eligible for Appointment as Successor Trustee ................................ 22 6.03 Merger or consolidation of the Trustee ............. 23 ARTICLE VII: SUCCESSOR TRUSTEE 7.01 Resignation and Removal ........................... 23 7.02 Appointment of Successor ........................... 24 7.03 Acceptance of Appointment by Successor Trustee ..... 25 7.04 Duties of Retiring Trustee ......................... 25 l
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l ARTICLE'VIII: DISTRIBUTION OF ASSETS UPON. TERMINATION 1
8.01 Transfer to Successor Trust ........................ 26 {
8.02 Final Distribution ................................ 26- q l
ARTICLE IX: GENERAL PROVISIONS j 9.01 Supplemental Trust Agreements ...................... 27 9.02 No Implied Obligations ............................. 27 )
9.03 Applicable Law; Forum .............................. 27 9.04 Unenforceable Provisions ........................... 28 9.05 . Written Changes and Notices ........................ 28 I 9.06 Counterparts ....................................... 29 9.07 Headings, Pronouns ....................... ......... 29 SCHEDULE OF EXHIBITS Exhibit A: Ownership Shares of the Seabrook Participants Exhibit B: Investment Guidelines for the Supplementary Pre-Operational Decommissioning Trust Agreement Exhibit C: Pre-Operational Decommissioning Costs Beyond the Requirements of the Pre-Operational Decommissioning Trust Agreement -- Schedule of United States Government Zero Coupon Bond Maturity Requirement jedtrata.nh l
ATTACIDfENT 2 TO ENCLOSURE 1 of NYN-89045
'New Hampshire Yankee Post Five Percent Decommissionir.g Fund Stateunt of Application and Source of Funds" V
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NEW HAMPSHIRE YANKEE POST FIVE PERCENT DECOMMISSIONING FUND i
. STATEMENT OF APPLICATION AND SOURCE'OF FUNDS i CUMULATIVE TWENTY-EIGH'i YEAR TOTAL REQUIRED BY C
_ ALCUL ATED BY NHY CLI 88-10 APPLICATION OF FUNDS -
Decommissioning Costs S 19,710,510 S 19,700,000
. Fuel Storase 35,759,880 25,000,000 Fuel Disposal 13.000.000 13.000.000 68,470,390 _ 57,700,000 Excess Fuel Storage Adjustment (5.408.1301. -----
63,062,260 57,700,000 Contingency at 25% 15,765,565 14,400,000-Escalation (s) 33.562.14.1 ----
Total Application of Funds S112,389,969 5 72,100,000
.......... ------====
SOURCE OF FUNDS b
Surety Bond Cash Flow S 72,126,456 Zero Coupon Government Bond Maturities (Based on Initial Escrow Deposit of 56,275,040) 40.263.513 (1)
Total Source of Funds S!!2,389,969
===.. ----
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NOTES U) Projected zero coupon government bond raaturity value based on portfolio structure as of April 24,1989. See Exhibit 4.
.(2) Escalation, as determined from the President's Council of Economic Advisors and Office of Management and Budgets, at 3.5% of decommissioning costs, plus fuel storage plus contingency less excess fuel storage adjustment.
00A2 EXHIBIT 1 l
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i ATTACEMENT 3 TO ENCLOSURE 1 OF NYN-89045
'New Hampshire Yankee Post Five Percent Decommissioning Fund Annual Statement of Application and Source of Funds' j' -
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NEW HAMPSHIRE Y Ai4KEE POST FIVE PERCENT DECOMMISSIONING FUND ANNU AL STATEMENT OF APPLICATION AND SOURCE OF FUNDS APPLICAT10N OF FUNDS SOURCE _OF FUNDS Supplementary Total Post Pre Operational Five Percent $72.lM Surety Year Decommnsioninn Costs Bond Cash Flow Decommissioning Trust (1)
Total 1 S 14,018,650 $ 14,018,650 $ 14,018,650 2 6,736,673 6,736,673 6,736,673 3 1,773,467 1,773,467 1,773,467 4 1,835,538 1,835,538 1,835,538 5 2,134,999(2) 2,184,999 2,184,999 6 1,956,274 1,966,274 1,966,274 7 2,035,094 2,035,094 2,035,094 8 2,136,322 2,106,322 2,106,322 '
9 2,130,043 2,180,043 2,180,043 10 2,256,345 2,256,345 2,256,345 11 2,335,317 2,335,317 2,335,317 12 2,4i7,053 1,756,899 5 660,154 2,417,053 13 2,531,650 1,161,169 1,340,481 2,501,650 14 2,539,207 1,127,349 1,461,858 2,589,207 15 2,679,830 1,094t514 1,585,316 2,679,830 16 2,773,624 1,062,635 1,710,989 2,773,624 17 2,870,701 1,031,684 1,839,017 2,870,701 18 2,971,175 1,001,635 1,969,540 2,971,175 19 3,075,166 972,461 2,102,705 3,075,166 20 3,112,797 944,137 2,238,660 3,182,797 21 3.234,195 916,638 2,377,557 3,294,195 22 3,439,492 889,940 2,519,552 3,409,492 23 3,528,824 864,019 2,664,805 3,528,824 24 3,652,333 838,854 2,813,479 3,652,333 25 3,730.164 814,421 2,965,743 3,780,164 26 3,912,470 790,700 3,121,770 3,912,470 27 4,029,407 767,670 3,281,737 4,049,407 28 ._ 2 2.7 ? 315J. 16.663.009 5.6!0.150 22.273.159
$j 12.3!9.969 S72.126.456 S40.263.513 S112.389.969 i
NOTES D) Based on initial npplementary pre operational decommissioning trust fundin8 of 56,275,040.
- 0) For year 5, see Exhibit 3 for associated monthly cash flow.
EXHIBIT 2 l
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ATTACWJNT 4 TO ENCLOSURE 10F NYN-89045
'New liampshire Yankee Post Five Percent Deconuissioning Fund Year Five Monthly Cost Summary' l
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NEW HAMPSHIRE YANKEE POST FIVE PERCENT DECOMMISSIONING FUND YEAR 5_ MONTHLY COST
SUMMARY
Excess Decommis- Fuel sioning Fuel Stora8e Fuel Contingency
. Mon ths Costs U) StoraRe Adiustment Discosal At 25% - Escala tion (2) Total 49 Si 10,370 5 110,370.- S(110,370) $ 27,592 $ 20,353 5 158,315 50 66,280 110,370 44,163 32,575 253,388 51 66,280 110,370 44,163 32,575 253,388 52 66.280 __110.370 44.163 32.575 253.38_R Sub-Total 309.210 441.48_0_ (110.3701 - --_ 118.078 160.081_ 918.479 53 110,370 27,592 20,353 158,315 54 110,370 27,592 20,353 158,315 55 110,370 27,592 20,353 158,315 56 110,370 27,592 20,353 158,315 57 110,370 27,592 20,353 158,315 58 110,370 27,592 20,353 158,315 59 110,370 27,592 20,353 158,315 60 110.370 27.592 20.353 158.315 Sub-Total 882.960 -
_.220.736 162.824 1.266.520 Total $309.210 S1.324.440 S(110.3703 ---- S380.817- S280.902 52.184.999 l
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(1) Costs as shown in "The Plan in Response to NRC Ordct CL188-07" issociated wnh fuel pool decontamination (5330,410) are transferred to year 28.
1.
L (2). Escalation, as determined from the Presiden 's Council of Economic Advisors and Office of I
Management and Budgets, at 3.5% of decommissioning costs, plus fuel storage plus contingency less excess fuel storage adjustment. l l
EXHIBIT 3 i
4 ATTACHMENT S TO ENCLOSURE 1 0F NYN-89045
'New Hampshire Yankee Post Five Percent Decommissioning Fund Supplementary Pre-Operational Decommissioning Trust Pro Forma Schedule of Investment Portfolio" 9a 6
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- 00A2' NEW HAMPSHIRE YANKEE POST FIYE PERCENT DECOMMISSIONING FUND SUPPLEMENTARY PRE-OPERATIONAL DECOMMISSIONING TRUST PRO FORMA SCHEDUI.E OF INVESTMENT PORTFOLTO .
I Tott!
Purchase Price Acquisi-ion Value at Effective Annual Year Per $1.000 Unit Prict Ma tu rity _ Yield to Maturity 1
2 3
4
'5 6
7 8
9 10 11 12 5330.00 $ 217.151 5 660,154 9.03 %
13 302.50 405.296 1,340,481 9.02 14 278.50 407,;27 1,461,858 8.98 15 257.00 407.426 1,585,316 8.93 16 236.60 404,120 1,710,989 8.90 17 216.90 39E.!83 1,839,017 8.90 18 199.50 392323 1,969,540 8.88 19 183.60 386.?57 2,102,705 8.86 20 168.00 376.)95 2,238,660 8.87
- 21 154.40 367,)95 2,377,557 8.86' 22 142.20 358.281 2,519,552 8.84 23 131.00 349.289 2,664,805 8.82 24 121.00 340.231 2,813,479 8.79 25 111,30 330.387 2,965,743 8.78 26 102.90 321.230 3,121,770 8.75 27 95.50 313,406 3,281,737 8.71 28 88.90 498.'43 5 610.150 8.66 56,275. 40 540,263,513 NOTES D) Projected zero coupon government bond mt
- urity val" based on portfolio structure as of April 24,1989. Year 11 is associated to be :stendar yt.ar 2001.
(2) Value at maturity is based on a November aaturity assumptien.
(3) Total acquisition price reflects ('unds paid u acquire zero coupon government bonds at the time that the supplementary pre-operatanal decommissioning trust is funded based on initial deposit of $6,275,040. '
EXHIBIT 4
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ATTAClaiENT 6 TO ENCLOSURE 1 0F NYN-89045 NHY to DOE Letter dated April 21, 1989 E. A. Brown to V. Henson Moore I
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New Hc:mpshire Edward A, Brown ,
President and Chief Executive Cmicer April 21, 1989 l NHY #890231 The Honorable W. Henson Moore
, . Deputy Secretary U.S. Department of Energy 1000 Independence Avenue, S.W.
Washington, DC 20585 l
References:
(a) U.S. Department of Eriergy Contract No. DE-CR01-86RW00111 Contract for Disposal of Spent Nuclear Fuel and/or High Level Radioactive Waste, dated June 27, 1986 (b) U.S. Court of Appeals Decision for the District of Columbia
-Circuit No. 68-1194 Consolidated Edison Company of NY, Duquesne Light Company, and Ohio Edison Company vs. U.S.
DOE, dated Harch 17, 1,989.
Dear Mr. Secretary:
In a public meeting held on Thursday, April 1989, New Hampshire Yankee (NHY) representatives met with the Nuclear Regulatory Commission staff. The purpose of the meeting was to discuss the staff's comments regarding their review 'of the Seabrook Joint Owners response to an NRC Commission Decision (CLI-88-10) requiring a post low power testing decommissioning fund in the remote event that a full power license is not issued. In determining the funding requirement, the Connission envis(- ed onsite long term storage of the fuel until the year 2017. At the April eeting, discussions were held with .Ms the staff regarding what DOE's assessment of the spent fuel disposal fee would be at that time.
