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The Commission shall have the right to inspect the Generating Plant and related facilities at all reasonable times during the period of their construction and to require conformance with those features of the designs, plans and specifications which could affect the safe and effective operation of the NPR or of other plants and facilities of the Commission at its Hanford Works, and the Safety Standards for Construction Work and all other Safety Standards of the Division of Safety, State of Washington, and the AEC Health and Safety Manual Chapters AEC # 0501, 0524, 0525, and 0550, and the HA Health and Safety Chapters HA 0502, 05H1 and 0552, in effect at the time. The Supply System shall use its best efforts to conform to its time schedules. 4. Future Studies Conducted by the Commission

In the event the Commission determines it to be desirable to do so, the Commission will conduct and deliver to the Supply System studies relating to the safe, efficient and effective operation of the Generating Plant as affected by the NPR and of the NPR as affected by the Generating Plant. In addition, upon request of the Supply System and if it is not inconsistent with the Commission's primary mission of implementing the Commission's program, the Commission will conduct and deliver to the Supply System such studies to the extent they are not reasonably available from commercial sources. 5. Modification of the NPR for Electric Power Generation

To the extent the Commission agrees that it will be in the best interests of the Government, the Commission will undertake to modify the NPR and other equipment and facilities within the NPR Security Area, as requested by the Supply System to improve the quality and dependability of the steam for the generation of electric power. In addition, the Commission will make such modifications in the NPR and said equipment and facilities as the Commission determines are necessary because of the Generating Plant to insure the continued safe, effective and efficient operation of the NPR. Title to all modifications made pursuant to this Article shall vest in the Commission. 6. Operation of the Generating Plant

The Supply System will, at all reasonable times during the period this contract remains in effect, permit the Commission to insp and review the Supply System's operation of the Generating plant and agrees, at its expense, to undertake promptly programs as directed by the Commission as a result of such inspection and review which will assure that the operation or maintenance of the Generating Plant will not impair the effectiveness of the NPR and other Commission facilities. During any period in which the Commission determines that an emergency exists, relating to the safety or efficiency of the NPR and other equipment and facilities within the NPR Security Area, the Commission may direct all actions and operations involving the Generating Plant and related facilities until the emergency is terminated. 7. Delivery of Steam Energy

(a) The Commission will make available to the Supply System during the period of Dual Purpose Operation at the security fence line or such other point as is mutually agreed upon by the parties all steam energy in excess of the needs of the Commission which is produced incident to the operation by the Commission of the NPR.

(b) The Supply System will accept delivery of steam energy made available by the Commission at rates of flow to be established in advance by the Supply System. The Commission will, except for conditions beyond its control, and to the extent consistent with the safe, efficient and effective operation of the NPR for the Commission's program, deliver steam energy to the Supply System in accordance with the Supply System's schedule at a pressure suitable for the efficient operation of the Generating Plant.

(c) In the event the operation of the Generating Plant and related facilities by the Supply System results in the loss or degradation of the chemical quality of steam or condensate and, as a result, the Commission utilizes additional purified make-up water to replace the steam or condensate which has been lost or degraded, the Supply System will pay the Commission, in accordance with Article 12, for such additional purified make-up water. 8. Conversion of the NPR to Power Only Operation

(a) The Commission reserves the right to suspend its operation of the NPR at any time upon a date specified in a written notice to the Supply System, such notice to be given as far in advance as is reasonably practicable and as the Commission deems is consonant with national security and the health and safety of the public. In such event, if the Supply System makes written request of the Commission to suspend its operation of the NPR at a date earlier than that specified in the Commission's notice, the Commission will exercise its best efforts to fulfill the Supply System's request to the extent that the Commission determines that fulfilling such request is in the best interests of the Government.

(b) After notice by the Commission to the Supply System of the suspension of Dual Purpose Operation, the Commission shall forthwith undertake to modify the NPR and other equipment and facilities within the NPR Security Area for adaptation to Power Only Operation. Modifications shall be those requested by the Supply System which the Commission determines will not impair the safety and effectiveness of the NPR and other Commission facilities. In addition, the Commission will make such modifications in the NPR and other equipment and facilities within the NPR Security Area as the Commission determines are necessary because of the Generating Plant as modified in accordance with paragraph (c) of this Article to insure the continued safe, effective and efficient operation of the NPR. Title to such modifications shall vest and remain in the Commission unless removed as provided in paragraph (h) hereof.

(c) The Supply System shall, at its expense, accomplish all modification which may be necessary or desirable in the Generating Plant and related facilities for Power Only Operation. The Supply System will submit all of its schedules, designs, plans and specifications for the modification of the Generating plant and related facilities to the Commission for approval by the Commission of any features thereof which the Commission determines could affect the safe and effective operation of the NPR or of other plans and facilities of the Commission at its Hanford Works. The Supply System will modify the Generating Plant and related facilities in strict conformance with the approved designs, plans and specifications. The Commission shall have the right to inspect the Generating Plant and related facilities at all reasonable times during the period of their modification and to require conformance with those features of the designs, plans and specifications and the safety standards listed in Article 3(c) hereof which could affect the safe and effective operation of the NPR or of other plants and facilities of the Commission at its Hanford Works. The Supply System shall use its best efforts to conform to its time schedules.

(d) It will be the responsibility of the Supply System upon receipt of notice of the suspension of Dual Purpose Operation to obtain any federal, state or local license or approval required by law or regulation which may be a condition precedent to possession and operation of the NPR.

