ML17276B527

Opines Re Nuclear Liability Site Description.Limited Site Description Would Apply Only During Period Fuel in Storage & Would Be Broadened to Encompass Contiguous WPPSS Property at Time of Fuel Loading

ML17276B527
Person / Time
Site:	Columbia
Issue date:	06/25/1982
From:	Deluca J WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:	Saltzman J NRC OFFICE OF STATE PROGRAMS (OSP)
References
NUDOCS 8206290085
Download: ML17276B527 (7)

Text

REGULATU INFORMATION DISTRIBUTION TEM (RIDS)

'AOCESSION NBR:8206?90085 DOC ~ DATEt 82/06/?5 NOTARIZED:

NO DOCKET FACIL'.50-397 NPPSS Nuclear Pro,ject~

Unit 2r Washington 'Public Powe 05000397 AUTH ~ NAME AUTHOR AFFILIA/ION DELUCAiJ F 0'ashington Public Power Supply System

'R BC IP ~ NAME RECIPIENT AFFILIATION SAL>TZMANiJ~

Assistant Director for State 8 Licensee Relations I'UBJECT:

Opines re nuclear liability site description

~ Limited site description would apply only during period fuel in storage 8 would be broadened to encompass conti,guous WPPS property at time of fuel loadinq, DISTRIBUTION CODE:

M001S COPIES 'RECEIVED:LTR,

ENCL, SIZE:

TITLE: Insurance; Indemniity/Endor sement Agr eements NOTES; RECIPIENT ID CODE/NAME 03 00 INTERNAL; CON RIGUEZ J EG L

01 EXTERNAL: LPDR NTIS ICOPIES LTTR ENCL 1

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1 NRC PDR 02 RECIPIENT ID CODE/NAME NRR/DL/ADL 07 SP COPIES LTTR ENCL TOTAL NUMBER OF COPIES REQUIRED:

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Washington Public Power Supply System P.O. Box 968 3000 George Washington Way Richland, Washington 99352 (509) 72-5000 June 25, 1982 Hr. Jerome Saltzman Assistant Director, State

& Licensee Relations Office of the State Programs U.S. Nuclear Regulatory Commission Washington, D.C.

20555

Subject:

WASHINGTON PUBLIC POWER SUPPLY SYSTEM PROJECT NO.

2 NUCLEAR:LIABILITYSITE DESCRIPTION

Dear Hr. Saltzman:

In recent months,. there has been an on-going dialogue concerning the site description involving'you, me, Ira Dinitz of your office, our broker Harsh

& McLennan, and American Nuclear Insurers.

The Supply System has asked that the Nuclear Liability Site Description implemented when fuel arrives at WNP-2 should have geographical boundaries that are the same as the present WNP-2 property boundaries.

This would emcompass only Unit 2 and not the adjacent Units 1 and 4.

These other two Units are physically separated by 3,000 feet and 4,000 feet, respectively, from WNP-2 and share no permanent, common systems.

A limited site description would apply only during the period of fuel in storage at WNP-2 and would be broadened to encompass all contiguous Supply System property at the time of fuel loading.

The reasons for maintaining a limited site description are:

1.

The Supply System operates under a project agreement with the Bonne-ville Power Administration (BPA) that specifically prohibits insurance from covering the three Units in Eastern Washington simultaneously.

To alter these agreements or receive an interpretation allowing the coverage to apply to all these Units may take some time in educating the necessary personnel and approving the necessary changes.

~on i

'20b290085 820b25

'DR ADOCK 05000397 J

PDR

Mr. Jerome Saltz Page 2

June 25, 1982 2.

The fate of WNP-4, as well as WNP-5 in Western Washington, is still very uncertain.

There is significant possibility this unit will be scrapped and all assets sold terminating the construction permit.

This unit will probably have its future determined shortly after the Northwest Power Planning Council completes its Regional Load Forecast due in April 1983.

Should the need for termination and liquidation of assets become necessary, the property may be razed and would probably be turned back over to the Department of, Energy and not included in the broad site description when Unit 2 became operational.

We have reviewed 10 CFR 140, Section 140.96, Appendix F

Indemnity Loca-

tions, and find the present wording of this section to be consistent with our request.

Specifically, Paragraph (a)(l) states,

"...'the geographical boundaries of the indemnity location will include the entire construction area of the nucl'ear power reactor, as determined by the Commission.

Such area will not b

i ih h

d y1 i

h h

i11b established at the time an operating license is issued for such additional nuclear power reactors..."

Paragraph (a)(2) further states that for

"..:an existing nuclear power reactor...,"

(which I read to mean an operat-ing reactor)"...the geographical boundaries...shall include the entire construction area of any additional'nuclear power reactor..."

