ML20148A681

Requests Explanation as to Why UCC Is Asked to Add Article 8 to Indemnity Agreement B-14 Re Assessment of Deferred Premiums When It Has No Relevance to the Five Megawatt Thermal Res Reactor Owned by UCC

ML20148A681
Person / Time
Site:	05000054
Issue date:	12/21/1978
From:	Voth M UNION CARBIDE CORP.
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 7812290157
Download: ML20148A681 (1)

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@ C o tt PO R AT L Rf LEARCel LABOH A10fW UNION CARBIDE CORPORATION P.O. BO X 32/, TU XEDO, idW YO R K 10987 TELEPHONEt 914 351-2131 December 21, 1978 l

Mr. Jerome Saltzman, Chief Antitrust & Indemnity Group l Of fice of Nuclear Reactor Regulation '

U. S. Nuclear Regulatory Commission Washington, D. C. 20555

Dear Mr. Saltzman:

Your August 14th letter to Mr. D. B. Holzgraf requested that ,

we sign Amendment No. 11 to Indemnity Agreement No. B-14 between Union Carbide Corporation and the Atomic Energy Commission, dated July 10, 1962. This amendment would add to our agreement an Article VIII which concerns assessed deferred premiums.

We understand that the deferred premiums, as discussed in 10 CFR 14 0.ll(a) (4 ) , only apply to nuclear power reactors having rated capacities of 100,000 electrical kilowatts or more. The subject would therefore have no relevance to the five megawatt thermal research reactor owned by Union Carbide.

Our corporate management is hesitant to sign an amendment which appears to make the corporation liable for deferred premiums. Before taking further action on this matter we request: 1) confirmation of the fact that the matter of deferred premiums does not apply to the Union Carbide Nuclear Reactor and, 2) an explanation of why we are asked to add Article VIII to Indemnity Agreement B-14 when it has no relevance.

Yours very truly, dAtur b Marcus H. Voth Manager $v Nuclear Operations {q'd

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7812290i57 I

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