As a result, the NRC staff requested that NHY obtain clarification fror DOE that the present contract held with DOE covers the Seabrook fuel after low power testing. A condition imposed by the NRC restricts Seabrook's low power testing program to 0.75 effective full power hours which is less than 1.5 MWD /HTU.
Our present contract with DOE applies a disposal fee in the amount of 1.0 mil per kilowatt-hour (1 mil / kwhr) of electricity generated at the output terminal of the turbine generator. Since no electricity will be generated as part of the low power testing program, NHY seeks DOE's clarification on the appropriate disposal fee applied under these circumstances and when that fee, if any, would be collected.
New Hampshire Yankee Division of Pubhc Servi::e01 NewHampshire n' mme ser vn :w weirdwr '
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P.O. Box 300. Seabrook NH 03874 '.76tephone (603) 476952f . 7
7-l '
j Honorable W. Henson Moore April 21, 1989 Washington, DC 20585 17,1989, it is not Furthermore, in light of a recent US Court of Appeals Decision, dated March specifically clear as to the proper application of the fee in Seabrook's instance. As noted in the Court's recent Decision that Congress {
I plainly intended "that I
that is actually sold".
the ongoing fee applies only to generated electricity Therefore, New Hampobire Yankee requests that DOE confirm that:
(1) The post low power testing slightly irradated fuel f alls under the definition and of spen: fuel as defined in the reference DOE contract; (2) The 1 mil / kwhr fee does not apply in the above instance. If it is l not applicable, please advise us of the methodology DOE would use in determining the appropriate disposal fee, if any, and when that fee would be collected.
As it appears that the low power license can be issued shortly upon resolution of the above issues, New Hampshire Yankee respectfully requests that DOE provide its response at the earliest possibic date so as not to affect the schedule for issuence of the low power license.
L Respectfully submitted, As agent for the Joint Owners of Seabrook Station
/ '
1 Edward A. Brown EAB:bes e
e
____m________ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _
ATTACIMENT 7 TO ENCLOSURS 1 0F NYN-89045
'US Department of Energy Contract No. DE-CE01-86RW00111 Contract for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste" dated June 27, 1986 e
4s e
I
- - a U.S. DEPARTHEET OF ENERGY CONTRACT 30.DE=fE01-86RW00111 COFTRACT FOR DISPOSAL OF SPKWT NUCLEAT.1UEL AND/OR HICH-LEVEL RADIOACTIVE WASTE THIS CONTRACT, entered into this 27th day of June , 14, by and between the UNITED STATES OF AMERICA (hereinaf ter referred to as the
" Government"), represented by the UNITED STATES DEPARTMENT OF ENERGY (hereinafter referred to as " DOE") and the New Hampshire Yankee Division of the Public Service Company of New Hampshire (hereinafter referred to as the ,
" Purchaser"), a corporation orEanized and existing under the laws of the State of New Harpshire, acting on behalf of Public Service Conspany of New Hampshire, United Illuminating Company (a Connecticut corporation), Central Maine Power Company (a Mains corporation), Fitchburg Gas and Electric Light Company (a Massachusetts corporation) Montaup Electric Company (a Massachusetts corporation). New England power Company (a Massachusetts corporation), Central Vermont Public Service Corporation (a Vermont corporation), Canal Electric Company (a Massachusetts corporation), the Connecticut Light and Power Company (a Connecticut corporation) New Hampshire Electric Cooperative. Inc. (a New Hampshire corporation) Town of Hudson, Massachusetts, Light and Power Department (a Massachusetts naanicipality), Vermont Electric Cooperative, Inc.
(a Vennont corporation), Massachusetts knicipal Wholesale Electric Company (a Massachusetts public corporation formed under Chapter 775 of Massachusetts Act of 1975), Maine Public Service Company (a Maine corporation), Bangor Hydro-Electric Company (a Maine corporation) Taunton knicipal Lighting Plant Ccanission (a Massachusetts municipality)
WITNESSETH THAT:
WHEREAS, the DOE has the responsibility for the disposal of spent nuclear fuel and high-level radioactive waste of domestic origin from civilian nuclear power reactors in order to protect the public hsalth and safety, and the environment; and WHERF.AS, the DOE has the responsibility following commencement of operation of a repository, to take title to the spent nuclear fuel or high-level radic, active involved as expeditiously as practicable upon the request of the generator or owner of such waste or spent nuclear fuel; and WHEREAS, all costs associated with the preparation, transportation, and the disposal of spent nuclear fuel and high-level radioactive vaste from civilian nuclear power reactors shall be borne by the owners and generators of such fuel and waste.
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- r - .. . .
- l WDEAS, the DOE is required to collect a full cost recovery fee from. owners and generators delivering to the DOE such spent nuclear fuel and/or high level radioactive waste; and WGEAS, the DOE is authorizad to enter into contracts for the pirmanent disposal of spent nuclear fuel and/,or high-level radioactive waste of
. domestic origin in DOE f acilities; an'd .
WGEAS, the Purchaser desires to obtain d'isposal services from 00E; and WDEAS, DOE is obligated and willing to provide such disposal services, under the terms and conditions hereinafter set forth; and .
WGEAS this contract is made and entered inte under the authority of the
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DOE Organization Act (Pub. L. 95-91, 42 U.S.C. 7101 e sec.) a'nd the
- Eclear Wasta Policy Act of 1982 (Pub. L 97-425, 42 U.S.C. '10101 et sec.)
MCh, THEREFORE, the parties heretoido heraby agree as follows:
ARTICLE I - DEFINITIONS.
As used throughout this contract, the following terms shall have the meanings set forth below:
- 1. The term ' assigned three-month period" ecans the period that each Purchaser will be assigned by DOE, giving due consideration to the Purchaser's
)
assigment preference, for purposes of reporting kilowatt hours generated by the Purchaser's nuclear power reactor and for establishing fees due and payable to DOE.
- 2. The term " cask" means a container for shipping spent nuclear fuel and/
or high-level radioactive waste which meets all applicable regulatory I
requi rteents.
2 e
L _ _ _ _ _ _ _ _ _
y - .- .
- 3. The tarv ' civilian nuclear pwer reactor" neans a civilian nuclear
' a peer 1:lant reouired to be licensed under Sections 103 or 104(h) ci the
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Atomic Energy Act of 1954, .as anenced (42 U.S.'C. 2133, 2134(b)).
I
- 4. The term 'Cornission" neans the United States Muclear Regulatory Comi ssion. .
5 The tam ' contract" reans this agreement and any duly executed menwns
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cr edification thereto.
- 6. The tam Contracting Officer' means the person executing this contract on behalf of the Goverrment, and any other officer or civilian ecp1t,yee who is a pr:cerly designated Contracting Officer of the DOE; a,d n the *.em includes, except as otherwise provided in this contract, the authorized representative of a Contracting Officer acting within the limits of his auth: rid
- 7. The ters ' delivery" r[ cans the transfer of custody", f.o.b. carrier, of spent nuclear fuel or $igh-level radioactive waste from Purchaser to DOE at the Pur' chaser's civilian nuciar power reactor or such other derestic sita as r.ay be desipated by the Purchater and approved by DOE.
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- 8. The tem ' disposal" means the anplacement in a rtpository of high-level radioactive waste, spent nuclear fuel, or other highly radioactive waste with noloreseeable intent of recevery, whether or r>ot such mplacenent percits rtcovery of such wtsta.
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- 9. The tem "D0E' mans the United $tates Departr.ent of Ener1;y o,r any duly-authorized representative--thereof, including the Contracting Officer; -
- 10. The tem
- DOE f acility' rsears a facility operated by or on behalf of
- 00E for the purpose of disposing of spent nuclear fuel and/or high-level radioactive waste, or such other facility (f es) to which spent nuclear fuel and/or high-level radioactive waste may be shipped by DOE prior to its transportation to a disposal . facility.
- 11. The term " fell ccst recovery," etans .the receuprent by 00E, through Purchaser fees and any interest earned, of all direct costs, indirect costs, and all allocable overtead, consistent with generally accepted accounting principles consistently applied., of providing disposal services
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and conducting activities authorized by the Wucle'er Waste Policy Act of 1882 (Pub. L.97-425). As used herein, the tem " cost" includes the application of Nuclear Vaste Fundbnies for those uses expre'ssly set for*J in section 302(d) and (e) of the said Act and all other uses specified in the Act.
- 12. The ters "bigh-level radioactive waste" (H1.V) reans -
(a) the highly radioactive rsaterial resulting from the reprocessing o' spent nuclear fuel, including liquid wasta produced directly in reprocessing and any solid r.aterd derived free such liouid ssste that contains fission products in sufficient concentrations'; and
' (b) other highly radioactive riaterial that the Cemission, censistert
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wi th exi sting lew, detemines b'y rule reoaires perranent isolation.
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l l
., '.... . , 1 13*.
The term " kilo. ct hours, generated" asans electrdty generated by aue14 r f uel at a civilian suelaar power reactor specified in Appendiz
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A hereto as sensured at the output terminals of the turbine generator, including an equivalent amost of electricity for any process heat generated'by the reactor and'used other than at the reactor.
- 14. The taru " metric tons uranius' reans that measure of weight ,ecufvalent to 2,204.6 pounds of uranium and other fissile and fertile natarial that are loaded into a reactor core as fresh fuel.
- 15. The tars " Purchaser's site
- s'eans the location of Purchaser's civilia nuclear power reactor or such other location as the Purchaser may d.e signata,
- 16. The tam
- quarterly Treasury rate" reans the current value of funds rate as specified by the Treasury Fiscal Requirements Hanuel, Yolume 1 Part 6, This rate is published quarterly in the Federal Register
.. section 8020.20.
prict to the beginning of the affected quarter. ,
c 17 .
The ters ' shipping let" means a specified quantity of spent nuclear fuel or high-lavel,r dioactive saste designated by Purchaser for delivery to DOE beginning on a specified date.
18 .
The tem " spent nuclear fuel' (SNT) means fuel that has been withdrewn from a nuclear reactor folleving irradiation, the constituent elements of which have not been separated by reprocessing.
- 19. The term ' spent nuclear fuel and high-level radioactive waste of denestic origin
- seans irradiated fuel r.atarial used, and radioactive wastes re-sulting fra such use, in nuclear pcver reactors located only in the United S tJ te s. .
- 20. The tern " year' emans the period which begins en October 1 and ends on Septerber 30. .
5
ARTICLE II - SCOPE This contract applies to the delivery by Purchaser to DOE of SW and/or MLW of dcraestic ori, gin from civilian nuclear power reactors, acceptance of title by DOE to such SW and/or MLW, subsequent transportation, and
' dispossi of such SW and/or MLW and, with respect to such material, establishes the fats to ba paid by the Purchaser for the servicas to be rendered hereunder l by DOE. The ,5NF and/or MLW shall be specified in a delivery comit:nent schedule
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as provided in Article Y below. The services "to be provided by DOE unda'r this contract shall besin, after comencunent of facility operations, not later than January 31, 1998 and shall continue until such time as all SW and/or HLW from the civilian nuclear power reactors specified in Appendix A, annexed hereto and made a part hereof, has teen disposed of.
ARTICLE III - TERM til such The ters of this ' contract shall be frcan the date of execution site (s) and disposed time as DOE has accepte<., tra.nsported from the Purchaser' of all SW and/or MLW of dcznestic origin from the civilian nuclear power reactor (s specified in Appendix A .
