{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where part_number = 140 sorted by section_id", "rows": [["10:10:2.0.1.1.21.1.134.1", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.1 Purpose.", "NRC", "", "", "[57 FR 18394, Apr. 30, 1992]", "The regulations in this part are issued to provide appropriate procedures and requirements for determining:\n\n(a) The financial protection required of licensees and for the indemnification and limitation of liability of certain licensees and other persons pursuant to section 170 of the Atomic Energy Act of 1954, as amended; and\n\n(b) The liability insurance required of uranium enrichment facility licensees pursuant to section 193 of the Atomic Energy Act of 1954, as amended."], ["10:10:2.0.1.1.21.1.134.10", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.9a Information collection requirements: OMB approval.", "NRC", "", "", "[62 FR 52190, Oct. 6, 1997, as amended at 85 FR 65664, Oct. 16, 2020]", "(a) The Nuclear Regulatory Commission has submitted the information collection requirements contained in this part to the Office of Management and Budget (OMB) for approval as required by the Paperwork Reduction Act (44 U.S.C. 3501  et seq. ). The NRC may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. OMB has approved the information collection requirements contained in this part under control number 3150-0039.\n\n(b) The approved information collection requirements contained in this part appear in \u00a7\u00a7 140.6, 140.7, 140.8, 140.13, 140.13a, 140.13b, 140.15, 140.17, 140.20, and 140.21."], ["10:10:2.0.1.1.21.1.134.2", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.2 Scope.", "NRC", "", "", "[25 FR 2944, Apr. 7, 1960, as amended at 33 FR 15998, Oct. 31, 1968; 42 FR 48, Jan. 3, 1977; 56 FR 64980, Dec. 13, 1991; 57 FR 18394, Apr. 30, 1992; 72 FR 49564, Aug. 28, 2007; 83 FR 30288, June 28, 2018]", "(a) The regulations in this part apply:\n\n(1) To each person who is an applicant for or holder of a license issued under 10 CFR parts 50, 52, or 54 to operate a nuclear reactor, and\n\n(2) With respect to an extraordinary nuclear occurrence, to each person who is an applicant for or holder of a license to operate a production facility or a utilization facility (including an operating license issued under part 50 of this chapter and a combined license under part 52 of this chapter), and to other persons indemnified with respect to the involved facilities.\n\n(3) To each person licensed pursuant to part 70 of this chapter to possess and use plutonium in a plutonium processing and fuel fabrication plant.\n\n(4) To each person licensed pursuant to parts 40 and 70 of this chapter to construct and operate a uranium enrichment facility.\n\n(b)(1) Subpart B of this part does not apply to any person subject to subparts C or D of this part. Subpart C of this part applies only to persons found by the Commission to be Federal agencies. Subpart D of this part applies only to persons found by the Commission to be nonprofit educational institutions with respect to licenses and applications for licenses for the conduct of educational activities.\n\n(2) Any applicant or licensee subject to this part may apply for a finding that such applicant or licensee is subject to the provisions of subparts C or D of this part. The application should state the grounds for the requested finding. Any application for a finding pursuant to this paragraph may be included in an application for a license.\n\n(c) Subpart E of this part sets forth the procedures the Commission will follow and the criteria the Commission will apply in making a determination as to whether or not there has been an extraordinary nuclear occurrence. The form of nuclear energy liability policy for facilities (appendix A) and the forms of indemnity agreements with licensees (appendices B, C, D, and E) include provisions requiring the waiver of certain defenses with respect to an extraordinary nuclear occurrence. These provisions and subpart E are incorporated in this part pursuant to Pub. L. 89-645 (80 Stat. 891). They provide additional assurance of prompt compensation under available indemnity and underlying financial protection for injury or damage resulting from the hazardous properties of radioactive materials or radiation, and they in no way detract from the protection to the public otherwise provided under this part."], ["10:10:2.0.1.1.21.1.134.3", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.3 Definitions.", "NRC", "", "", "[83 FR 30288, June 28, 2018, as amended at 89 FR 106253, Dec. 30, 2024]", "As used in this part:\n\nAct  means the Atomic Energy Act of 1954 (68 Stat. 919) including any amendments thereto.