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8 1 10.107 Appendix (-Form of indemnity

agreement with licensees processing plutonium for use in plutonium processing and fuel fabrication plants and furnishing insurance policies as proof of financial protection. This Indemnity Agreement No. --- is entered into by and between -(hereinafter referred to as the "licensee") and the United States Nuclear Regulatory Commission (hereinafter referred to as the "Commission“) pursuant to subsection 170c of the Atomic Energy Act of 1954, as amended (hereinafter referred to as "the Act“), and Section 201 of the Energy Reoganization Act of 1974, as amended.

ARTICLE I As used in this agreement:

1. "Byproduct material," "person," "source material," "special nuclear material," and "extraordinary nuclear occurrence" shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.

2. Except where otherwise specifically provided, "amount of financial protection" means the amount specified in Item 2a and b, of the Attachment annexed hereto as modified by paragraph 6, Article II, with respect to common occurrences.

3. (a) “Nuclear incident" means any occurrence including an extraordinary nuclear occurrence, or series of occurrences at the location or in the course of transportation causing bodily injury, sickness, disease, or death, or loss of or damage to property, or loss of use of property, arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of the radioactive material.

(b) Any occurrence, including an extraordinary nuclear occurrence, or series of occurrences causing bodily injury, sickness, disease or death, or loss of or damage to property, or loss of use of property, arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of:

i. The radioactive material discharged or dispersed from the location over a period of days, weeks, months or longer and also aris ing out of such properties of other material defined as “the radioactive material" in any other agreement or agreements entered into by the Commission under subsection 170c or k of the Act and so discharged or dispersed from the location" as defined in any such other agreement, or

ii. The radioactive material in the course of transportation and also arising out of such properties of other material defined in any other agreement entered into by the Commission pursuant to subsection 1706 or

k of the Act as “the radioactive material" and which is in the course of transportation shall be deemed to be a common occurrence. A common occurrence shall be deemed to constitute a single nuclear incident.

4. "In the course of transportation" means in the course of transportation within the United States, or in the course of transportation outside the United State and any other nation, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:

(a) With respect to transportation of the radioactive material to the location, such transportation is not by predetermination to be interrupted by the removal of the material from the transporting conveyance for any purpose other than the continuation of such transportation to the location or tem. porary storage incidental thereto:

(b) The transportation of the radioactive material from the location shall be deemed to end when the radioactive material is re. moved from the transporting conveyance for any purpose other than the continuation of transportation or temporarty storage incidental thereto;

(c) “In the course of transportation" as used in this agreement shall not include transportation of the radioactive material to the location if the material is also “in the course of transportation“ from any other "location" as defined in any other agree. ment entered into by the Commission pursuant to subsection 170c or k of the Act.

5. "Person indemnified" means the licensee and any other person who may be liable for public liability.

6. "Public liability" means any legal liability arising out of or resulting from a nuclear incident, except (1) claims under State or Federal Workmen's Compensacion Acts of employees of persons indemnified who are employed (a) at the location or, if the nuclear incident occurs in the course of transportation of the radioactive material, on the transporting vehicle, and (b) in connection with the licensee's possession, use or transfer of the radioactive material; (2) claims arising out of an act of war; and (3) claims for loss of or damage to, or loss of use of (a) property which is located at the location and lised in connection with the licensee's possession, lise, or transfer of the radioactive material, and (b) if the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehi. cle, containers lised in such transportation, and the radioactive material.

7. "The location" means the location de. scribed in Item 4 of the Attachment hereto.

8. "The radioactive material" means (a) any source, special nuclear, or byproduct material which (1) is both used or to be used

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in, or is processed or to be processed by, the protection for such amount in another licensee's plutonium processing and fuel form. fabrication plant or plants and is subject to 3. Any obligations of the licensee under the license or licenses designated in the Al subsection 53c(8) of the Act to indemnify tachment hereto, or (2) is produces as the the United States and the Commission from result of the operation of said plant or public liability, together with any public liaplants or (b) any source, special nuclear, orbility satisfied by the insurers under the byproduct material which is waste or con policy or policies designated in the Attachtamination from material described in para ment hereto, shall not in the aggregate graph 8(a). The words "used or to be used" exceed the amount of financial protection and “processed or to be processed" in this with respect to any nuclear incident, includparagraph cover source, special nuclear or ing the reasonable costs of intestigating and byproduct material which is “in the course settling claims and defending suits for of transportation" as used in the agreement damage. or is received at the plant for use or process 4. The obligations of the licensee under ing in the plant but which is, in fact, for ans this agreement shall apply only with respect reason, not so used or processed.