ARTICLE IV - RESP 0kSIBILITIES OF THE PARTIES A. Purchaser's Responsibilities l
l l
.l. Discharge infor;.ation_ i 1986 f On an annual basis, comencing October 1, M13,, the l (a)
Purchaser sha.11 provide DOE with infor=ation en actual discharges to date and projected discharges for tr.e next 6
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E_______________
.i ' . h. '
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tan (iO)-years in the form ar.d contant set forth in
. Forin RW- 8 59 .
. pf r 4p( AADf%tdxbatttS)206(5&dd$Xpe'M4Cf. The information to be provided will include estimatas and
- - . projections and will not be Purchaser's firm ccenitment with respect to discharges or deliveries. ,,
- - (b) 16o later than Oct:bar 1, N', the Purchaser shall provide DOE with specific information en:
(1) Total spent nLclear fuel inventory as of April 7,1983; (tp:4stdim=*A% bess s ebt4esortec9et:ftet:th ,
. par *4 evis extraccocccoct.:$o$oock:>1220:4;W4ot, ISS$xtsmMrhetfisce:ect:pttnsofocotttestetttm:4W -
thsxcsrupctwttest4h:tht:ceretntop&ttAttyttM:Te
. riinar142n@xoc+vx&ofmete+:ofotte:Mecetxand unkwrxedxperth:oco6ceacMio6t+f49tioarae::Mpart:tp*e prwttut4 -
(c) In the event that the Purchaser fails to provide the annual forecast is the form and content required by 00E,
- DOE say, in its sole discretion, require a rescheduling of any delivery excitzent uhedule then in effect.
e e e
7 a *
],, : x ;.
9
- 2. Preparation for T'ransoortation (a) The Purchaser shall arrange for, and provide, all preparation, pacts;fng, re~ quired inspections, and loading activities nece'ssary for t's transportation of SMF and/or MLW to the DOE facility.
The' Purchaser shall notify DOE of such activities sixty (60) days prior to the corancersent of such activities. The preparatory activi,tf e.s by the Purctaser shall be r.ade in accordance with all applicable laws and regulations relating to the Purchaser's responsibilities hereunder. DOE may desi;94te a representative, to observe the preparatory activities cor. ducted by the Purchaser at the Purchaser's site, and the Purchaser shall afford access to such representative.
(b) Except as ot?ervise agreed to by' DOE, the Purchaser shall advise DOE, in writing as specified in Appendix F, annexec j i
- hereto and Pade a part bereof, as to the description of the
- f mate-ial in each shipptr*; 1ot sixty (60) days prict to scheduled DOE transportation of that shipping lot l
)
(c) The Furchaser sball be respor.stble for incidental r.eintenarse, protection and preservation of any and all shipping casks furr.f shed to tt.e Purchaser by DOE for the performance of this
. cont act. The_ Purchaser shall be liable for any less of or s
dea;e to such DOE-furnished property, and for expenses 3
incidental to such loss or damage while such casts are in the possession and control of the Purchaser e2 cept as otherwise
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- provided for hereunder. Routire cast r.aintenance, such as schefuled overtauls, shall not be the responsibility of the Pu re as er. .
l S .
l
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,[..
[.. .
. :, / .
- 3. DOE Responsibilities _
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- 1. DOE shall accept title to all SW and/or NLW, of dcnestic origin, generated by.,the divilian rruclear power reactor (s) specified in Appendix A, provide subsequent transpohation for such r.aterial to the DOE facility, and dispose of such saterial in accordance with the terms of this contract.
- 2. 00E s' hall arrange for, and provida, a cask (s) and all necessary transportation of the SW and/or KLM frca the Purchaser's site to the DOE facility. Such cask (s) shall be furnished sufficiently in advance to accommodate scheduled deliveries.
Such casks (s) shall be suitable for use at the Purchaser's site, meet applicable rtyulatory requirements, and be ac:mpanied by pertinent information including, but not limited to, the following:
- (a) written procedupes for cask handling and loacing, inclucing specifications on Purchaser-furnished cannisters for centainmen:
of failed fuel; (b) training for Purchaser's personnel in cast handling anc leading, as say be necessary; (c) technical information, special tools,' equipment, lifting
- trunnions, spare parts and conseables needed to use
~
and perform incidental maintenance on the cast (s); and (d) sufficient documentation en the equipnent supplied by DOE.
- 3. CCE may fulfill any of its obligations, or take any action, under this contract either directly or through contractors.
9 -
-- s------..
- p. .
- 4. DOE shall annually provide to the Purchaser pertinent information on the waste disposal program including information on cost projections, project plans and progress reports.
' 5.(a) Beginning on April 1.1H1. DOE shall issue an annual 4
acceptance priority ranking for receipt of SW and/or HLW at
, e l
. the 00E repository. This priority ranting shall be based on j
~
the age of SW and/or HLW as calculated from the date of
. discharge of such saterial from the civilian nuclear power
~
reactor. The oldest fuel or waste will have the highest priority for acceptance, except as provided in paragraphs .
l 8 and D of Article Y and paragraph B.3 of Article VI hereof.
(b) Beginning not later than July 1,1987 DOE shall issue an annual capacity report for planning purposes. This report n
- shall set forth the projected annual ref.eiving capacity for the DOE facility (ies) and the annual acceptance ranking j
- rtisting to DOE contracts for the disposal of SW and/or NLW including, to the extent available, capacity information for tan (10) years following the projected commencement of operation of the initial DOE f acility.
ARTICLE Y - DELIVERY OF SMF AND/OR NLW A. Description of SMF and MLV The Purchaser shall deliver to DOE and DOE shall, as provided in this contract, accept the SW and/or HLW which is described in accordance with Article VI.A. of this c'entract, for disposal thereof.
10 6
l l
. . . 1
- 3. Delivery termitr.ent Schedule ,
- 1. Delivery comitnent schedule (s), in the f,cm set forth in Appendix ,
C annexed he,re',o and rade a part' hereof, for delivery of $8F and/or MLW shall be ,
i I
furnished to DOE by Purchaser. A,fter DCE has issued its proposed acceptance priority I
ranking, as described in paragraph I.5 of Article IY hereof, beginning January 1, l 1992 the Purchaser shall submit to DOE the delivery ctr6f t=ent schedule (s) which ,
i
! I shall identify all $HF and/or HLW the Purchaser wishes to deliver'to DOE beginning , ,
' sixty-three (63) cont.bs thereafter. DOE shall approve or disapprt:rve such schedules within three (3) renths after receipt In the ' event, of disapproval, 00( shall
.fvise the Purchaser in writin9 of the reasons for such disapproval and reouest a rcvisM schedule from the Purcheser, to be sutmitted to DOE within thirty (30) days af ter receipt of DOE's notice of diopproval.
- 2. DOE stall approve or dis' approve such revised schedule (s) within sixty (60) days af ter receipt. In the, event of disapproval, DOE shall advise s -
the Purchaser in writing of the reasons for such disapproval and shall submit its proposed schedule (s). If these are not acceptatle to the Purchaser, the parties sball prtrptly seek to nefotiate rutually acceptable schedule (s).
Purchaser shall have the right to aryust the quantities of SMF and/cr HLW plus or minus (+) twenty percent (205), and tne delivery schedule up to two (2) r.cnths, until the submission of the final delivery schedule.
C. Final Delivery Schedule Final deli.very schedule (s), in the fore set forth in Appendix D, annexed hereto and made a part hereof, fer delivery of SKF and/or RLV covered by an 11 a
' ~
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approved delfvery comitment schedul,e(s) ,shall be furnished to ' DOE by Purchaser.
The Nrchaser shall submit to DOE final delivery schedules not less than twelve (12) sonths prior to the delivery date specified therein. 101 shall approve or disapprove a final delivery schedule within forty-five (45) days after receipt.
In the event of disapproval, DOE shall advise the Nrchaser in writing of the reason's for such disapproval and shall request a revised schedule from the 1
Purchaser, to be submitted to DOE within thirty (30) days after receipt of DOE's notice of di:=p'pr val. DOE shall approve or disapprove such revised schedule (s) within sixty (60) t.'3ys after receipt. In the event of disapproval, DOE shall advise the Purchaser in writing of the reasons for such disapproval and shall submit its proposed schedul0(s). If these are not acceptable to the Nrchaser, the parties shall promptly seek to negotiate mutually acceptable schedule (s).
D. Emergency Deliveries Emergency deliveries of SW and/or MLV may be accepted by DOE
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before the date provided in the de1Nery cccEittent schedule upon prior written approval by DOE.
E. Exchanges Nrchaser shall have the right to deter =ine which SW and/or HLW is
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delivered to DOE; provided, hewever, that Nechaser shall cceply with the re-quirements of this contract. Nrchaser shall have the right to exchange approved delivery ccmitment schedules with parties to other contracts with DOE for diiposal of 5W and/or HLW; provided, h:=ever, that DOE shall, in advance, have the -ight to approve or disapprove, in its sole discretion, any such exchanges. Mt less than six (6) months prior to the delivery date
. 12
specified in the Purchaser's approved delfvery ccenitzent schedule, the Purchaser'sh 11 submit to DOE an exchange request, dich states the priority rankings of 5oth the Purchaser hereunder and any other~ Purchaser with when the .
exchange of approved delivery ccenitme'nt schedu1es is proposed. DOE shall
. approve or disapprove the proposed exchange within thirty (30) days after ,
rec eipt. In the event of disapproval DOE shall advise the Purchaser'in writing of the reasons for. such disapproval.
A3TICLE VI . CRITERIA FOR DISPOSA1:
A. General Recuiree.ents _
- 1. Criteria (a) Except as otherwise provided in this contract, DOE shall accept hereunder only such SW and/or HLW which meets the General Specifications for such fuel and waste
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as set forth in Appendix E, annexed hereto and made a part
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hereof.
(b) Purchaser shall accurately classify SW and/or HLW prior to delivery in accordance with paragraphs B.and D of Appendix E.
i 2 P rocedures (a) Purchaser shall provide to DOE a detailed description of
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the SW and/or Hl.M to be delivere: hereunder in the form ard wontent a set forth in Appendix F, annexed hereto and made a part hereof. Purchaser shall promptly advise DOE of any changes in said SHF anc/cr MLV as soon as they 13 0 0
becces taown to the Purchaser.
(b) DOE's obligation for disposing of ST under this contract also extends to other than standard fuel; however, for any SW which has been designated by the Nrchaser as other than standard fuel, as that tern is defined in Appendix t, the Nrchaser shall 'obtain delivery and procedure confirmation
- from DOE prior to delivary. DOE shall advise Purchaser '
~
within, sixty (60)* days after receipt of such confirmation request as to the technic'ai feasibility of disposing of such ,
. fuel on the currently agr'eed to schedule and any schedule adjustment for such services.
- 3. Acceotance Procedures
- 1. Acceotance priority Rantina Delivery creiment schedules for SW and/or HLW may require the dispot of more saterial than the annual capacity of the DOE disposal facility (or facilities) can acconcodate. The following acceptance priority ranking vill be vtilized-l l
(a) Except as may be provided for in subparagraph (b) belew and !