\n\nCommission  means the Nuclear Regulatory Commission or its duly authorized representatives.\n\nDepartment  means the Department of Energy established by the Department of Energy Organization Act (Pub. L. 95-91, 91 Stat. 565, 42 U.S.C. 7101  et seq. ), to the extent that the Department, or its duly authorized representatives, exercises functions formerly vested in the U.S. Atomic Energy Commission, its Chairman, members, officers and components and transferred to the U.S. Energy Research and Development Administration and to the Administrator thereof pursuant to sections 104 (b), (c) and (d) of the Energy Reorganization Act of 1974 (Pub. L. 93-438, 88 Stat. 1233 at 1237, 42 U.S.C. 5814) and retransferred to the Secretary of Energy pursuant to section 301(a) of the Department of Energy Organization Act (Pub. L. 95-91, 91 Stat. 565 at 577-578, 42 U.S.C. 7151).\n\nFederal agency  means a Government agency such that any liability in tort based on the activities of such agency would be satisfied by funds appropriated by the Congress and paid out of the United States Treasury.\n\nFinancial protection  means the ability to respond in damages for public liability and to meet the cost of investigating and defending claims and settling suits for such damages.\n\nGovernment agency  means any executive department, commission, independent establishment, corporation, wholly or partly owned by the United States of America which is an instrumentality of the United States, or any board, bureau, division, service, office, officer, authority, administration, or other establishment in the executive branch of the Government.\n\nNuclear reactor  means any apparatus, other than an atomic weapon, designed or used to sustain nuclear fission in a self-supporting chain reaction.\n\nPerson  means:\n\n(1) Any individual, corporation, partnership, firm, association, trust, estate, public or private institution, group, Government agency other than the Commission or the Department, except that the Department shall be considered a person within the meaning of the regulations in this part to the extent that its facilities and activities are subject to the licensing and related regulatory authority of the Commission pursuant to section 202 of the Energy Reorganization Act of 1974 (88 Stat. 1244), any State or any political subdivision thereof, or any political entity within a State, any foreign government or nation or any political subdivision of any such government or nation, or other entity; and\n\n(2) Any legal successor, representative, agent, or agency of the foregoing.\n\nPlutonium processing and fuel fabrication plant  means a plant in which the following operations or activities are conducted:\n\n(1) Operations for manufacture of reactor fuel containing plutonium, where the license or licenses authorize the possession of either five or more kilograms of plutonium, excluding that contained in sealed sources and welded or otherwise sealed unirradiated or irradiated fuel rods, at the site of the plant or authorize the processing of one or more kilograms of plutonium, excluding that contained in sealed sources and welded or otherwise sealed unirradiated or irradiated fuel rods, at the plant, including any of the following processes:\n\n(i) Preparation of fuel material;\n\n(ii) Formation of fuel material into desired shapes;\n\n(iii) Application of protective cladding;\n\n(iv) Recovery of scrap material; and\n\n(v) Storage associated with such operations; or\n\n(2) Research and development activities involving any of the operations described in paragraph (1) of this definition, except for research and development activities where the operator is licensed to possess or use plutonium in amounts less than those specified in paragraph (1).\n\nSource material  means source material as defined in the regulations contained in part 40 of this chapter.\n\nSpecial nuclear material  means:\n\n(1) Plutonium, uranium 233, 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\n\n(2) Any material artificially enriched by any of the foregoing, but does not include source material.\n\nTesting facility  is defined at 10 CFR 50.2.