Once again, our intent is to place all contiguous Supply System property within the geographical boundaries for the broader site description when WNP-2 becomes operational.

Mr. John guatrocchi, Vice-President, Liability Underwriting, American Nuclear Insurers, has-agreed to the above proposal and interpretation and will follow the decision of the Nuclear Regulatory Commission.

Should you have any questions, please let,.me know.

I look forward to your reply.

Very truly yours ph 0.

DeLuca, Manager Corporate Insurance JOD:md cc:

Raymond S. Sheldon, Marsh 5 McLennan Da'niel J. Ashburn, Marsh

& McLennan

0

'I~

PART l40 ~ FINANCIALPROTECTION REQUIREMENTS AND INDEMNITY-'lded, "amount of financial protection" means the amount speclded ln Item 2s and b, of the Attachment annexed hereto as modified by paragraph

0. Article II. with re-spect to common occurrences.

3. (a) "Nuclear incident" means any oc-currence including an extraordinary nuclear occurrence.

or series of occurrences st the location or ln the course of transportation causing bodily ln)ury. sickness, disease.

or death, or loss of or damage to property. or loss ot use of property. arising out of or resulting from the radioactive, toxic, explo-sive, or other hazardous properties of the radioactive material.

(b) hny occurrence, Including an extrsor-Insry nuclear occurrence. or series ot occur-ces causing bodily In)ury, sickness. disease cz or gath, or loss ot or damage to property. or u.loss bf use o! property. arising out of or el rcsultlhg from the r4dloactfve, toxic. ex-plosive, dq other hazardous properties of:

L The rgdlosctlve material discharged or dispersed the location over a period of days, weeks, nths or longer and also aris-ing out of suc properties of other material deancd u "the -sdioactlve material" ln any other agreement or agreements entered Into by the Cornmlss pn under subsection 170o or k of thc hct and so discharged or dispersed from "Ihe location 's deSned ln any such other agreement, o

ll. The radioactlvg material in the course ot transportation and<also arising out of such properties of other alaterial deaned ln any other agreement ante d into by the Com-mission pursuant to s bsectlon 170c or k of Item 2Llcensc number or numbers Item 3Location Item 4The Indemnity agreement desig-nated above. of which this Attachment is n part, Is effective ss of m., on the dsy of

~ 19 For the United Rates Nuclear Regulatory Commission.

By r the Po By arne icc e

harcczz IV

1. When the Commission determines th~~

thc United States will probably bc required to make indemnity payments under the pro-visions of this agreement, the Commlssl shall have the right to collaborate with e

licensee snd other persons lndcmnl6ed thc settlement and defense of any clalln a shall have the right (a) to require the lor ap-proval of the Conunlsslon for the ttlement or payment ot any claim or acti asserted against the licensee or other pars n indemni-fied for public llabi)ityor damag to property of persons legally I.'ablq for th nuclear in-cident which claim or action e licensee or the Conunlsslon may be r ulred to in-demnify under this agreeme t; snd (b) to Dsie thesda, hid., ihe --- dsy o 19 --.

5 140.96 Appendix FIndemnily loca-tions.

(s) Geographical bouruf aries o/ Indclnnity locations. (I) Ia every indemnity agreement between the Comlnlsslon and s

licensee which aifords indemnity protection for the preoperatlonal storage ot fuel at the site of s nuclear power reactor under construction, the geographical boundaries ot the indemnity location will include the entire construction ares of the nuclear power reactor, as deter-appear through the httor ey General of the United States on behalf of the licensee or other person Indemnliied ts'ke charge of such action snd settle or efend any such action. If thc settlement defense of any mined by the Commission. Such area will not necessarily be coextens'ivc with the ln demnity location which willbe established at ce the time an operating license ls issued for g such additional nuclear power reactors.

In ever lndemnlt s reement between ertsken by the hall. furnish all ecting a settle-ctlve material" and transportation shall on occurrence.

A I be deemed to con-cldent.

such action or claim ls u d Commission, the llceasce reasonable assistance ln e ment or asserting s defense

2. Neither this sgreeme g est therein nor claim there n

cv signed or transferred wl u

IZ ot the Commission.

hsrln.z The parties agree that th appropriate amendments o

to thc eztent that such aln quired pursuant to the ht of 1954, as amended, or lice or orders of thc Commlsslo (2) y y

8

< the Commission and s licensee which affords lndernnlty protection for an existing nuclear

@power reactor, the geographical boundaries ot the Indemnity location shall include the entire construction area ot sny additional nuclear power reactor as determined by the Commission, built as part of the same power station by the same licensee. Such area will not necessarily be coextensive with the in-demnity location which will be established at the time an operating license Is issued for such additional nuclear power reactors.

