J. "input measurements": the sampling and measurements performed in accordance with Article XXXI to determine the amount and the value of uranium and/or plutonium contained in irradiated reactor material delivered hereunder. K. "irradiated reactor material": irradiated material, including but not limited to source and special nuclear material, discharged from the core of a nuclear reactor or from the regions of a nuclear reactor surrounding the core, after operation of a nuclear reactor. L. "measured input value": the value of uranium and/or plutonium contained in each processing lot as determined by the input measurements. M. "measured losses": the value of uranium and/or plutonium discharged as waste from the chemical processing of each processing lot, as determined in accordance with Article XXXI. The isotopic content of the uranium and/or plutonium in the waste streams from any given processing lot shall conclusively be deemed to be the same as the average isotopic content of the uranium and/or plutonium in such processing lot as determined by the input measurements. N. "Plant": the chemical processing plant to be designed and constructed by Bechtel Corporation for the Contractor at the Western New York Nuclear Service Center, Cattaraugus County, New York. 0. "Plant Construction Agreement": any agreement between the Contractor and Bechtel Corporation for the design, engineering and/or construction of the Plant, as the same may be amended from time to time. P. "plutonium": includes any isotope of plutonium. Q. "processing lot": that amount of specification material designated by the Commission in accordance with Article IV for chemical processing. R. "processing unit": the amount of specification material set forth in Appendix A for each Material Category. S. "processing year": each period of 12 consecutive months commencing on a date which the parties shall agree upon in writing, and each anniversary thereof; in the event of failure to agree upon such an initial date, it shall conclusively be deemed to be that date which is 180 days after the date upon which the Contractor is granted a license by the Commission to operate the Plant. T. "recovered product": nitrate compounds of uranium and/or plutonium meeting the specifications set forth in Appendix C. U. "recovered product measurements": the sampling and measurements performed in accordance with Article XXXI to determine the value of uranium and/or plutonium contained in recovered product. V, "recovered product value": the value of uranium and/or plutonium contained in recovered product from each processing lot, as determined by the recovered product measurements. W, "revenue unit": a unit of measure with respect to irradiaved reactor material to be chemically processed hereunder. Except as otherwise provided in Article XI, a processing lot will be equivalent to a number of revenue units determined by the following formulae: 4/3 of W/P, where W/P is 24 or more. The terms W and P are defined for any given processing lot in accordance with X. "source material": (i) uranium, thorium, or any other material which is determined by the Commission pursuant to the provisions of section 61 of the Act to be source material; or (ii) ores containing one or more of the foregoing materials, in such concentration as the Commission may by regulation determine from time to time. Y. "special nuclear material": (i) plutonium, uranium enriched in the isotope 233 or in the isotope 235, and any other material which the Commission, pursuant to the provisions of section 51 of the Act, determines to be special nuclear material, but does not include source material; or (ii) any material artificially enriched by any of the foregoing, but does not include source material. Z. "specification material": irradiated reactor material which conforms to the General Specifications and the particular specifications for that Material Category which the Commission shall designate for chemical processing hereunder, and which also conforms to the Specific Material Description supplied by the Commission hereunder. General Specifications and Material Categories for irradiated reactor material to be delivered under this contract, as well as the form for a Specific Material Description, are set forth in Appendix A as the same may be amended from time to time. AA. "uniform rounding practice": when the number to the right of the relevant number is 4 or less, the relevant number remains unchanged; when the number to the right is 6 or more, the relevant number is increased to the next higher number; when the number to the right is 5 and the relevant number is odd, the relevant number is increased to the next higher number; when the number to the right is 5 and the relevant number is even, including zero, the relevant number remains unchanged. BB "uranium": includes any isotope of uranium. CC. "value": (1) with respect to uranium (excluding U-233, and mixtures of U-235 and U-233 as defined by the Commission and published in the Federal Register from time to time) the dollar amount determined by multiplying the applicable base charge by the weight of such material involved, regardless of the chemical form or purity of such material. (2) With respect to (1) U-233, (ii) mixtures of U-233 and U-235 as defined by the Commission and published in the Federal Register from time to time, or (iii) plutonium, the dollar amount determined by multiplying the Commission's price by the weight of such material involved, regardless of the chemical form or purity of such material. DD. "waste": any solid, liquid or gaseous waste material resulting from the chemical processing in the Plant of irradiated reactor material, including but not limited to source material, special nuclear material and byproduct material. A. The Commission agrees to deliver to the Contractor for chemical processing, and the Contractor agrees to furnish all labor, services, materials, supplies, tools, utilities, machinery and equipment, and shall perform all work necessary to chemically process the following: (1) An amount of specification material equivalent to approximately 625, but not less than 622 nor more than 650, revenue units; and (2) Subject to the provisions of Article II.G., the amount of B. The number of revenue units which the Commission will be obligated to deliver for chemical processing as provided in paragraph A.