\n\nUranium enrichment facility  means:\n\n(1) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235, except laboratory scale facilities designed or used for experimental or analytical purposes only; or\n\n(2) Any equipment or device, or important component part especially designed for such equipment or device, capable of separating the isotopes of uranium or enriching uranium in the isotope 235."], ["10:10:2.0.1.1.21.1.134.4", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.4 Interpretations.", "NRC", "", "", "[25 FR 2944, Apr. 7, 1960, as amended at 90 FR 55634, Dec. 3, 2025]", "Except as specifically authorized by the Commission in writing, no interpretations of the meaning of the regulations in this part by any officer or employee of the Commission other than a written interpretation by the General Counsel will be recognized to be binding upon the Commission. This section shall cease to have effect on January 8, 2027, unless the NRC determines that the cessation deadline should be extended to a date not more than 5 years in the future after offering the public an opportunity to provide input on the costs and benefits of this section and considering that input. The NRC will publish a document in the  Federal Register  announcing its determination and revising or removing this section accordingly."], ["10:10:2.0.1.1.21.1.134.5", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.5 Communications.", "NRC", "", "", "[73 FR 5726, Jan. 31, 2008, as amended at 74 FR 62686, Dec. 1, 2009; 79 FR 75742, Dec. 19, 2014; 80 FR 74982, Dec. 1, 2015; 84 FR 65646, Nov. 29, 2019]", "Except where otherwise specified, all communications and reports concerning the regulations in this part and applications filed under them should be sent by mail addressed to: ATTN: Document Control Desk, Director, Office of Nuclear Reactor Regulation, or Director, Office of Nuclear Material Safety and Safeguards, as appropriate, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; by hand delivery to the NRC's offices at 11555 Rockville Pike, Rockville, Maryland; or, where practicable, by electronic submission, for example, via Electronic Information Exchange, or CD-ROM. Electronic submissions must be made in a manner that enables the NRC to receive, read, authenticate, distribute, and archive the submission, and process and retrieve it a single page at a time. Detailed guidance on making electronic submissions can be obtained by visiting the NRC's Web site at  http://www.nrc.gov/site-help/e-submittals.html;  by e-mail to  MSHD.Resource@nrc.gov;  or by writing the Office of the Chief Information Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. The guidance discusses, among other topics, the formats the NRC can accept, the use of electronic signatures, and the treatment of nonpublic information."], ["10:10:2.0.1.1.21.1.134.6", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.6 Reports.", "NRC", "", "", "[25 FR 2944, Apr. 7, 1960, as amended at 41 FR 16447, Apr. 19, 1976; 42 FR 49, Jan. 3, 1977; 68 FR 58824, Oct. 10, 2003; 73 FR 5726, Jan. 31, 2008; 79 FR 75742, Dec. 19, 2014; 84 FR 65646, Nov. 29, 2019]", "(a) In the event of bodily injury or property damage arising out of or in connection with the possession or use of the radioactive material at the location or in the course of transportation, or in the event any claim is made therefor, written notice containing particulars sufficient to identify the licensee and reasonably obtainable information with respect to the time, place, and circumstances thereof, or to the nature of the claim, shall be furnished by or for the licensee to the Director, Office of Nuclear Reactor Regulation, or Director, Office of Nuclear Material Safety and Safeguards, as appropriate, using an appropriate method listed in \u00a7 140.5, but in any case as promptly as practicable. The terms the radioactive material, the location, and in the course of transportation as used in this section shall have the meanings defined in the applicable indemnity agreement between the licensee and the Commission.