Article Y.D of this contract, acceptance priority shall be
._ based ,upon the age of the SW and/or HLW as calculated from the q l
1 1
. 14 J 8
.. . t, - 1
- . i date of discharge of such saterial from the civilian nuclear f power reactor. DOE will first accept from Purchaser the oldest SW I
and/or MLW for disposal in the DCE facility, except as otherwise
. provided for in paragraphs B , 0 and E of Article V, l
l (b) Notwithstanding the age of the SW and/or MLW, priority may be accorded any SW and/or HLW removed from a civilian nuclear power reactor that has reached the end of its useful life or has been shut down permanently for whatever reason.
1
- 2. Verification of SF and/or HLW During cask loading and prior to acceptance by DOE for transporta-tion to the DOE facility, the SW and/or HLW description of the shipping lot shall be subject to verification b'y DOE. Tr the extent the SW I
and/or HLW i, consistent with the description submitted and approved,
~h in accordance with Appendices E and F. DOE agrees to accept such SW and/or HLV for disposal when DOE has verified the SW and/or MLW description, determined the saterial is properly leaded, packaged, marked, labeled and ready for transportation, and has taken custody, as evidenced in writing, of the saterial at the Purchaser's site, f.o.b.
carrier. A properly executed off-site radioactive shi;nent record describing cask contents must be prepared by the Purchaser along with a signed certification which states: "This is to certify that the above-named sattrials are properly described, classified, packaged, sarked and labeled and are in proper condition for transfer according to the applicable regulations of the U. S. Deparuent of Transportation.'
4 l 15
- 3. Imor6perly Described $NF and/or HLV .
.(4) Prior to Acceptance - If SET and/or HLW is' determined by DOE .
to be irproperly" described prior to ecceptance by DOE at the Purchaser's sit.e DCE shall prwptly notify tha Purchaser 1n ,
writing of such det.arsination. DOE reserves the right..in its sole discretion, to refuse to accept such dhF and/or HLW until the $NF ar#/or HLW has been properly described. The Purebaser shall'not transfer such $1F and/or HLW to DOE unless 00E ' agrees to accept such $11F and/or HLW under such other arrange *ents as may be agreed te, in writing,'by the parties.
(b) After Accettaree - If subsecuer.t to its acceptance 00E finds that such 511F and/or HLW is improperly described, DCE shall.
promptly notify the Purchase ~r, in writing, of such finding. In I .
- the event of such notification, Purchaser shall previde DOE with a proper designation within thirty (30) days. In the event of a failure by the PurcFaser tn provide such proper designation, DOE r.ty hold in abeyance any and all deliveries scheduled be reunde r.
ARTICLE Y11 - TITLE Title to all SXF and/or HLW ac:epted by DOE for disposal shall pass to DCE at the' Purchaser's site as previded for in Article YI hereof. DOE shall be 16
. I e
soi.1f responsible for control of all saterial vpen passage of title. 00E shall have the right to dispose as it sees fit of any $NF and/or HLV to which it has taken title. The P[rchaser shall have n'oclaim [against DOE or the Govern.
sent with respect to such SW or Hty nor shall DOE or the Goverr6ent be oblipted to compensate the Purchaser for such saterial.
ARTICLE VIII - FEES AND TUMS OF PAYMENT * ,
A. Fees -
- 1. Effective April 7,1983 Purchaser shall be charged a fee in the amount of 1.0 mill per ki)owatt-hour (1M/KWH) on electricity generated by Purchaser's nuclear power reactor (s). The said fee shall be paid as specified in paragraph B,of this Article VIII.
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- 4. 001 will annus11y review the eseouacy et tre iltAW fee, t necessary, in order to assure M1 cost recovery by the Govertrent. Any proposed adjustr.ent to the said fee will be transmitted to* Congress and shall be. effective af ter a perto# of Af nety'(90) $sys of continueus sesst'on has elapsed folicwtog receipt of such transmittal unless either House of Congress adopts a resolution disapproving the proposed adjustment.
Any adjustment to the 1 MAW fee under paragraph A.1. ef this Article V111 shall be prospective. .
- 9. Paysent
- 1. For electricity generated by the Purchaser's civilian nuclear l
power reacter(s) on er af ter April 7,1953, fees shall be peic cuarterly ty l f business the Purchaser and twst be received by 00E not later than the c ose o on the last business day of the month following the ent of each assignec three I 7417>tMQU6aL1thtX11Flel e:onth ptried. MIMMMWEW1 3xnntx11mexactjn*reotxatxiad>Ms)cotoebilixhtt ApH.XFJ,29ECttF'pmX1F4X11FJ.
d u r x a n x x x xx xx x x xx x xxx x fM.xitm$cd %texx x x x xx xx x x The assigned tbrte month period, for purposes of paMnt 1, 1986.
and reportine of kilowatt hours, shall begin October Mecare tocoM.
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- 3. Method of Payment (a) Papents shall be made by wire transfer, in accordance with instructions specified by DOE in Appendix G, annexed hereto and r.ade l a part hereof, and must be received within the time periods specified l .
in paragraph I.1. of this Article YIll.
j (b) The Purchaser will ccepl ete a Standard Re nittance Advice, as set forth in Appendix G, for each assigned thr ce month period parent, and mail it postmarked no later than the last business day of the month following each assigned three month period to " Depart: tent of Energy, Of fice of Controller, Cash Kanagement Division, Box 500, Room D-208, Ge rman:own, Ma ryl and 20874 .
D
E .. , ,
4; Any fees r:t paid on a timely basis or under?dri because of mis-calculatica will bel subJec$ $c in$efest $s specifIed in paragrjph (
of this At:icle 511. .
C. Interest en Late rees !
- 1. 00E will n.otify the Purchaser of amounts due only den unpaid or .
- underpaid by the dates specified in paragraph I above. Interest will be levied according to the fol'.: wing forsu14:
Nmber of Quarterly Months Late Including Interest = Unpaid talance Due .
1 T'reasury I Month Of Payment (Fraction To DOE .ror Rate Plus Rounded Up te hhcie w:r.&. s Assigne: Three Month Ptried Six Percent 12
( 6'.)
- 2. Interest is payable at any time prior to the due date for the subsequent assigned three month period fee payment.' Honpayment by the end of the subsequent Purchaser assigned three senti period'will result in compounding of interest due.
shall complete a Stedard Remittance Advice for interest payments.
- 3. Fo11cwir>g the assessment of "a late fee by DOE, payments will be applied against accrved interest first and the principal thereafter.
D. Effect of Paymett_,
Upon ;< pent of all applicable fees, interest and penalties en unpaid er underpaid amour:s, the Purchaser shall have no further financial obliga:ien to DOE for the dis:csal of the accepted SHF and/or MLV.
22 4
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- - - - - - - - _ _ ~ _ _ . _ _ _ _ _ _ _ _ . _ , _ _
- s. - * . . , . -
.r . ,
. 1 E. Audi__ t .
- 1. The DOE or its representative shall have the right to perform any audits or inspections necessary t'o detemine whether Purchaser is paying the I correct amount under t!.e fee schedule and interest provisions set forth in paragraphs -
J l
A, B and C above. j
- 2. Nothing 1n this contract shall be desced to preclude ao abit I I
by the General Accounting Office of any transaction under this contract.
l
- 3. The Purchaser shall furnish DOE.with such records, reports and
- data as cay be necessary for the determination of cuantities deliverec hereuncer and for final settienent of amounts due under this centract and shall retain and make available to DCE and its authorized representative for examination at all reascnable tir'es such 7ecords, reports and data for a period of three (31 years from the corpletion of delivery of all r.iterial under this centract.
AF.TICLE IX - DELAYS ,
A. Unavoidable Delays by Purchaser or DOE Heither the Goverreent nor the Purchaser shall be liable under this contract for darages caused by failure to perform its obligations hereunder, if such failure arises out of causes beyond the control and without the fault or In the event circumstar.ces beyond negligence of the party failing to perform.
the reasonable control of the Purchaser or 00E -- such as acts of God, or of t'e public er.ery, icts of Goverreent in eithdr its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight er.bargoes and unusus11y severe weatter.-- cause celay in scheduled celivery, acceptarce or transport of SHF and/or HLV, the party experiencing the delay will Etify the other party as soon as possible af ter such delay is ascertained and the parties vill resdjust their schedules, as appropriate, to acccmodate such celay.
. 23 O
- 3. Avoidable Delays by Purchaser or DOE
- In the event of any' delay in the delivery,' acceptance or transport of SHF and/or Hl.W to'or by DOE caused by circumstances within the reasonable control of either the Purchaser or DOE or their respective contractors or suppliers, the charges and schedules specified by this contract will be equitably adjusted to reflect any estimated additional costs incurred by the party not responsible ,
i for or contributing to the delay.
. ARTICLE I - SUSPEMSION A. In addition to any other right's D01 may have hereunder DOE reserves !
the right, at no cost to the Goverment, to suspend this contract or any portion thereof upon written notice to the Purchaser within ninety (90) days of the Purchaser's failure to perform its obligations hereunder, and the Purchaser's failure to take corrective action within thirty ('30) days after written notice of such failure to perfom as provided above, unless such failure shall arise frcru causes beyond the control and without the fault or negligence of the Purchaser, its contractors or agents. However, the Purchaser's obligation to pay fees required hereunder shall continue unaffected by any suspension. Any such suspension shall be rescinded if and when 00E detemines that Purchaser has cenpl eted corrective action.
- 5. .The DOE reserves the right to suspend any scheduled deliveries in the eveIit that a national emergency requires that priority be given to Goverreent progrns to the exclusion of the work under this contract. In the event of such a suspension by the Goverrnent, the DOE shall refund that po rtion 24 9
s l, 's of reynents representing services not delivered as (etemined by the Contracting Officer te be an equitable adjusEert. Any disagreement erfiing from the refunc payswnt, if 'any, shall be resolved as provi(ed in the clause of this contract, I entitled %ISPLTTES.*
AATICLE XI - REMEDIES Wothing in this contract shall be construed to preclude either party fror.
asserting its richts and renedies under the contract or at law.
Ar.TICLE XII - FOTICES All notices and communications beheen the parties under this contract (except notices published in the Federal Register) shall be in writing end shall be sent to the followieg addressees:
"* U.S. Deeart=ent of Energy To DOE: Procurement and Assistance .%nugement Directorate Of fice of Procurement Operations Vashington, D.C. 20585 Attestion:
Ne's Hanpshire Yankee Division of PSNM ,
To the Purchaser: 1671 kbreester Road Praming'.w., !% 01701 Attn: Panager of Fuel Procurement ard Seabrook S'aeion l P.O. Box 300 Seabroc>k, Peckingham County
?bs Haroshire 03874 Attn: ? resident Mcwever, the parties t'ay change the addresses or adcressees for such notices or cenrmnications withcut forral modification to this contract; previded,
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however, that notice of such changes shall be 'jiven by recistered rail.
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. ,s . .
ARTICLE IIII - REPRESENTATION CONCERNING NUCt. EAR HAZARDS INDEMNITY A. DOE represents that it will include .in its contract (s) for the operation of any DOE facility an indemnity agreenent based upon section 170(d) of the Atomic Enerty ;
Act of 1954, as amended, a copy of dich agreement shall be furnisne.1 to the Purchaser; that under said agrement, DOE shall have agreed to indemnify the
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contractor and other persons indenified against claims for public liability (as defined in said Act) arising out of or in connection with contractual activi-
?
ties; that the indenity shall apply to covered nuclear incidents which (1) take place at a contract location; or (2) arise out of or in the course of transporta-tion of source, special nuclear or by-product saterial to or from a contract location. The obligatic'n of DOE to indemnify shall be subject to the conditions stated in the indemnity agreement.