to nuclear incidents occurring during the 9. “United States" when used in a geo term of this agreement. graphical sense includes Puerto Rico and all 5. Upon the expiration or relocation of territories and possessions of the United

any license designated in Item 3 of the AlStates.

tachment, the Commission will enter into

an appropriate amendment of this agree. ARTICLE II

ment with the licensee reducing the amount 1. At all times during the term of the li. of financial protection required under this cense or licenses designated in Item 3 of the Article: provided, that the licensee is then Attachment hereto, the licensee will main entitled to a reduction in the amount of fitain financial protection in the amount nancial protection under applicable Comspecified in Item 2 of the Attachment and mission regulations and orders. in the form of the nuclear energy liability 6. With respect to any common occurinsurance policy designated in the Attach rence. ment. If more than one license is designated (a) If the sum of the limit of liability of in Item 3 of the Attachment, the licensee any Nuclear Energy Liability-Property Inagrees to maintain such financial protection surance Association policy designated in until the end of the term of that license Item 5 of the Attachment and the limits of which will be the last to expire. The licensee liability or all other nuclear energy liability shall, notwithstanding the expiration. ter insurance policies (facility form) applicable mination, modification, amendment, suspen to such common occurrence and issued by sion of revocation of any license or licenses Nuclear Energy Liability-Property Insurdesignated in Item 3 of the Attachment. ance Association exceeds $124,000,000, the maintain such financial protection in effect amount of financial protection specified in until all the radioactive material has been Item 2 a and b of the Attachment shall be removed from the location and transporta deemed to be reduced by that proportion of tion of the radioactive material from the lo the difference between said sum and cation has ended as defined in subpara $124.000.000 as the limit of liability of the graph 4(6), Article I, or until the Commis Nuclear Energy Liability-Property Insursion authorizes the termination or the modi- ance Association policy designated in Item 5 fication of such financial protection. The of the Attachment bears to the sum of the Commission will not unreasonably withhold limits or liability of all nuclear energy liabilsuch authorization.

ity insurance policies (facility form) applica2. In the event of any payment by the in- ble to such common occurrence and issued surer or insurers under a policy or policies by Nuclear Energy Liability-Property Insurspecified in Item 5 of the Attachment ance Association; hereto which reduces the aggregate limit of (b) If the sum of the limit of liability of such policy or policies below the amount of any Mutual Atomic Energy Liability Underfinancial protection. the licensee will writers policy designated in Item 5 of the promptly apply to his insurers for reinstate Attachment and the limits of liability of all ment of the amount specified in Item 2a of other nuclear energy liability insurance the Attachment (without reference to para policies (facility form) applicable to such graph o of Item 2) and will make all reason common occurrence and issued by Mutual able efforts to obtain such reinstatement. In Atomic Energy Liability Underwriters exthe event that the licensee has not obtained ceeds $36.000.000, the amount of financial reinstatement of such amount within ninety protection specified in Item 2 a and b of the days after the date of such reduction, and in Attachment shall be deemed to be reduced the absence of good cause shown to the con by that proportion of the difference betrary, the Commission may issue an order tucen said sum and $36,000,000 as the limit requiring the licensee to furnish financial of liability of the Mutual Atomic Energy Li

ability Underwriters policy designated in Item 5 of the Attachment bears to the sum of the limits of liability of all nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters:

(c) If any of the other applicable agree ments is with a person who has furnished financial protection in a form other than a nuclear energy liability insurance policy (facility f m) issued by Nuclear Enei gy Liability-Property Insurance Association or Mutual Atomic Energy Liability Underwrit. ers, and if also the sum of the amount of financial protection established under this agreement and the amounts of financial protection established under all other applicable agreements exceeds an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection, the obligations of the licensee shall not exceed a greater proportion of an amount equal to the sum of $160,000,000 and the amount available as secondary financial protection than the amount of financial protection established under this agreement bears to the sum of such amount and the amounts of financial protection established under all other applicable agreements.

(d) As used in the paragraph 6, Article II and in Article III, “other applicable agreements" means each other agreement en tered into by the Commission pursuant to

3+ to subsection 170c ork of the Act in which agreement the nuclear incident is defined as a "common occurrence." As used in this paragraph 6, Article II, “the obligations of the licensee" means the obligations of the licensee, under subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability, together with any public liability satisfied by the insurers under the policy or policies designated in the Attachment, and the reasonable costs of investigating and settling claims and defending suits for damage.