(e) After completion of the modifications provided for in the preceding paragraphs (b) and (c), or after the Supply System obtains the licenses or approvals referred to in paragraph (d) above, whichever event occurs later, the Commission will tender to the Supply System under the NPR Lease possession of the NPR, other equipment and facilities within the NPR Security Area, and appurtenant land for the remaining term of this contract, and the Supply System will take possession thereof. During any period after suspension of operation of the NPR by the Commission pursuant to paragraph (a) above and prior to the commencement of Power Only Operation, the Commission shall maintain the NPR in a stand-by condition and the Supply System will pay to the Commission the cost of the maintenance and protection of the NPR by it during such period in accordance with Article 12.

(f) After taking possession and at all times while it is operating and maintaining the NPR, the Supply System agrees to permit the Commission to inspect and review the operation and maintenance of the NPR, and agrees, at its expense, to undertake promptly programs, as directed by the Commission as a result of such inspection and review, which will assure that the NPR's effectiveness is preserved. During any period in which the Commission determines that an emergency exists relating to the safety and efficiency of the NPR and other equipment and facilities within the NPR Security Area, the Commission may direct all actions and operations to assure efficient and effective operation of the NPR until the emergency is terminated.

(g) To the extent and under the same terms and conditions that it would provide comparable materials and services to other licensees operating electric generating plants, the Commission will make available to the Supply System for Power Only Operation special nuclear material for fuel and during Power Only Operation will perform fuel cycle services.

(h) Notwithstanding any other provision of this contract, the Commission reserves the right, at any time, with or without prior notice, to suspend the NPR lease and resume Dual Purpose Operation of the NPR. The Commission will make such modifications as it deems necessary, including the removal of any unusable facilities, in order to restore the NPR to Dual Purpose Operation, and the Supply System will pay the Commission the cost thereof, in accordance with Article 12, to the extent required to place the NPR in its condition prior to conversion to Power Only Operation, except that due allowance shall be made for reasonable wear and tear. It is agreed, however, that such recapture of the NPR by the Commission shall not bar the Commission from subsequently suspending Dual Purpose Operation as provided in paragraph (a) above. 9. Government-Furnished Supplies and Services

The Commission shall, after reasonable notice, provide to the Supply System the Supply System's requirements of each of the supplies and services hereinafter enumerated to the extent the Commission determines that they are available; and the Commission may, at its option, and after application of the Supply System therefor, make available to the Supply System any other supplies and services, including the training of personnel, which the Commission deems to be in the interest of the Government to make available; Provided, however, that in all cases by supplying any item, the Commission shall incur no obligation to continue to supply such item but may, in its discretion, discontinue such item at any time that it determines such item to be unavailable:

(1) Hanford Area Railroad Switching.
(2) Telephone service.
(3) Security clearances.
(4) Electric power.
(5) Potable water.

(6) Fire protection.
10. Information Relating to Modifications of Facilities

(a) Whenever the Supply System requests the Commission to make modifications in the NPR or other equipment and facilities inside the NPR Security Area, the Commission shall determine whether additional modifications in the NPR or such other equipment and facilities will be necessary to assure the continued safe, effective and efficient operation of the NPR if the requested modifications are made. Before undertaking any such modifications, the Commission will notify the Supply System of any such additional modifications it has determined will be necessary and will inform the Supply System of the reasons therefor and of the estimated cost thereof.

(b) Whenever any modifications are determined by the Commission to be necessary because of the existence or operation of the Generating Plant to assure the continued safe, effective and efficient operation of the NPR in the absence of any modifications requested by the Supply System, the Commission will also, before undertaking any modifications in the NPR or directing that any modifications be made in the Generating Plant, notify the Supply System of any such modifications and inform it of the reasons therefor and the estimated cost thereof. 11. Charges to the Supply System for Availability of Steam Energy

(a) In consideration for the steam energy made available hereunder, the Supply System shall pay the Commission for each year of Dual Purpose Operation in accordance with the following schedule of annual charges. The payments provided for in paragraph (b) of this Article shall in any event commence on October 1, 1965, unless the completion of the first unit of the Generating Plant is delayed beyond such date for causes beyond the control and not due to the fault or negligence of the Supply System in which event such payments shall commence when the first unit has been certified as ready for normal continuous operation.

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(b) During each month beginning on the date specified in paragraph (a) above and until the end of Dual Purpose Operation payment shall be made in the amount of one-twelfth of the total amount stated for the applicable year. If the Commission suspends Dual Purpose Operation in accordance with Article 8(a) hereof, payments shall be suspended as of the date Dual Purpose Operation is suspended, and the payment for the month in which such date occurs shall be pro rated. In the event the Dual Purpose Operation is later resumed, payments shall be resumed from the point in the table at which payments were suspended as if no suspension had occurred.

(c) During Dual Purpose Operation any interruption in the availability of steam energy from the NPR or any reduction of the Supply System's demand for steam shall not reduce or diminish in any manner the Supply System's obligation otherwise to make payment as provided herein for that period. 12. Compensation for Commission Costs

(a) Except as otherwise provided in Article 3(b) herein, the Commission shall be compensated by the Supply System in accordance with established uniform Commission pricing policy for all design, construction, materials, services, supplies, studies, inspection, protection and all other activities (except the delivery of steam energy for which payment is provided in Article 11) undertaken by it pursuant to or in relation to the terms and provisions of this contract, including both those activities for which specific provision for compensation is made and those activities which are described generally in the contract but for which express provision for compensation is not made (including but not limited to those set forth in Articles 3 (c), 4, 5, 6, 7, 8(b), 8(c), 9 and 10). The extent to which the Supply System shall pay the cost of an activity undertaken by the Commission pursuant to or in relation to the terms and provisions of this contract shall be determined by the extent to which the necessity for such activity is the direct result of the existence of the Generating Plant and would not otherwise have been undertaken to such extent or at all but for the existence of the Generating Plant.

(b) The price or charge in effect at the time any particular transaction under this contract takes place will be the price or charge

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