H
. 8. The provisions of this Article IIII shall continue beyond the term of this contract.
ARTICLE IIY . ASSIGNMENT The rights and duties of the Purchaser may be assignable dth transfer of title te the SW and/or HLW involved; provided, however, that notice of any such ;
transfer shall be r.ade to DOE within ninety (90) days of transfer.
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- f. .
AXENDMENT_5_
ARTICLE IV The provisions of this contract have been developed in' the light of
^
Accordingly ,
uncertainties necessarily attendant upon long-ters contracts.
at the request of either DOE or Purchaser, the parties will negotiate and, to the extent mutually agreed, amend this contract as the parties may dee:.
to be necessary or proper to reflect their respective interests; provided, however, that any such amendment shall be consistent with the DOE final rule 18 , 1983 entitled, " Standard ' Contract published in the Federal . Register; on April for Disposal of SW and/or MLW", as the same may be amended from time to time.
ARTICLE IVI - DISPUTES A. Except as otherwise provided in this cor.:ract, any dispute concerniag a question of fact arising under this contract which is not disposed of by agree-ment shall be decided by the Contracting Of ficer, who shall reduce his cecis The is .Titir.; ar.d r.:(1 er ctherwise'ivrt.ish a copy thereof to the Purchaser.
decision of the Contracting Of ficer shall be final and conclusive unless wit ninety (90) days from the date of receipt of such copy, the Purchaser ma othervist furnishes to the Contracting Officer a written appeal addressed t DOE leard of Contract Appetis (Board). The decision of the Board shall be final and conclusive unless deter,nined by a court of coepetant jurisdiction to h been fraudulent, or capricious, or arbitrary, or so grossly erroneous as n In connection with to teply bad faith or not supported by substantial evidence.
any appeti proceeding under this clause, the Purchaser shall pr i
with the performance of the contract and in acc:rdance with the Contract ng Of ficer's decision.
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- 3. For Purchaser clains of e: ore than 350,000, the Purchaser shall
- subhit with the claim a certification that the claim is made in good faith; the' supporting data are accurate
- and complete to the^ best of the Purchaser's knowledge and belief; and the amount requested accurately
- reflects the contract adjustrent for which the Purchaser believes the Goverreent is liable. The certification shall be executed by the Purchaser if an individual. VFen the Purchaser is not an individual, the certifi-cation shall be executed by a senior corvany official in charge at the Purchaser's plant or location involved, or by an officer or general partner of the Purchaser having overall responsibility for the conduc't of the Purebaser's affairs.
C. Fcr Purchaser claims of $50,000 or less., "the Contracting Officer must render a de cision witbin sixty (60) deys. Fcr Purchaser clains in excess of
$E0,000, the Contracting Officer must decide the clain within six'ty (60) days or
- notify the Purebaser of the date when the decision will be made.
D. This " Disputes
- clause does not preclude consideration of law questions in connection with decisions provided for in paragraph A above; providea, however, that nothing in this contract shall be cor,strued as r.aling final the decision of any administrative of ficial, representative, or board on a question of law.
ARTICLE XVII . OFFICI ALS NOT 'TO BENEFIT Wo r. ember of or delegate to Congress or resident ccanissioner shall be adeitted to any share or part of this contract, or to any benefit that nay arise theref rcn, bet this provision shall not be construed to extend to this contract if r.ade with a corporation for its general benefit.
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_________m_ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . _ _ _ _ . . . _ _ _ _ . _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ . _ _ _ . ^ . . _
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l ARTICLE XVIII - COVERAMT MA1HST CONT 1WGENT FEES i l l
The Purchaser warrants that oc person or selling agency Ns been -
{
ernployed or retained to solicit 'or secure this contract upon an agreer.ent t I
i or understanding for a cortnission, percentage, brokerage, or contingent
}
j fee, excepting bona fide employees or bona fide established commercial or selling agencies r.aintained hy.the Purchaser for the purpose of securing business. For breach or violation of this warrank, the Government shall bave the right to annul this contract witEout liability or in its discretion
- to increase the contract price or consid'e.ation, or otherwise recover, the full arount of such cemission, brokerage, or contingent fee.
ARTICLE XIX - EXAt'! HAT 10t: 0F RECD 45 ,
The Purchaser agrees that the Comptroller General of the United States or any of his duly autrorized representa,t,1ves shall have access to and the right to exanine any directly pertinent books, documents, papers and records of the Purchaser involving transactions related to this centract until the expiration of three years after final payoent under this contract.
ARTICLE XX - ?EP>ilT5 .
- The Geverreent and the Purchaser shall procure all r+ce'ssary pemits or licenses (including any special nuclear material licenses) and cocply with all applicable laws and replations of the United States, States and 1
municipalities-necessary to execute their respective responsibilities and obligations under this contract.
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i MTICLE XXI - RICHTS Ill TECHNICAL DATA .
A. Definitions. '
- 1. ' Technical data" bee.ns recorded information regardless of form or characteristic, of a specific or technical nature. It ruy, for example, docueent research, experimental, developmental, or demonstration, or engineering work -or-be-usable or used to define a design or process, or to pbcure, produce, support, naintair .or operate caterial. The data r.ay be graphic or pictorial delineations in redia such as drawings or photographs, text in specifications or related perfomance or design-type documents or computer software (including cocputer programs, cor-puter software data bases, and computer software documen Examples cf technical data include research ane engineering data, engineering drawings and associated lists, specifications, standards, process sheets, canuals, Technical tecEnlcal reports, catalog item identification, and related information.
data as used herein do not include financial reports, cost analyses, and other .
inremation incidental to contract administration.
- 2.
- proprietary data" means technical data which erbody trade secrets developed at private t1 pense, such as design procedures or technicUts, checiCal .
cccposition of raterials, or r.anuf acturing esethods, processes, or treatr.4nts, including rdner redifications thereof, provided that such data: (
(a) Are not generally known er available fron other scure,es without etligation concerning their confidentiality;
-1b) Have not been rade available by the owner to others without
[
obligation concerning its confidentiality; and l l
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(c) Are not already available to the Gove.v.ent without obligation concerning their confidentiality. ,
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- 3. " Contract data" means technical data first produced in the performance of the contract, technical data which are specified to be delivered under the contract, or technical data actually delivered in connection with the contract.
- 4. " Unlimited rights' means rights to use, duplicate, or disclose technical data, in whole or in part', in any manner an: for any purpose ,
j whatsoever, and to permit others te do so.'
B. Allocation of rights.
- 1. The Goverment shall have:
(a). Unlimited rights in contract data except as otherwise i .
provided below with respect to proprietary data prepe ly marked as authorized by this clause; (b) The right to rer:ove, cancel, correct or ignore any marting I
not authorized by the terms of this contract on any technical data furnished hereunder, if in response to a written inquiry by DOE concerning the proprietary nature of the markings, the Purchaser fails to respe d thereto within 60 days I
or fails to substantiate the proprietary nature of t.'.e markings. Irt either case, CCE will notify the Purchaser of the action taken; (c) No rights under this ' contract in any technical data which are not contract data, j 31 O
e
r _ _ _ _ _ _
r .
1
{
- 2. Subject to the foregoing provisions of this rights in technical data clause, the Purchaser shall have the right to mark proprietary data it furnishes under the contract with the following legend,and no other, the terms of dich shall be binding on'the Goverreent:
LIMITED RIGHTS LIGEMD This ' proprietary data,* furnished under ' Contract No. ' with the U. 5. Department of Energy say be duplicated and used by the Government with the express limitations that the ' proprietary data' may not be disclosed outside the Goverreent or be used for purposes of manufacture witneut, prior permiss' ion of the Purchaser, except that further disclosure or use say be r.ade solely for the following purposes:
(a) This ' proprietary data" say be disclosed for evaluation purposes under the restriction that the ' proprietary data' be retained in confidence 4 ,
and not be further disclosed; (b) ,This ' proprietary data" say be disclosed to contractors participating in the Goverreent's program of which this contract is a part, for information or use in connection with the work pe'rformed under their contracts and under the restriction that the " proprietary data" be retained in confidencc and not be further disclosed; or (c) This ' proprietary data' say be used by the Goverreent or others on its behalf for emergency work under the restriction that the " proprietary data' be retained in confidence and not be further disclosed. This legend shall be rarked on any reproduction of this data in whole or in part.
E
- 3. In the event that proprietary data of a third party, with respect to which the Purchaser is Jubjec1: to restrictions on use or disclosure, is furnished with the Lietited Rights Legend above, Purchaser sh'all secure the agreement of such kird party to 'the rights of the Governnent as set forth in the Limited, Rights Legend. DOE shall upon request furnish the nares of those contractors.to which proprietary data has been disc 1.osed.
ARTICLE XXII - ENTIRE C0h' TRACT .
A. This contract, which consists of Articles I through XXII and Appendices A thrcugh G, annexec hereto and rade a part herecf, contains the entire agreement between the parties with' respect to the subject ratter hereof. Ary representation, promise, or condition not incorporated in this contract shall not be binding on either party. No course of dealing or usage cf trade or course of perfomance shall be relevant to explain or supplecent any provision centained in this contract.
B. Nothing in this contract is intended to affect in any way the contractual obligation of any other persons with whom the Purchaser ray have contracted with respect to assuning sece or all disposal costs or to accept title to 5:7 and/or MLW.
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> l The following utilities are owners of the nuclear i C.
power reactor or other facilities identified in Appendix A to this contract, as tenants in common with undivided ownership interests in the percentage shares set forth opposite their respective names, as follows:
Utility Ownership Share Public Service Company of New Hampshire 35.56942%
The United Illuminating Company 17.50000 Massachusetts Municipal Wholesale
-Electric Company 11.59340 New England Power Conpany 9.95766 Central Maine Power Company 6.04178 The Connecticut Light and Power Company 4.05985 Canal Electric Company 3.52317 Montaup Electric Company 2.89989 Bangor Hydro-Electric Company 2.17391 New Hampshire Electric Cooperative, Inc. 2.17391 Central Vermont Public Service Corporation 1.59096 Maine Public Service Company 1.46056 Fitchburg Gas and Electric Light Company 0.86519 Vermont Electric Generation and Transmission Cooperative, Inc. 0.41259 Taunton Municipal Lighting Plant 0.10034 Hudson Light and Power Department 0.07737 100.00000%
Performance of this Contract shall be for the account of said owners, and all property and rights of said owners acquired by Purchaser on their behalf under this Contract shall vest in such utilities severally in the aforesaid respective percentage shares; and all obligations of the Purchaser under this Contract, including any charges
l:' -
hereunder, shall be several (and not joint or j o. int and several). obligations of such utilities in the aforesaid respective percentage shares.
Each of the aforesaid utilities represents that the designated Purchaser, New Hampshire Yankee Division of Public Service Company of New Hampshire, has the full authority and responsibility for the giving and receiving of notices hereunder, the receiving and payment of invoices, the making of any elections of the Purchaser, and the exercise of. all other rights conferred on the Purchaser in this contract.