7. The obligations of the licensee under this Article shall not be affected by any failure or default on the part of the Commission or the Government of the United States to fulfill any or all of its obligations under this agreement. Bankruptcy or insol. vency of any person indemnified other than the licensee, or of the estate of any person indemnified other than the licensee, shall not relieve the licensee of any of its obligations hereunder.

Commission agrees to pay to such person those sums which such person would have been obligated to pay if such property had belonged to another: provided, that the obligation of the Commission under this paragraph 2 does not apply with respect to:

(a) Property which is located at the location described in Item 4 of the Attachment or at the location described in Item 3 of the declarations attached to any nuclear energy liability insurance policy designated in It 5 of the Attachment:

(b) Property damage due to the neglect of the person indemnified to use all reasonable means to save and preserve the property after knowledge of a nuclear incident:

(c) If the nuclear incident occurs in the course of transportation of the raidoactive material, the transporting vehicle and containers used in such transportation;

(d) The radioactive material.

3. The Commission agrees to indemnify and hold harmless the licensee and other persons indemnified as their interest may appear, from the reasonable costs of investigating, settling and defending claims for public liability.

4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability, such damage to property of persons legally liable for the nuclear incident (other than such property described in the proviso to paragraph 2 of this Article), and such reasonable costs described in paragraph 3 of this Article as in the aggregate exceed the amount of finan. cial protection.

(b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability, such damage to property of persons legally liable for the nuclear incident (other than such property described in the proviso to paragraph 2 of this Article), and to such reasonable costs described in paragraph 3 of this Article, as in the aggregate exceed $160,000,000.

5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.

6. The obligations of the Commission under this and all other agreements and contracts to which the Commission is a party shall not, with respect to any nuclear incident, in the aggregate exceed whichever of the following is the lowest: (a) $500,000,000; (b) $560,000,000 less the amount of financial protection required under this agreement; or (c) with respect to a common occurrence, $560.000.000 less the sum of the amounts of financial protection established under this agreement and all other applicable agreements.

7. The obligations of the Commission under this agreement, except to the licensee

ARTICLE III 1. The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.

2. With respect to damage caused by a nul clear incident to property of any person le gally liable for the nuclear incident, the

for damage to property of the licensee, shall plicable regulations or orders of the Comnot be affected by any failure on the part of mission, the term of this agreement shall the licensee to fulfill its obligations under not terminate until all the radioactive matethis agreement. Bankruptcy or insolvency of rial has been removed from the location and the licensee or any other person indemni. transportation of the radioactive material sied, or of the estate of the licensee or any from the location has ended as defined in other person indemnified, shall not relieve

paragraph 4(b). Article I. Termination of the Commission of any of its obligations

the term of this agreement shall not affect hereunder.

any obligation of the licensee or the ComARTICLE IV

mission under this agreement with respect

to any nuclear incident occurring during the 1. When the Commission determines that

term of this agreement. the United States will probably be required to make indemnity payments under the pro

UNITED STATES NUCLEAR REGULATORY visions of this agreement, the Commission

COMMISSION shall have the right to collaborate with the licensee and other persons indemnified in

ATTACHMENT the settlement and defense of any claim and shall have the right (a) to require the prior

Indemnits Agreement No. - -- ---approval of the Commission for the settle. Item 1 Licensee. - - - - - - ------ment or payment of any claim or action as Item 2 serted against the licensee or other person a. Amount of financial protection ---indemnified for public liability or damage to b. With respect to any nuclear incident. property of persons legally liable for the nu

the amount specified in Item 2a of this Alclear incident which claim or action the li

tachment shall be deemed to be (i) reduced censee or the Commission may be required

to the extent that any payment made by to indemnify under this agreement; and (b)

the insurer or insurer's linder a police or to appear through the Attorney General of

policies specified in Item 5 of this Altachthe United States on behalf of the licensee

ment reduces the aggregate amount of such or other person indemnified, take charge of such action and settle or defend any such

insurance policies below the amount speciaction. If the settlement or defense of any

fied in Item 2a and (ii) restored to the such action or claim is undertaken by the

extent that. following such reduction, the Commission, the applicant shall furnish all aggregate amount of such insurance polices reasonable assistance in effecting a settle is reinstated. ment or asserting a defense.

Item 3 - - License number or numbers--2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval Item 4. Location - --------of the Commission. ARTICLE V

Item
5-Insurance

Policy The parties agree that they will enter into No.(s).. . appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act

Item 6- The indemnits agreement desigof 1954, as amended, or licenses, regulations

nated above, of which this Attachment is a or orders of the Commission.

part, is effective as of 12:01 a.m., on the ARTICLE VI

- - day of ---, 19

For the U.S. Nuclear Regulatory CommisThe licensee agrees to pay the Commis.

sion. sion such fees as are established by the Commission pursuant to regulations or

For-- -- - - -------- --- --others of the Commission.

