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72 Stat. 634.

taining options to renew the contract for reasonable periods at prices not to include charges for special facilities already amortized; and (iii) the desirability of reserving in the Commission the right to take title to the special facilities under appropriate circumstances; and

6 (3) include in contracts made under this subsection provisions which limit the obligation of funds to estimated annual deliveries and services and the unamortized balance of such amounts due for special facilities as the parties shall agree is chargeable to the performance of the contract. Any appropriation available at the time of termination or thereafter made available to the Commission for operating expenses shall be available for payment of such costs which may arise from termination as the contract may provide. The term 'special facilities' as used in this subsection means any land and any depreciable buildings, structures, utilities, machinery, equipment, and fixtures necessary for the production or furnishing of such supplies, equipment, materials, or services and not available to the vendors or suppliers for the performance

of the contract." Sec. 8. Section 166 of the Atomic Energy Act of 1954, as amended, Disposal is amended by adding the following proviso at the end thereof“: And of records. provided further, That nothing in this section shall preclude the earlier 42 USC 2206. disposal of contractor and subcontractor records in accordance with records disposal schedules agreed upon between the Commission and the General Accounting Office.”

Approved August 19, 1958.

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Public Law 85-744
85th Congress, H. R. 13455

August 23, 1958

AN ACT

To amend the Atomic Energy Act of 1974, as amended.

Be it enacted by the Senate and Ilouse of Representatives of the

Atomic Energy United States of America in ('ongress assembled, That section 170

Act of 1954, of the Atomic Energy Act of 1954, as amended, is amended by add

amendment. ing at the end thereof the following new subsection:

71 Stat. 576. “k. With respect to any license issued pursuant to section 53, 6:3, 42 USC 2210. 81, 104 a., or 101 c. for the conduct of educational activities to a person Licenses for found by the Commission to be a nonprofit educational institution, the educational Commission shall exempt such licensee from the financial protection activities. requirement of subsection 170 a. With respect to licenses issued bet ween August 30, 1954, and August 1, 1967, for which the Commission grants such exemption:

“11) the Commission shall agree to indemnify and hold harmless the licensee and other persons indemnified, as their interests may appear, from public liability in excess of $250,000 arising from nuclear incidents. The aggregate indemnity for all persons indemnified in connection with each nuclear incident shall not exceed $500,000,000, including the reasonable cost of investigating and settling claims and defending suits for damage;

“(2) such contracts of indemnification shall cover public lia- 72 Stat. 838. bility arising out of or in connection with the licensed activity; and shall include damage to property of persons indemnitied, except property which is located at the site of and used in connection with the activity where the nuclear incident occurs; and

"(3) such contracts of indemnification, when entered into with a licensee having immunity from public liability because it is a State agency, shall provide also that the Commission shall make payments under the contract on account of activities of the licensee in the same manner and to the same extent as the ("ommission would be required to do if the licensee were not such

a State agency. Any licensee may waive an exemption to which it is entitled under this subsection.”

Approved August 23, 1958.

72 Stat. 837.

(142)

85th Congress, S. 4273

August 28, 1958

AN ACT

72 Stat. 1084. To provide for cooperation with the European Atomic Energy Community.

42 USC 2011 note.

program.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may

EURATOM be cited as the "EURATOM Cooperation Act of 1958”.

Cooperation SEC. 2. As used in this Act

Act of 1958. (a) “The Community” means the European Atomic Energy Com- Definitions. munity (EURATOM). (b) The “Commission” means the Atomic Energy Commission, as

68 Stat. 921. established by the Atomic Energy Act of 1954, as amended.

(c) “Joint program” means the cooperative program established by the Community and the United States and carried out in accordance with the provisions of an agreement for cooperation entered into pursuant to the provisions of section 123 of the Atomic Energy Act of 1954, as amended, to bring into operation in the territory of 42 USC 2153. the members of the Community powerplants using nuclear reactors of types selected by the Commission and the Community, having as a goal a total installed capacity of approximately one million kilowatts of electricity by December 31, 1963, except that two reactors may be selected to be in operation by December 31, 1965.

(d) All other terms used in this Act shall have the same meaning as terms described in section 11 of the Atomic Energy Act of 1954, 42 USC 2014. as amended. Sec. 3. There is hereby authorized to be appropriated to the Com- Research and

development mission, in accordance with the provisions of section 261 (a) (2) of the Atomic Energy Act of 1954, as amended, the sum of $3,000,000

Appropriation. as an initial authorization for fiscal year 1959 for use in a cooperative 42 USC 2017. program of research and development in connection with the types of reactors selected by the Commission and the Community under the joint program. The Commission may enter into contracts for such periods as it deems necessary, but in no event to exceed five years,

for the purpose of conducting the research and development program authorized by this section:

Provided, That the Community authorizes an equivalent amount for use in the cooperative program of research and development.