D. Appendices A. Nuclear Power Reactor (s),;or Other Facilities Covered B. Discharge Information (Ten-Year; Annual)
C. Delivery Commitment Schedule D. Final Delivery Schedule E. General Specifications F. Detailed Description of Purchaser's Fuel G. Standard Remittance Advice 1
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I o .
IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and year first above written.
UNITED STATES OF AMERICA UNITED ES DEPAR OF ENERGY By 8 _
/
I Christop YMrN Contracting Officer i UITNESSES PUBLIC SERVICE COMPANY OF NEW HAMPS 3RE THE UNITED ILLUMINATING COMPANY CENTRAL MAINE POWER COMPANY FITCHBURC CAS AND ELECTRIC LIGHT COMPANY MONTAUP ELECTRIC COMPANY NEW ENGLAND POWER COMPANY
/ CENTRAL VERMONT PUBLIC SERVICE
)- 3 CORPORATION d /'l DL d' CANAL ELECTRIC COMPANY
' 7Nahe7 THE CONNECTICUT LIGHT AND POWER COMPANY P.O. box 300 NEW HAMPSHIRE ELECTRIC COOPERATIVE, INC.
Seabrook, NH 03874 TOWN OF HUDSON, MASSACHUSETTS LIGHT AND POWER DEPARTMENT VERMONT ELECTRIC COOPERATIVE, INC.
MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY
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/ /M. -- MAINE PUBLIC SERVICE COMPANY BANGOR HYDRO-ELECTRIC COMPANY
{ Nar.e)
P.O. Box 300 TAUNTON MUNICIPAL LIGHTING PLANT Seabrook, NH 03874 _
COMMISSION (Address) *i Sy NEW HAMPSHIRE YANKEE DIVISION OF PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE, A ent By [
E. A. Brown, President I, R. A. Winslow, certify that I am the Secretary of Public Service Company of New Hampshire; that New Hampshire Yankee Division of Public Service Company of New Hampshire (" Managing Agent") has been duly authorized by the utilities comprising Purchaser in the foregoing Contract to act as their agent in executing and perf orming said Contract; that E. A. Brown who signed this document on behalf of the Managing Agent was then President thereof; and that said document was duly signed for and on behalf of said Managing Agent by outhority of its governing body and is within the scope of its corporate powers.
IN WITNESS WHEREOF, I have hereunto af fixed Iny hand this l day of L f3 , 1986.
(Corporate Seal) '[N 44 m (Signature)
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APPEND!I A WCLEAR P0kIR REACTOR (5) OR T 0,HE),t FACILITIES C'UVERio Purchtler, _New Hampshire Yankee Division of Public Service of New Hampshire Contract L,ber/Cate
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/
Reactor / Facility Earne Seabrook Unit 1 .
Location:
Street _
Po sox 300 City seabrook County / State Rockingham County / New Racpshire 03874 Zip Code _
Capacity (M'mT) - Gross 1150 Reactor Type:
BWR O m [3 Other (Identify)
A k' westinghouse Pk'R located near Seabrook, New Facility Description Emmpshire october 31, 1986 Date of Cocnenceeent of Operation (stiwtixar, estimated) i NRC License #: __
I 1
By Purchaser:
Su , o a n - E , i: ll6
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NSignature
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Iitle
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Date f
' ~ - - -
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- APPENDII B ,
TEM YEAR DISCHARGE FORECAST To be used for DOE pinnning purposes only and does not represent a firs c:rraitaent by Purchaser. .
Purchaser
- _/ __
Contract Neber/Date
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Reactor / Facility Name Location: _
Street City County / State
/ _
Iip Code Type: BWR O s 4 PWR O Other (identify) 7 8 9 10 4 5 6 1 2 3 i 10 yr Discharge date - so/yr .
Total (or ref ueling shut down / .'
l date) -
l Metric tons _
initial _
- discharged --
Number of assemblies discharged (per cycle)
By Purchaser:
- ' Dat e
' ~
Tide ,
Signature I I
r l 1
APPENDIX 8
~ lEnclosure 1)
ACTUA!. DISCRARGES Purchaser Contract Number /Date /
Reactor / Facility Name Location:
Street ,
City .
County /St ate / .
l Zip Code *
. Ty pe : )
Other (Identify)
Refueling Shutdoe Date Metric Tons Urantz (Initial / Discharged); / -
Initial Di scna rged Nmber of Asser. bites Discharged:
Any false, fictitious or fraudulent statement may be punisha:1e by fine or
<mprisorcent (U.S. Code, Title 18, Section 1001). ,
l
$y Purchaser:
51grature title Date l .
.. - J
. APPENDIX C DEL $ERYCOMMITNEKTSCHEDULE' This delivery comit.T.ent schedule shall be submitted by Purchaser to DOE as specified in Article Y.B'. of this contract.
Purchaser Contract Number /Date -
/
Reactor / Facility Name -
Location: .
4 3
City County / State / I Zip Code Type Cask Required:
Shipping Let Amber ^I Prop'esed (Assigned by DOE) Shipping Mode: Truck O Proposed Delivery Date Rail O DOE Assig.ned Delivery Barge C Ccmitment Date
' ~ ~ ~ ' ~ ~
Rsnge of Discharge Date(s) (Earit ast / / To / /
V to Latest) Mo Ta7 Tr No Yr Metric Tens Uranium: (Initial)
(Di scharged)
Neber of Assemblies:
WR _.
NR .
Other
7___,....
APPENDIX C
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Unless otherwise agreed to in writing by 00E, the Purchaser shall furnish herewith to DOE suitable proof of cviership of the SNF and/or HLW to be delivered hereunder. The Purchaser shall notify DOE in writing at the earliest practicable date of any change in said ownership.
Any false, fictit1cus or fraudulent statement may be punishable by fine or insprisonment (U.S. Code, Title 18, Section 1001).
- By Purchaser: -
Signature Title Cate Approved by DOE:
Tecan) cal Representative Title Cate Contracting Of ficer Gate .
i N
9 APPENDIX O_ .-
FIELDELIVERYSCHEDULE .
(To be* submitted to DOE by Purchaser for each designated Purchaser Delivery site not later than twelve (12) months prior to estimated date of first delivery.)
Purchaser;
/
Contract Number /Cate
. Reactor / Facility Name
.ko.c a.;i on : , ,
St reet City -
County / State /
Zip Code
- Assembilies per cask Type (s) cask (s) required: .
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Shipping lot Numeer Shipping Mode: Truck (usigned by 00E) '
Rail
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Barge (Initial)
Metric Tons ijrainum:
(Discharged)
/ /
/ Ny~ / T To Range of Di scharge ' Day '
T N fr Date(s) (Earliest (From approved ccmmit:nent schedule) to Latest)
Nu:cer of Assemblies: .
EWR FWR Other Purchaser's Delivery Fi rst / / Last ._ / / ,_
, ho Tay Tr te by N Estimate e
m_-__________ _ _ _ _ _ _ _ _ _ _ _
3 APPENDIX D .
Unless otherwise agreed to in writing by 00E, the Purchaser shall furnish herewith to DOE suitable proof of ownership of the SNF and/or HL'd to be '
delivered hereunder. The Purchaser shall notify 00E in writing at the earlies practicable date of any change in said ownership.
To confirm acceptability of delivery date(s):
Purchaser Contact Title .
Phone DOE Contact Title Phone Any f alse, fictitious or fraudulent statement may be punisnable by fine or imprisonment (U.S. Code, Title 18, Section 1001).
By Purchaser: ._
'i Signature Title . Cate i Approved by DOE:
Tecnnical Representative Iltle Date Dat e Contracting Officer 09 h - - _ _ - _ _ _ _ __ _ _ _ _ _____
. a APPENDIXJE
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GENERAL SPECIFICATIONS A. F'.e1 Category Identification. ,
- 1. Categories--Purchaser shall use reasonable efforts, utilizing technology equivalent to and consistent with the commercial practice, to properly cl assify Scent Nuclear Fuel (SMF) prior to delivery to DOE, as fo11ews:
- a. ' Standard Fuel" means ShF that meets all the General Specifications therefor set forth in paragraph B:below.
- b. ' Nonstandard Fuel" means SNF that does not meet ont or more of the General Specifications set forth in subparagraphs 1 through 5 of paragraph 5 below, and which is classified as Nonstandard Fuel Classes MS-1 through KS-5, pursuant to paragraph B below.
- c. ' Failed Fuel' means SNF that meets the specifications set forth in subparagraphs 1 through 3 of paragrapn B belc$, and which is classified as Failed Fuel Class F-1 through F-3 pursuant to suoparagrapn 6 of paragraph B below. i
- d. Fuel may have ' Failed Fuei" and/or several " Nonstandard Fuel" classifications .
B. Fuel Description and Subclassification--General Specifications.
- 1. Maximum Heminal physical Di$ensions. .
boiling Water Pressur12ec wacer Re act or,(BWR) Reactor (PWR)
Overall Length 14 feet,11 inches 14 feet,10 inches Active Fuel Length 12 feet, 6 inches 12 feet, 0 inches Cross Section* 6 inches x 6 9 inches x 9 irches inches
- The cross section of the fuel asser.bly shall not include the channel.
MO,TI: Fuel that does not meet these specifications shall be classified as Nonstandard Fuel--Class KS-1.
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APPEND!I E
- 2. Xenfuel Comoonents$ Nonfuel components inclu'd'ing, but not limited to, control spicers. burnable poison rod assemblies, control rod elements, thimble plugs, fission chambers, and primary and seconcary neutron sources, that are contained within tne fuel assembly, or rdR channels that are an integrai part of the fuel assembly, which co not require special handling, may be in:1uded as part of the spent nuclear fuel delivered for disposal pursuant to this contract.
NOTE: Fuel that does not meet these specifications shall be classifie;:
_. .. _. .as Nonstandard Fuel--Cl ass AS-2.
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- 3. Cooling. The minica cooling tire for fuel is fiv's (S) years.
M0iE: Fuel that does not meet this specification shall ba classified as Nonstandard Fuel -Class MS-3, 4 Non-LWR Fuel . Fuel from other than LWR power facilit0es shall be classifiec as Nonstandard Fucl--Class NS 4 . Such fuei may be unique and require special handlinp storage, and disposal facilities.
- 5. Consolidated Fuel Reds. Fuel which has been disassembled and stored witn tne fuel rocs in a consolidated manner shall be classified as Nonstandard Fuel Class K5-5.
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- 6. Failed Fuel M '
- a. Visua1 ' Inspection; .
Assemblies shall be visually inspected for evidence of structural deformity or damage to cladding or spacers which may require special, handling. Assemblies which [i] are structurally deformed or have damaged cladding to the extent that special handling may be required or [11] for any reason cannot be handled with nor.nai fuel handling equipment shall be classified as Failed Fuel--Class F-1.
- b. Previously Encapsulated Assemblies.
Assemblies encapsulated by Purchaser prfor to classification hereunder shall be classified as Failed Fuel-41 ass F-3. Purchaser shall advise DOE of the reason for the prior encapsulation of assemblies in sufficient detail so snat DOE may plan for appropria:e <
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sbsequent handling.
- c. Regul story Requirements.
Soer.t fuel assemblies shall be packaged and place.1 in casks so snat all applicaole regulatory requirements are met.