(3) This section ls cgective hisy I, 1973.

as to construction permits issued prior to hiarch 2, 1973, snd, as to construction per-mits Issued on or after hlarch 2. 1973, the provisions of this section will apply no later than such time ss s construction permit ls issued authorizing construction of any addi-tional nuclear power reactor.

the hct ss "thc radi which ls ln the course o bo deemed to be a co comalon occurrence sha stltute a single nuclear

~4-In thc course of tr Ioin the course of trans co United States, or ln th octation outside the Un cz other nation, lncludln rary storage incidental w active material to the I Lcstion provided that:

(s) With respect to radioactive material transportation Is not y

befntcrru tedbyth re nor any inter-der may be as t the approval asportation" means rtstlon within,the course of transpor-States and sny handling or tempo-hereto, of the rsdlo-atlon or from thc lo-will enter into this agreement dments are ra-mie Energy Act ses, regulations transportation ot the the locatloa, such predetermination to moval of the lnaterlal Asvrczz VI The licensee agrees to pa tp the Com-mhslon such fees as are eats(lished by ths P

from the transport g conveyance for any purpose other tha the contlnuatlon of such trsnspoxtation to hc location or temporary storage Inclden thereto; (b) The tra portatlon of the radioactive material fr the location shall be deemed to end whs the radioactive material ls re-moved~f the transporting conveyance for any other than the contlnustlon of ortstloa or temporary storage lnclden-thereto; (o) "In the course ot transportation" ss mused ln this agreement shall not include otransportstlon of the radioactive material cz to the location lfthe material ls also "ln the cucourse of transportation" from any other ec "location" ss deaned ln sny other agreement entered into by the Conunlsslon pursuant to subsection 170c or k of the hct.

6. person Indemniged" means the licensee and sny other person who may be liable for public liability.

th "public liability" means any legal lia-bility arising out of or resulting from a nu-clear incident, except (I)lclsims under State or Federal Workmen's Compensation Acts of emp)oyess o! persons Indemnided who are empleyed (a) st the laeatloa.or. It the nu-clesrdncident occurs ln the course of trans-portation o! tharadioavtlve material, on the tr~rtingcy~lc+ and (b) ln connection with,aha llcsnI~ ppssession, use or transfer of thy,rpdioscgyapaafprial; (2) claims aris-ing,jest,gf aa,~t 9f.chai"snd (3) claims for Iosp (cf,or,~y4tc,tech Pr 124s of use of (a)

Commission pursuant to stlons or orders of the Commhlioa Avcncxz VII The tenn af this agreement s

II com-mence as af the date sncl time sp ded ln Item 4 of the Attachment snd shall ter inate at the time of expiration of that II e

speclded In Item 2 ot the httaclunent, wh ls the last to expire: provided that. except as msy otherwlsc be provided ln applicable reg-ulations or orders of the Comcnlssion, the term of this agreement shall not terminate until all the radioactive material has been re-moved from the,location snd transportation of the radioactive material from ihc locsiion hss ended as dc!ised in subparagraph 4 (b), ~

hr!Icle I.

Termination of the terln of this agreement shall not affect any obligation of the licensee or any obligation of the Com-mission under this agreement with respect to any nuclear incident occurring during thc term of this agreement.

UNITED STATES NUCLEAR REGULATORY COMhiISSION Indemnity hgreement No. F g 140.107 hppcndlz C

Form of In-cIcmnity agrccmcnt with Iiccnsccs processing plutonium for use in plutonium processing snd fuel fab ricaiion plants and furnishing I u-Iicics as proof lancial protect on.

This Indemnity Agreement No...

is entered into by snd between g(hereinafter referred to as the "licensee")

<and the Urdted States Nuclear Regulatory Commission (herclnafter referred to as the ec "Commhcslon") pursuant to subsection 170c w of the AtomicEnergy hct of 1954, ss amended (hcrelnatter referred to as "the hct"), sad Section 201 ot the Energy Reorganization hct of 1974. as amended.

hxnczz I As used In this agreement:

1. "Byproduct material," "person," "source material," '"special nuclear material snd "extraordinary nuclear occurrence" shall have the meanings given them ln the Atomic Energy hct of 1954.

as amended, snd the regulations Issued by the Commission.

2. Except where otherwise specldcally pro-'ITSCllMZNT Item ILicensee Address Amended 33 FR I5998.

required to do lf the licensee were not such s state agency.

8.

The obligations of the Commission under this agreement 'xcept to the licensee for dam.

age to property of the licensee, shall not be cc affected by sny failure on the part of the g licensee to fulhII Its obligations under this <

agreement.

Bankruptcy or Insolvency of the u.

licensee or any other person Indemnided or c

ot the estate of the licensee or any other person indemnified shall not relieve the Com-mission of any of Its obligations hereunder.

August 1, 1980 140-22