By - -- - - -------- ----- -

Dated at Bethesda, Maryland, the -Article VII

day of . -- 19--. The term of this agreement shall com

(Sec. 201, Pub. L. 93-438, as amended, 88 mence as of the date and time specified in

Stat. 1242, 89 Stal. 415 (42 U.S.C. 5814)) Item 6 of the Attachment and shall terminate at the time of expiration of that li- (42 FR 51, Jan. 3, 1977, as amended at 42 cense specified in Item 3 of the Attachment. FR 20141. Apr. 18, 1977: 44 FR 20633, Apr. 6, which is the last to expire; provided that, 1979; 44 FR 24045. Apr. 24. 1979: 45 FR execpt as may otherwise be provided in ap. 37410, June 3, 1980)

$ 110.108 Appendix Il-Form of indemnity

agreement with licensees possessing plutonium for use in plutonium proc. essing and fuel fabrication plants and furnishing proof of financial protection in the form of the licensee's re

sources. This Indemnity Agreement No. --- is entered into by and between --- (hereinafter referred to as the "licensee") and the United States Nuclear Regulatory Commission (hereinafter referred to as the "Commission“) pursuant to subsection 170 c of the Atomic Energy Act of 1954, as amended (hereinafter referred to as “the Act"), and Section 201 of the Energy Reorganization Act of 1974, as amended.

ARTICLE I As used in this agreement:

1. "Byproduct material," "person," "source material," "special nuclear material," and "extraordinary nuclear occurrence" shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission. 2. "Amount of financial protection" means

amount specified in Item 2 or the Al tachment annexed hereto.

3. "Nuclear incident" means any occur rence including an extraordinary nuclear occurrence, or series of occurrences at the location or in the course of transportation causing bodily injury, sickness, disease, or death, or loss of or damage to property, or loss of use of property, arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of the radioactive material.

(b) Any occurrence, including an extraordinary nuclear occurrence of series of occurrences causing bodily injury, sickness, disease or death, or loss or damage to property, or loss of use of property, arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of

i. The radioactive material discharged or dispersed from the location over a period of days, weeks, months or longer and also arising out of such properties of other material defined as “the radioactive materials in any other agreement or agreements entered into by the Commission under subsection 170 c or k of the Act and so discharged or dispersed from “the location" as defined in any such other agreement, or

ii. The radioactive material in the course of transportation and also arising out of such properties of other material defined in any other agreement entered into the Commission pursuant to subsection 170 c or k of the Act as “the radioactive material" and which is in the course of transportation shall be deemed to be a common occurrence

A common occurrence whall be deemed to constitute a single nuclear incident.

4. "In the course of transportation" means in the course of transportation within the United States, or in the course of transportation outside the United States and any other nation, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:

(a) With respect to transportation of the radioactive material to the location, such transportation is not be predetermination to be interrupted by the removal of the material from the transporting conveyance for any purpose other than the continuation of such transportation to the location or temporary storage incidental thereto:

(b) The transportation of the radioactive material from the location shall be deemed to end when the radioactive material is removed from the transporting conveyance for any purpose other than the continuation of transportation or temporary storage incidental thereto:

(c) "In the course of transportation" as used in this agreement shall not include transportation of the radioactive material to the location is the material is also “in the course of transportaton" from any other "location" as defined in any other agreement entered into by the Commission pursuant to subsection 170 c or k of the Act.

5. “Person indemnified" means the licensee and any other person who may be liable for public liability.

6. "Public liability“ means any local liability arising out of or resulting from a nuclear incident, except (1) claims under State or Federal Workmen's Compensation Acts of employees of persons indemnified who are employed (a) at the location or, if the nuclear incident occurs in the course of transportation of the radioactive material, on the transporting vehicle, and (b) in connection with the licensee's possession, use or transfer of the radioactive material: (2) claims arising out of an act of war: (3) claims for loss of, or damage to, or loss of use of (a) property which is located at the location and used in connection with the licensee's possession, use, or transfer of the radioactive material, and (b) if the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle, containers used in such transportation, and the radioactive material.

7. “The location" means the location described in Item 4 of the Attachment hereto.

8. "The radioactive material" means (a) any source, special nuclear, or byproduct material which (1) is both used or to be used in, or is processed or to be processed by, the licensee's plutonium processing and suel fabrication plant or plants and is subject to the license or licenses designated in the Al

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