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6. Delivery of Recovered Product

Unless otherwise authorized in advance by the Contracting Officer:

(1) Delivery of recovered product shall be made f.o.b. commercial conveyance at the Plant, within 30 days after the parties have agreed as to the quantity and quality of the recovered product. The Contractor shall arrange for the shipment of recovered product and shall notify the Commission promptly when delivery has been made. The Contractor shall package the recovered product in Contractor-furnished containers as provided in Article X;

(2) The Contractor shall deliver all recovered product resulting from chemical processing of all specification material requested pursuant to paragraphs A. (1) and (2) of this Article IV within 12 months from the respective first day on which the Contractor is authorized (as provided in paragraph B. (1) above) to proceed with the chemical processing of the material requested;

(3) Recovered product from all specification material chemically processed hereunder shall be delivered during the term of this contract.

ARTICLE V FIRM SCHEDULE OF PROCESSING

A. While it is the intention of the parties that the Commission will in most instances follow the scheduling procedures specified in Article III and IV hereof, it is recognized that at times the Commission may desire to have certain specification material chemically processed by the Contractor in accordance with a firm schedule and subject in all other respects to the terms of this contract. In such event the Commission may at any time request a firm schedule for the chemical processing of a particular processing lot. The Contractor shall thereupon schedule the commencement of chemical processing of such processing lot on the earliest practicable date consistent with its commitments to the Commission and to others. The Contractor shall promptly complete, sign and send to the Commission two copies of the proposed firm schedule, and the Commission shall, if said firm schedule is acceptable to it, execute and return a copy thereof to the Contractor, whereupon the terms thereof shall be binding upon both parties.

B. In requesting a firm schedule the Commission may direct the Contractor to delay or postpone the scheduled chemical processing of all or part of a processing lot or lots for the Commission.

ARTICLE VI CHARGES FOR CHEMICAL PROCESSING

A. The Commission shall pay to the Contractor, in consideration for the work performed by the Contractor for the Commission as provided in this contract, the following charges:

(1)

Processing Charge. For each processing lot designated hereunder, an amount calculated by the following formula:

(W/P) (C plus Í) plus T

As used in this formula, the foregoing terms shall have the following meanings:

W

The weight of the processing lot, determined in accordance with Article XXXI, in terms of the materials set forth in Appendix A for that Material Category in which the processing lot falls.

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The processing unit for that Material Category in which the processing lot falls.

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C - A basic charge in the amount of $23,500 per processing

I

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The incremental charge, if any, per processing unit as set forth in Appendix A for that Material Category in which the processing lot falls.

T - A turnaround. charge, calculated by the following formula:

If W/P is less than 24, T equals (8)(C)

If W/P is 24 or more, T equals (W/P)(C/3)

The terms W, and (W/P) shall be determined to the nearest hundredth of an integer. The terms C and T shall be determined to the nearest dollar. Uniform rounding practice shall be followed.

(2) Stainless Steel Waste Storage Tank Charge. The actual cost to the Contractor for the design, construction and installation of stainless steel tanks (including spare tanks, as described below, and all equipment necessary to operate the tanks in conjunction with the Plant) for the storage of waste resulting from the chemical processing of specification material in Material Categories 3 and 5. The Contractor may elect to provide separate tanks for the storage of waste resulting from the chemical processing of specification material in Material Categories 3 and 5.

The Commission shall, no later than July 1, 1966, notify the Contractor in writing of the number of processing units of specification material falling into Material Categories 3 and 5 which the Commission will designate for chemical processing hereunder. Such notification shall constitute an authorization to the Contractor to proceed to take all steps necessary to design, construct and install the stainless steel waste storage tank or tanks having an effective capacity determined as follows: (i) For each processing unit of specification material in Material Category 3 which the Commission advises will be designated for chemical processing, 367 gallons of effective capacity; and. (ii) for each processing unit of specification material in Material Category 5 which the Commission advises will be designated for chemical processing, 2,000 gallons of effective capacity.

In addition to the tank or tanks to be designed, constructed and installed in accordance with (i) and (ii) above, the Contractor shall

design, construct and install the minimum number of spare tanks necessary to comply with all applicable state and federal regulations (including regulations of the Commission), provided however, that in any event the Contractor shall build at least one spare tank for every 5 working tanks. In ascertaining the "minimum number of spare tanks" to be designed, constructed and installed as provided in the preceding sentence, the following procedures shall be observed. The Contractor shall apply to the Commission's Division of Licensing and Regulation (and to any other governmental regulatory agency having jurisdiction) for permission to build the tank or tanks necessary to store the waste resulting from the chemical processing of specification material in Material Categories 3 and 5, plus one, spare tank. If this application is not approved, the Contractor shall build such number of spare tanks as shall be required by the Commission's Division of Licensing and Regulation (and any other governmental regulatory agency having jurisdiction).

The Contractor shall complete design, construction and installation of the stainless steel waste storage tank or tanks (including spare tanks) and equipment within two years after the Commission's notification, as provided above.

For the purposes of this Article VI, the parties agree that it will be conclusively presumed that the number of gallons of waste per processing unit for each of the materials in Material Categories 3 and 5 shall be 367 and 2,000 gallons, respectively, regardless of the number of gallons of waste actually generated by the chemical processing of each processing unit of such material.