(1) of this Article II shall be reduced, at the option of the Commission, to the extent that the Contractor shall have chemically processed during the term of this. contract for all customers (including the Commission) an amount of irradiated reactor material in excess of 1500 revenue units, except as otherwise provided below. (1) The number of revenue units chemically processed by the Contractor shall be determined as follows: (a) The number of revenue units of specification material chemically processed for the Commission shall be determined in accordance with the formulae set forth in the definition of revenue unit and in accordance with Article XII. (b) The amount of irradiated reactor material chemically processed for other customers of the Contractor, the turnaround charges related thereto, idle Plant time charges and charges for special services (for the Commission and others) shall be converted into revenue units in accordance with a formula to be mutually agreed upon, (c) For any processing year in respect of which an adjustment in charges is made as provided in Article XXVI, the number of revenue units chemically processed during such year, determined as provided in (a) and (b) above, shall be adjusted, for the purposes of this Article II, as follows: (1) If the number of revenue units is in excess of 300 but not in excess of 350, the number of revenue units chemically processed in such processing year shall be deemed to be 300 plus 10% of the excess over 300; (11) If the number of revenue units is in excess of 350, the number of revenue units chemically processed in such year shall be deemed to be 305 plus 90% of the excess over 350. (2) If the Contractor shall have chemically processed any small processing lot (as defined in Article XI) as a separate processing lot or if the Contractor combines small processing lots into a processing lot containing less than 8 processing units, the 1500 revenue unit base referred to in the first sentence of this Article II B, shall be increased by a number equivalent to the difference between (1) the number of revenue units represented by such processing lot if determined in accordance with the formula set forth in paragraph W. of Article I and (ii) the number of revenue units represented by such processing lot if determined in accordance with the formula set forth in paragraph H. of Article XI; provided, however, that to the extent that the 1500 revenue units base is increased as provided above, it shall be decreased if the Contractor combines any small processing lot into a processing lot containing a total of 8 or more processing units by a number equal to (1) the difference between the total number of revenue units represented by such combined processing lot for which the Contractor has been paid, computed by adding the number of revenue units represented by each component thereof, minus (ii) the number of revenue units represented by such combined processing lot if determined in accordance with paragraph W. of Article I. C. The Contractor shall separate and recover the recoverable uranium and plutonium contained in specification material delivered to it hereunder in the form of recovered product. D. The Contractor shall receive, unload and store at the Plant, as provided herein, all specification material delivered by the Commission in accordance with the provisions of this contract, and shall perform all other duties and obligations hereinafter expressly set forth, including but not limited to routine decontamination and repair of Commission-furnished containers, reshipment of Commission-furnished containers used to deliver material, measurements, chemical and isotopic analyses, furnishing of data and reports, delivery of recovered product, and provision for storage, disposal and perpetual maintenance of waste. E. The Contractor shall, in addition to its other obligations hereunder, provide a chemical processing service for persons licensed by the Commission, and others, in accordance with the provisions of Article XIII. F. The services, or any part thereof, provided for under this Article II may be subcontracted by the Contractor only with the prior written consent of the Contracting Officer and upon such conditions as the Contracting Officer may impose. This Article II F. shall not apply to any subcontract for standard commercial products, equipment or supplies. G. If the irradiated reactor material in Material Categories 1 and 4 delivered to the Commission for financial settlement prior to January 1, 1966, referred to in Article II.A.(2), does not meet the General Specifications set forth in Appendix A hereto, the Commission shall so advise the Contractor in writing within 60 days after delivery to the Commission, or the date of this contract, whichever is later. The Contractor shall, as soon as practicable thereafter, deliver to the Commission a written statement of the charges, terms and conditions upon which the Contractor shall chemically process such material. The Contractor's proposed charges shall not exceed those determined in accordance with the following principles which have been established by the Contractor in its dealings with other customers: i. The size of a processing unit shall be adjusted to reflect differences in the rate of processing; ii. The Processing Charge set forth in Article VI hereof shall be adjusted, if necessary, to reflect changes in operating costs and expenses by reason of the deviation of such material from the General Specifications; iii. The cost of any new capital additions and improvements shall be borne by the Commission (the necessary capital to be provided in a manner to be mutually agreed upon); iv. If as a result of such capital additions or improvements, the cost of which has been borne by the Commission, the Contractor shall realize any net savings of operating costs or recoupments of capital, the Commission will receive an appropriate credit reflecting such net savings or recoupments; and v. If the Contractor shall make use of such capital additions The Commission shall, as soon as practicable, make a determination as to whether the Contractor's charges, terms and conditions for the processing of such material are reasonable or unreasonable and shall advise |