Sec. 4. The Commission is authorized, within limits of amounts Guarantee which may hereafter be authorized to be appropriated in accordance contracts. with the provisions of section 261 (a) (2) of the Atomic Energy Act 42 USC 2017. of 1954, as amended, to make guarantee contracts which shall in the aggregate not exceed a total contingent liability of $90,000,000 designed to assure that the charges to an operator of a reactor constructed under the joint program for fabricating, processing, and transporting fuel will be no greater than would result under the fuel fabricating and fuel life guarantees which the Commission shall establish for such reactor. Within the limits of such amounts, the Commission is authorized to make contracts under this section, without regard to the provisions of sections 3679 and 3709 of the Revised 31 USC 665. Statutes, as amended, for such periods of time as it determines to be 41 USC 5. necessary: Provided, however, That no such contracts may extend for a period longer than that necessary to cover fuel loaded into a reactor constructed under the joint program during the first ten years of the reactor operation or prior to December 31, 1973 (or December 31, 1975, for not more than two reactors selected under section 2 (c)), whichever is earlier. In establishing criteria for the selection of

(143)

72 Stat. 1085. projects and in entering into such guarantee contracts, the Commission shall be guided by, but not limited to, the following principles :

(a) The Commission shall encourage a strong and competitive atomic equipment manufacturing industry in the United States designed to provide diversified sources of supply for reactor parts and reactor fuel elements under the joint program;

(b) The guarantee shall be consistent with the provisions of this Act and of Attachment A to the Memorandum of Understanding between the Government of the United States and the Community, signed in Brussels on May 29, 1958, and in Washington, District of Columbia, on June 12, 1958, and transmitted to Congress on June 23, 1958;

(c) The Commission shall establish and publish minimum levels of fuel element cost and life to be guaranteed by the manufacturer as a basis for inviting and evaluating proposals.

(d) The guarantee by the manufacturer shall be as favorable as any other guarantee offered by the manufacturer for any comparable fuel element within a reasonable time period; and

(e) The Commission shall obtain a royalty-free, non-exclusive, irrevocable license for governmental purposes to any patents on inventions or discoveries made or conceived by the manufacturer in the course of development or fabrication of fuel elements during the

period covered by the Commission's guarantee. Nuclear ma- SEC. 5. Pursuant to the provisions of section 54 of the Atomic terial. Sale or lease. lease to the Community:

Energy Act of 1954, as amended, there is hereby authorized for sale or 42 USC 2074.

Thirty thousand kilograms of contained uranium 235

One kilogram of plutonium in accordance with the provisions of an agreement for cooperation between the Government of the United States and the Community

entered into pursuant to the provisions of section 123 of the Atomic 42 USC 2153. Energy Act of 1954, as amended : Provided, That the Government of

the United States obtains the equivalent of a first lien on any such material sold to the Community for which payment is not made in full

at the time of transfer. Acquisition Sec. 6. (a) The Atomic Energy Commission is authorized to purof nuclear chase or otherwise acquire from the Community special nuclear matematerials.

rial or any interest therein from reactors constructed under the joint program in accordance with the terms of an agreement for cooperation

entered into pursuant to the provisions of section 123 of the Atomic 42 USC 2153. Energy Act of 1954, as amended : Provided, That neither plutonium

nor uranium 233 nor any interest therein shall be acquired under this section in excess of the total quantities authorized by law. The Commission is hereby authorized to acquire from the Community pursuant to this section up to four thousand one hundred kilograms of plutonium for use only for peaceful purposes.

(b) Any contract made under the provisions of this section to acquire plutonium or any interest therein may be at such prices and for such period of time as the Commission may deem necessary: Provided, That with respect to plutonium produced in any reactor constructed under the joint program, no such contract shall be for a period greater than ten years of operation of such reactors or December 31, 1973 (or December 31, 1975, for not more than two reactors selected under section 2 (c)), whichever is earlier: And provided further, That no such contract shall provide for compensation or the payment of a purchase price in excess of the Commission's established price in effect at the time of delivery to the Commission for such material as fuel in a nuclear reactor.

:

72 Stat. 1086. (c) Any contract made under the provisions of this section to acquire uranium enriched in the isotope uranium 235 may be at such price and for such period of time as the Commission may deem necessary: Provided, That no such contract shall be for a period of time extending beyond the terminal date of the agreement for cooperation with the Community or provide for the acquisition of uranium enriched in the isotope U-235 in excess of the quantities of such material that have been distributed to the Community by the Commission less the quantity consumed in the nuclear reactors involved in the joint program: And provided further, That no such contract shall provide for compensation or the payment of a purchase price in excess of the Atomic Energy Commission's established charges for such material in effect at the time delivery is made to the Commission.

(d) Any contract made under this section for the purchase of special nuclear material or any interest therein may be made with

31 USC 665. out regard to the provisions of section 3679 of the Revised Statutes, as amended. (e) Any contract made under this section may be made without

41 USC 5. regard to section 3709 of the Revised Statutes, as amended, upon certification by the Commission that such action is necessary in the interest of the common defense and security, or upon a showing by the Commission that advertising is not reasonably practicable.

Nonliability Sec. 7. The Government of the United States of America shall not be liable for any damages 'or third party liability arising out of or resulting from the joint program: Provided, however, That nothing in this section shall deprive any person of any rights under section 170 of the Atomic Energy Act of 1954, as amended. The 42 USC 2210. Government of the United States shall take such steps as may be necessary, including appropriate disclaimer or indemnity arrangements, in order to carry out the provisions of this section.

Approved August 28, 1958.

of U. S.

48806 06011

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