The Commission shall pay for the actual cost of design, construction and installation of the above mentioned stainless steel waste storage tanks (including spare tanks and equipment) in accordance with the following formulae: (i) For each processing unit of specification material in Material Category 3 chemically processed, an amount equal to (367/X)(Y); and (ii) for each processing unit of specification material in Material Category 5 chemically processed, an amount equal to (2000/X)(Y).

In the above mentioned formulae, the following symbols shall have the following meaning:

X

Effective capacity of the tank or tanks (excluding spare tanks) designed, constructed and installed.

Y

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Actual cost of design, construction and installation of stainless steel waste storage tanks, spare tanks and equipment as provided in this Article VI A.(2).

All payments under this Article VI A. (2) shall be made as prescribed in Article XIX. The total charge payable by the Commission for the stainless steel waste storage tanks (including spare tanks) shall not exceed $750,000 for each tank having an effective capacity of 90,000 gallons or less.

In lieu of making payment as provided in the preceding

paragraph the Commission may elect, at its option, to pay the entire actual cost of the design, construction and installation of such stainless steel waste storage tanks (including spare tanks) and equipment upon completion of such design, construction and installation.

In the event the Commission shall fail to designate for

chemical processing the number of processing units of specification material falling into Material Categories 3 and 5 set forth in its notification, the Commission shall pay to the Contractor the actual cost for design, construction and installation of the tanks and equipment which has not been paid for as provided above.

In the event the Commission shall have failed to designate for chemical processing the number of processing units of specification material falling into Material Categories 3 and 5 set forth in its notification, and shall have paid to the Contractor the actual cost for design, construction and installation of tanks and equipment, as provided above, and if the Contractor utilizes such tanks for storage of the waste of others it shall repay to the Commission an amount per processing unit (or its equivalent) the waste from which is stored in the tanks, equal to that provided in the foregoing formula, except as otherwise agreed upon.

(3) Carbon Steel Waste Storage Tank Charge. The actual cost to the Contractor for the design, construction and installation of carbon steel tanks (including spare tanks, as described below, and all equipment necessary to operate the tanks in conjunction with the Plant) for the storage of cladding waste resulting from the chemical processing of specification material in Material Categories 6 and 8. The Contractor shall store in a common tank the cladding waste resulting from the chemical processing of specification material in both Material Categories 6 and 8 for which the Commission shall furnish a notification, as provided below, at a single time.

The Commission shall, no later than July 1, 1965, notify the Contractor in writing of the number of processing units of specification material falling into Material Categories 6 and 8 which the Commission will designate for chemical processing hereunder.

The parties shall agree upon the number of grams of aluminum contained in the cladding of each processing unit, by means of computations based upon the drawings of specific fuel elements for such processing unit. Any disagreements with respect to such computations shall be subject to Article XLVIII. Upon agreement of the parties, or resolution of disagreements, the number of grams of aluminum contained in the cladding of each such processing unit shall be conclusively established for the purposes of this Article VI A.(3) regardless of the amount actually present therein.

Such notification shall constitute an authorization to the Contractor to proceed to take all steps necessary to design, construct and install the carbon steel waste storage tank or tanks having an effective capacity determined as follows: for each processing unit of specification material in Material Categories 6 and 8 which the Commission advises will be designated for chemical processing:

21-261 0-64———————18

V = (A1/165,556)

In the above mentioned formula, the following symbols shall have the following meaning:

Al

The number of grams of aluminum contained in the cladding per processing unit, determined as provided above.

V The volume of waste per processing unit expressed in gallons.

In addition to the tank or tanks to be designed, constructed and installed in accordance with the fourth paragraph of this Article VI A. (3), the Contractor shall design, construct and install the minimum number of spare tanks necessary to comply with all applicable state and federal regulations (including regulations of the Commission). In ascertaining the "minimum number of spare tanks," to be designed, constructed and installed as provided in the preceding sentence, the following procedures shall be observed. The Contractor shall apply to the Commission's Division of Licensing and Regulation (and to any other governmental regulatory agency having jurisdiction) for permission to build the tank or tanks necessary to store the cladding waste from Material Categories 6 and 8, without any spare tanks, on the basis that the Contractor's basic carbon steel tank farm for the Plant will provide adequate spare tank capacity. If this application is not approved, the Contractor shall build such spare tank or tanks as shall be required by the Commission's Division of Licensing and Regulation (and any other governmental regulatory agency having jurisdiction).

The Contractor shall complete design, construction and installation of the carbon steel waste storage tank or tanks (including ...spare tanks) and equipment within two years after the Commission's notification, as provided above; provided, however, that if the Commission's notification shall be given prior to January 1, 1964, the design, construction and installation shall be completed not later than July 1, 1965. For the purposes of this Article VI, the parties agree that it will be conclusively presumed that the number of gallons of waste per processing unit for each of the fuels in Material Categories 6 and 8 shall be determined by the formula contained above in this paragraph regardless of the number of gallons of waste actually generated by the chemical processing of each processing unit of such material.

The Commission shall pay for the actual cost of design, construction and installation of the above mentioned carbon steel waste storage tanks (including spare tanks and equipment) in accordance with the following formula for each processing unit of specification material in Material Categories 6 and 8, chemically processed:

(A1/165,556)(Y/X)

In the above mentioned formula, the following symbols shall have the following meaning:

Α1

The number of grams of aluminum contained in the cladding per processing unit, determined as provided above.

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