4
APPENDIX E ,
C. Semary of Fuel Classific'ations.
1; Standard Fuel:
- a. Class 5-1: PWR
- b. Class 5-2: BWR
- 2. ,
Nonstandard Fuel: .
- a. Class WS-1: Physical Dimentions
. b. Class MS-2: Non Fuel Components
. . . . . . - - - .----c.
Class NS-3: Short Cooled *
- d. Class MS-4: Non-LWR
. e. Cl ass MS-5: ' Consolidated Fuel Rods.
- 3. Failed Fuel:
- a. Class F11: Visual Failure or damage
- b. Class F-2: Radioactive " Leakage"
- c. Class F-3: Encapsul ated D. High-level Radioactive Vaste.
The DOE shall accept high-level radioactive waste. Detailed acceptance
- criteria and general specifications for such waste will be issued by the DOE no later than the date on wfiich DOE submits its license appitcation to the Nuclear Regulatory Comission for the first disposal facility. ;
esam e e, . * * - e M
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~ APPENDIX F DETAILED DESCRIPTION OF PURCHASER'S FUEL This information shall be provided by Purchaser for' each distinct fuel type within a Shipping Lot no.t later than sixty (60) days prior to the schedul e transportation date.
Purchaser Contract Number /Date /
Reactor / Facility Kame I. Drawings included in generic dossier:
- 1. Fuel As s embly Dossfer Number: -
DWG#
DOE Shipping Let #: __
- Assemblies Described: BWR
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q PWR
- 2. Upper a lower and fittings ,
DWGd Other. i i
II. DESIGN KATERIAL DESCRIPTIONS l
Fuel Element A55bly Descric'.f on
]
- 1. El ement typ, . ~1. Hanber of Elements ,
(rod, pl ate, etc.)
- 2. Overall dimensions
- 2. Total length (in.) l' (i"*)
. Tengtn cross section
- 3. Active length -
(in.)
- 3. Overall weight )
4 Cladding caterial (Ir su .s . , e tc . ) -
111. Describe any distortions, cladding damage or other denage to the spent fuel, or nonfuel components within this Shipping Let =nica will
- retuire special handling procedures. (Attach additional pages if ne ed ed .) .
- s
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APPENDIX F -
IV. Assembly Number ,
Shipping Lot # ,
IRRADIATION NISTORY
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CYCLE NUMBER 1 2 3 4 5
- 1. Startup data (so/ day /yr)
- 2. Shutdown date (mo/ day /yr)
- 3. Cwnulative fuel exposure
. (mwd /mtu) 4 Avg. reactor power (ewth)
- 5. Total heat output / assembly in watts, using an approved calcu-
. lational method: as of
- Date 4
Any f alse, fictitious or fraudulent statement may be punishable by fine or imprisonment (U.S. Code, Title 18, Section 1001).
By Purchaser: ,
Signature 11tle Date O
em 4
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. APPENDIX G Standard Remittance of Advice (RA) for Par.ent of Fees Assigned Three-Month Period CoverW:
from to
- 1. A. Purchaser (Utility name and address)
B. Contract Nuder
.a II. Pacerrt for Spent Nuclear Fuel.' $
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A. F,inancial Obligation as of April 7,1983 l S. Financial Obligation as cf Dete of First/ Single Payment C. Data of First/ Single Payment D. Unpaid Balance to Date ..
E. Date of This Payment F. Ten Year Treasury Note Rate III. Payment for M/XhH Fee $
A. Total Nuclear XW Generated During Assigned Three Month Period Covered
. B. Date of This Payment
- C. M/Kkw Fee Schedule Rate 1
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!Y. Underpaymnet,(as notified by DOE) ,
A. Date of Notification -
- 8. DOE Invoice Number C. Interest Paid i
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V. Late Payments (as notified by DOE) !
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~~~-~~~~A. Date of Motificatio'n
_~ _,_, ' , [ [ .]8 DOE Invoice Maeber
-" "'-~~~~~
~ C . Interest Paid .
VI. . Other Credits Claimed (Explain 5 ( )
. VII. Total Remittance , $ _
Prepared by:
Title:
. F'ane h ber:
, Date: .
Any f alse, fictitious or fraudulent statement may be punishable by fine or imprisonment (U.S. Code, Title 18, Section 1001.)
~~
Sy Purchaser:
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Signature Title Date FOR DOE USE ONLY BELOW in15 L1hE
- 1. Deposit to A: count 89-5227 _
- 2. Receipt of Fapent verification j
- a. Date Papent Received __
i l b. Verification Perforced by -
)
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ew-----,g33_cerm-=wn,.--
4 Posted to Cumulative Mi.tter Ledger:
- 3. ,
- a. Data Posted
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- b. Posted by 1
- 4. Late Payments:
- a. Calculation of late charge (attach schedule) 1
- b. Billing data *
- 5. Af . processing RA furnish copy to OCRWM
.-.ter -
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INST 20CTION5 FOR COMPLE MG_ DOE REMITTANCE ADVfCE Upon ccepletion, this f:nn must be mailed on the last workday of the month follcwing each assigned three-month period. , .
SECTION I Name & Address (self explanatory)
Contract Nu:-ber will be the identification nunter assigned by DOE upon execution.
SECTION II:
Based upon per .arently discharged inventory of spent fuel and HLW amassed prior to April 7,1983, and that portion of the in-core fuel burned through April 6,1983. Under either payment option 1 or 2, interest will accrue and be compounded at 13-*eet Treasury bill rates until the first/ single pay- ,
. a' ment is made. If the 10 year option is selected, purchaser's financial l obligation will be paid in level payrent of principal and interest over the first payment. Pay ents will be made in quarterly installments con-currectly with the normal three :nonth assigned period. If option 2 is
.. . . selected, purchasar will liquidate its total financial oblig,ation, c:nsist- !
.ing of the fee plus accmed interest, in the form of a single pay ent. If option 3 is selected, no interest will accrue and lines A and E only must
' be filled out. This section of the Remittance Advice should be completed for each payment under the 10 year option and only once with either single payEnt op$ ion. (See Annex B, to be completed only once.) l
_ _ . . . _ . _ . a m. Self explanatory
- b. Fee obligati:n plus accrued interes
.c. Self explanatory
- d. Sel f expl a na ory
- f. Ten year Treasury X:*e rate in effect at first/ single payment
! Amount paid
SECTION III: ,
Based upon electricity generated on or after April 7,1983, a schecale should be attached specifying the gross power generated by each plant during the assigned three-me. nth period as =easured at the output ter-
, ainals of the turbine generator. (.See Annex A, to be compl eted with
,__ each submission of the remittance advice.)
_e.__ Total of power generation frcm attached schedules
- b. Self expl anatory
- c. Fee schedule rate in ef fect at time of pa'yment SECTIONS IV & V: .
(Same instructions as above) 00E will invoice purchasers when underpayment or late payments occur, reference a particular payment, and state.the reason for the invoice. '
i A. The date the purchaser received-00E invoice '
B. DOE's invoice #
C. Interest paid
$. Consists of interest if late payment or fees plus interest if under payment SECTION VI: -
Explain on an attached sheet of. paper, if necessary, why 00E has been over-
' paid and the proposed disposition of the payment, e.g., apply credit against this payment or sand refund.
$ If applied against this payment, this number is negative. If refund desirb, leave blank and pay gr:ss amount due from Sections 11 through V.
SECTI0f VII:
' The sum of Sections II through VI.
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- A*pENDIX 'C" (Contievedl
- Instruction Guide for Remittance of INelear Waste Disposal Fees to Deoartment of Energy Yin Wire Transfer i
Paveents made to the Department of Energy (00E) for tJuclear Waste Disposal rees w!11 be ef fected by tha Purchase:'s
.ccema cial bank via the Federal Reserve Ccmmunlcations Systen
- If the (also kncwn as Fe -ire) to the Ceca:tment of Treasury.
Pv; chaser's commercial bank is not a Federal Reserve member, bank then the' Purchase:'s bank will use a co::espondent mer:e:
to eff ect the transf er of funds.
Pur:hsser most p:: vide specific info:Satien to its bank so that Failure to co;;ectly the transf er of funds can 'tske place.
crevide the inf o: etien could rescit in delay crediting of the .
to late remittance to DDE and could subject the purchase:
cha:STs.
s vite t:Snsft: Of funds ressage with descriptions of specific date elements is provided in Enclosure 1 Enclosure B centsins instructions and a saeple form of a t:tnsf er of funds that she*5 t*e soecific inf::mation to be supplied by the Purchaser when
- enuesting its c:mmercisi hank to initiate a transfer or funds. f 4
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,.. .__....._._ . , ,, , . _ _,,_7.__.
r nelosure C shows a transfer of funds message, fo:n that may be chotocoef sp and used 'ench time a transfer ef' funds. aust be made. Constant info,rmation has been proprinted on the form.
Only that information applicable to that particular ponthly remittance (i.e., ancunt, date, ccmpany nama) must be fillec in
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erior to submitting the fo:e to your bank. ,
If additional'information is recuired, contact DOE .
representatives Herk Leco er Joe Startari en (301) 353- A ?9 9 or'
'??-5957). .
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i Inclosure A l
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. Guide for runds Transfer ,
Nessages to Traasury
. The following instructions provide specific information whl:n is recuired Fn thats funds (wire) transfer message can be transmitted to the Departme6t of the Treasury. The funds transfer ves sage forms t is shown in Exhibit' 1. A narrative de s cr': tion of each item on the funds transfer message f:ll:vs:
Line 1 ,
Item 1 Sriority Code - The priority cede will be proviced by the sending bank. (Note:
I Sone rederal Reserve dis trict bsek= *sy not reculte this item.)
Lime 7 I
Itan ? - Treasurv nenartment have The nine-digit .
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identifier "62103000A" is the routing symbol of the Treasury. This item is g constant and is re:uired fer all ,
funds trensfer hessages sent to Treasury.
Item ? - Tyne Cefe - The type code,10, icentifies funcs I
transfer nessa;es. This ites is a constant and is recuire l
for all funds transfer messages sent te Treasury.
1 e a usu___________. ._ . _ _ _ _ _ _ I
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Line 3 ,
item A - Seadino Punk Code - This nine-d'ig'it 5 ?entifie: will .
be provided by the sending, bank. -
7 tem * - Class - The class field may be used at the option of the sending bank. (Note: Some rederal Reserve Distri:ts
~
orchibit use.,of this class /f f eld.-) .
Item * - Reference Number - The re farence number will be inserted by the sending bank to identify the transaction.
f tem 7 Amnunt The amount must include the dellar sign
. and the accrocriste punctuation including cents digits. .
This item will be provided by the purchaser. )
Line A Item 8 - Sendin: Bank Name - The ' telegraphic abbreviation which certescends to item 4 will be pre.vided by the sending ;
bank.
Line * ,,
Item 9 Treasury Geoartment Name - This item is of criri:a1 importance. It must appear on the funds transfer message in' 1
the precise anner as stated to allow for the autensted
- crecessing and classification of the funds transfer messa;e to treasury for credit to the' Decar* ment of Energv. Thi!
item-ds comorised of a rigidly for etted, nonvariatle saauence of 78 ekstscters es follows- l TRE AS NYC/f f 900090?) 00E NWF .
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- . 3 o o f, , $1,305.500.00 -
,h.021000021 . e . ..s . . . .. e . s , s s *=n -
4 8 CF.ASE HYC._ ,
1;t! AS KYC/(t? 000003) -00E-67 g
s 10 00!* MUCLEAR WASII E '
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Line 4, 7, and 9 .
Psy*ent Ihntificatich - The cayment' iden.tification snevic be furnished by the remitter in the folleving manner: .
Item 10 - The constant "COE NUCWASTE FEE" will be insert ec.
Item 11 - The month and year the fees were incurred (i.e.; l May an) fol[cwedbyaslash (/).
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Item 12 - The comcany mane is incertec following the slash.
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6CLOSURI.5
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- TRN15TER OF FLmD5 P.135AGI 7024 .
(CQ, V LiilD 147k!) .
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. _- ntAs nTc/(esoccee3) 301- wwF DOE NUCLEAR WASTE FEI y - F. AT k 0 / Al C PURCMA5IR s _
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The above exagle is a cogletad transfer of funds message fem dauiling these items (A thru O filled in by the remitting c:c;:any.
DESCRIPTION .
Itts Amount-cust be pnperly punctuated te' include A
cants digits.
Cata - month and year fellewed by a slash (/)
8 dogany'XLEe.
C e
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e 9
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- 3. Nuclear fuel in the reactor core as of midnight of ,
,6/7 April 1983 1
As sembly Initial burnup as,of Identification loading midnight * .
6/7 Apri1~1983 fee
,' ( Kg U)
(MWDT/MTU)
- 1. 1
- 2. .
3.
4.
5.
- 6. .
7,
- 8. '
9.
10.
- 11. _
12.
13.
14.
- 15. -
- 16. -
- 12. ,_
J 13.
- 14. -
- 15. -
16.
17.
- 18. __
19.
20.
21.
22.
23.
- 24. .
25.
C. Tetal fee .
I
- 1 Please provide (as as attachment) a clear reference to the =ethodology used to derive the bursup figures (computer code s , etc. ) and a clear l re f erence to all data used is ,the derivation of those figur e s .
l mo
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^' ,a . . ..- - _ - . -
. l Annex A to Appendix G l STANDARD REMITTANCE OF ADVICE (RA) FOR FAYMENT OF FEES !
This Annex shald be completed to compute the MKWH fee for SW burned on or I after April 7,1983. !
I. Identification l
A. Purchaser: -
- 5. Period Covered .
tast This Next re Dort re co rt . report 1
- 1. date submitted:
- 2. period covered: 5 tart oate:
Finish date:
- 3. length of period covered (days):
C. Unit identification (Only one unit may be covered in each report.)
- 1. Reactor / Facility Name:
- 2. Location:
- 3. Type:
- 4. Capacity:
- 5. Date of Correencement of cperations:
- 6. NRC License No.:
II. Fee Calculation Prior This Period Period
- 1. Gross Thermal Energy produced (MWH)
- 2. Gross Electrical Energy produced (WH)
- 3. Gross Thermal Energy not used to generate electrical output (WH)
- 4. Gross electrical equivalent of thermal .
electricity (MhH)
- 5. Met electrical energy produced (MWH)'
6.- Electricity consumed / lost or site (MW'ri)
- 7. Current fee rate: mill /kkh 5
- 8. Current fee due:
i Prepared by: j Phone number:
Date:
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A-_--m_.__________ _ _ _ _ _ .
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INCLCSL'RE C 1 57tR OF M Lt$ f.I53AGI TO M .
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021030004 10 s _
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' Annex 8 to Appendix G STANDARD REMITTANCE OF ADVICE (RA) FOR PAihENT CF' FEES .9 ., ,
. l This Annex should be completed only for SW burned before midnight between l April 6/7,1983. )
- 1. Identification As Purchaser: !
, , , , . . . . 8. Unit identification (Only one unit may be covered in each repo .) 1 l
I
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- 1. Reactor / Facility Name:
- 2. Location:
. 3. Type: i
- 4. Capacity: -
)
- 5. Date of Cor. encement of Operations:
- 6. NRC License No. :
II. ' Fee Calculation
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A. Discharged nuclear fuel
- 1. burnupi (MWDT/MTU) 0- 5000- 10000 20000 5000 10000 20000 .p
- 2. initial leading (Xgu)-s (with indicated burnup)
- 3. fee rate (3/Kgu) 80. 00 142.00 162.00 1M.00 .
- 4. fee ($)
- 5. total fee (4)
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. i me 1
w ATTACHMENT 8 TO ENCLOSURE 1 or NYN-89045 DOE to NSY Letter dated April 27, 1989 W. !!enson Moore to E. A. Brown e
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9 4 ,7 T, Department of Energy j, g $
Washington, DC 20585 3
0 4 April 27,1989 l
Mr. Edward A. Brown i I
President and Chief Executive Offienr I
(' New Hampshire Yankee Division of Public Service of New Hampshire f P.O. Box 300 seabrook, N.H. 03874
Dear Mr. Brown:
Thank you for your letter of April 21, 1989, requesting two clarifications regarding your contract with the Department of Energy for disposal of spent nuclear fuel.
First, under Article I.18 of the Standa'rd Contract fcr Disposal of Spent Nuclear Fuoi and/or High-level Radioactive Waste, which !
defines spent nuclear fuel, irrg.diated fuel resulting from low power testing would be covered by the disposal contract.
Second, in the event your company does not generate and sell electricity, there would be no financial liability with respect to the 1.0 mill per kilowatt-hour engoing fee specified in Articlu VIII.A.1 of the disposal centract. Moreover, since no basis currently exists 'nder the disposal contract to establish an alternative fee, your company has no present financial obligation to the Nuclear Waste Fur.d for disposal services of i
irradiated fuel resulting f rom low power testing in the event no electricity is generated and sold. While the Department is required by the Nuclear Wasto Policy Act of 1982, as amended (NW PA ) , to recover fully the cos t cf the waste disposal program, the NWPA and existing contract terra do not provide for the allocation of such costs to individual owners beyond the 1.0 mill por kilowatt-hoir f ee for electricity generated and sold, notwithstanding any additional costs they mey impose on the waste management system.
I trust that this response will prc.ide the clarifications requested by the Nuclear Re gulatory Commission. If I can be of further assistance, please do not hesitate to contact me.
S i r.:e r e ly, I
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- w. Henson Moore Depaty scarotary e
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ENCLOSURE 2 TO NYN-89045 4
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I NRC Stsff Comment No. 2:
The language of the Surety does n:t appear to address contingencies other than denial of a full power license, e.g. , vhere the Applicants withdraw their application for a full power license subsequent to operation-in accordance with a low power license or where the Applicants are granted a license for operation at power levels above SI but less than fu'.1 power. The surety, or whatever assurance mechanism. is used, should make clear that funds as required by CLI-88-10 will be available in all cases "in the event that low power operation has occurred and a i
full power license is not granted" CLI-88-07, 28 NRC at 273, CLI-88-10, 28 -j NRC , p. 4.
Response
The provisions of the surety bond were carefully negotiated to meet what the surety and the Applicants' understood to be the plain meaning of CLI-88-10 and to meet the surety's need for a precise delineation of its obligation.
The Applicants submit that the proper interpretation of CLI-88-10 is apparent when it is read in the context in which it was it sued. That context was an extended adjudicatory proceeding on an operating license application in which interveners -
were seeking to obtain a waiver of the financial qualification rule in order to reopen that subject, given the application for a low power testing license and the assertion by interveners that the Com::ission would utlimately determine on the merits that a full power license could sever issue because of inadequacies in the off-site emergency planning for the Project. That was the scenario which became the
' hypothesized circumstances" in CLI-8810 and to accomodate that scenario the' Com:nission in CLI-88-10 elected 'a clear course which. . . allows this complicated litigation over financial protection for low power testing to come to a close." The Commission deternned a dollar amount i:r the cost of " safe decommissioning in the event that [af ter low power testing] a "ull power license is not granted," and required the Applicants to provide assurance that such a dollar amount would be available for that purpose (making explicit reference to "prepaymant, external sinking fund, surety, issuance (sic) or other guarantee" which would constitute- the ,j
" greatest assurance").
1 j Since the Commission also expressly conditioned the issuance of the low power testing license upon resolution of two remaining technical issues, it is clear that the context also involved the ongoing proceeding on the operating license. That aspect of the context involves the current proceeding in which the Co:: mission must ultimately decide whether or not the statutory findings can be made. If the record i supports those findings, then the Dire::or of Nuclear Reactor Regulation vill be authorized to issue the full power lice:se. If the record does not support those ,
findings (and deficiencies cannot be cured), then the decision must be to' deny the license. There is no middle ground. Ihe Commis sion's Memorandum, dated February 3, 1989, which indicated its expectation that the licensing hearings could be completed by September 30, 1989, is consistent with our view that the Co::: mission was contemplating a definitive termination cf the licensing proceeding when it used the words "if a full power license is not granted".
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i Because "is not granted" is an open-ended concept, a non-event, it is not the sort of identifiable event that any commercial sarety requires as the trigger for a
$72 million of surety obligation. Because of the magnitude of the risk undertaken by a surety and the third party ramifications of that exposure, commercial practice dictates that the instrwnent be precisely drawn. It is this drafting approach which resulted in the use of the phrase " denial of a full power license" rcther than the phrase "a full power license is not granted" - phrases of identical impact given the context of CLI-88-10. Since the commission expressly acknowledged that a " surety" would be an acceptable method of providing the required assurance, it would be incongruous to read CLI-88-10 as precluding provisions required in a commercially availabls surety.
Ihe Staff comment suggests two hypothetical circumstances which they would like to envelop in the mantle of CLI-80-10. Neither was expressly stated in CLI-88-10 '
and both, vs submit, are adequately covered by existing powers of the Commission.
The first suggested circumstance - a withdraval by the Applicants of their license application after low power testing - is a highly unrealistic hypothetical. It assumes that the Applicants give up the objective they have been seeking for 17 years, surrender their application and the then existing 5% operating license and abandon a completed and low power tested facility. Clearly, it was not a scenario presented to the Commission in CLI-88-10. Nevertheless, Applicants submit that in such circumstances the Commission still retains full control. Precedent establishes that withdrawal of an application in an adjudicatory proceeding is discretionary with the Commission and it can attach whatever condition it deems appropriate.
Obviously, after low power testing of any facility, the Commiomien would not acquiesce in the withdrawal of the operating license application without having obtained adequate assurance that decommissioning would be safely accomplished. When i you assume that a withdrawal request must be acecepanied by a request to terminate the low power license as well, then the Commission also has the panoply of powers available under 10 CFR 2.107(a) and 50.82.
The second circumstance put forward by the staff - potential interim operation above the $2 power level - is explicitly excluded from CLI-85-10. That order was l specific to SI power. The testing license it describes is carefully limited as to l power level and duration of testing. The decommissioning costs determined by tha order are expressly based upon the radioactive contamination produced by that '
limited testing operation. If interim operation at a higher level were ever proposed, it would require licensing approval by the Comrission to which it :ould attach whatever further conditions as to " pre-operational decommissioning" it chooses.
The Applicants submit that the language of the surety bond meets the requirements of CLI-68-10 and that the hypothetical circumstances suggested by the Staff are outside the scope of that order and, in any event, are adequately covered by the powers of the Commission. j l
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