\n\n(b) The Commission may require any person subject to this part to keep such records and furnish such reports to the Commission as the Commission deems necessary for the administration of the regulations in this part."], ["10:10:2.0.1.1.21.1.134.7", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.7 Fees.", "NRC", "", "", "[25 FR 2944, Apr. 7, 1960, as amended at 42 FR 49, Jan. 3, 1977; 63 FR 31851, June 10, 1998; 89 FR 51811, June 20, 2024]", "(a)(1) Each reactor licensee shall pay a fee to the Commission based on the following schedule:\n\n(i) For indemnification from $500 million to $400 million inclusive, a fee of $30 per year per thousand kilowatts of thermal capacity authorized in the license;\n\n(ii) For indemnification from $399 million to $300 million inclusive, a fee of $24 per year per thousand kilowatts of thermal capacity authorized in the license;\n\n(iii) For indemnification from $299 million to $200 million inclusive, a fee of $18 per year per thousand kilowatts of thermal capacity authorized in the license;\n\n(iv) For indemnification from $199 million to $100 million inclusive, a fee of $12 per year per thousand kilowatts of thermal capacity authorized in the license; and\n\n(v) For indemnification from $99 million to $1 million inclusive, a fee of $6 per year per thousand kilowatts of thermal capacity authorized in the license.\n\n(2) No fee will be less than $100 per annum for any nuclear reactor. This fee is for the period beginning with the date on which the applicable indemnity agreement is effective. The various levels of indemnity fees are set forth in the schedule in this paragraph. The amount of indemnification for determining indemnity fees will be computed by subtracting from the statutory limit of liability the amount of financial protection required of the licensee. In the case of licensees subject to the provision of \u00a7 140.11(a)(4), this total amount will be the amount, as determined by the Commission, of the financial protection available to licensees at the close of the calendar year preceding the one in which the fee becomes due. For those instances in which a certified financial statement is provided as a guarantee of payment of deferred premiums in accordance with \u00a7 140.21(e), a fee of $1,000 or the indemnity fee, whichever is greater, is required.\n\n(b) Where a licensee manufactures a number of nuclear reactors each having a power level not exceeding 3\n 1/3  megawatts, for sale to others and operates them at the licensee's location temporarily prior to delivery, the licensee shall report to the Commission the maximum number of such reactors to be operated at that location at any one time. In such cases, the fee shall equal $100 multiplied by the number of reactors reported by the licensee. In the event the number of reactors operated at any one time exceed the estimate so reported, the licensee shall report the additional number of reactors to the Commission and additional charges will be made. If experience shows that less than the estimated number of reactors have been operated, appropriate adjustment in subsequent bills will be made by the Commission.\n\n(c) Each person licensed to possess and use plutonium in a plutonium processing and fuel fabrication plant shall pay to the Commission a fee of $5,000 per year for indemnification. This fee is for the period beginning with the date on which the applicable indemnity agreement is effective.\n\n(d) Indemnity fee payments are to made payable to the U.S. Nuclear Regulatory Commission. The payments are to be made in U.S. funds using the electronic payment methods accepted at  www.Pay.gov.  Federal agencies may also make payments by Intra-Governmental Payment and Collection (IPAC). Specific instructions for making payments may be obtained by contacting the Office of the Chief Financial Officer at 301-415-7554."], ["10:10:2.0.1.1.21.1.134.8", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.8 Specific exemptions.", "NRC", "", "", "[34 FR 19546, Dec. 11, 1969]", "The Commission may, upon application of any interested person or upon its own initiative, grant such exemptions from the requirements of the regulations in this part as it determines are authorized by law and are otherwise in the public interest."], ["10:10:2.0.1.1.21.1.134.9", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "A", "Subpart A\u2014General Provisions", "", "\u00a7 140.9 Modification of indemnity agreements.", "NRC", "", "", "[48 FR 1030, Jan. 10, 1983]", "The Commission will publish in the  Federal Register  a notice of its intent to enter into an indemnity agreement, or agreement amending an indemnity agreement, which contains provisions different from the form of the applicable indemnity agreement set forth in the appendices to this part, as such appendices may be amended from time to time."], ["10:10:2.0.1.1.21.2.134.1", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.10 Scope.", "NRC", "", "", "[72 FR 49564, Aug. 28, 2007]", "This subpart applies to each person who is an applicant for or holder of a license issued under 10 CFR parts 50 or 54 to operate a nuclear reactor, or is the applicant for or holder of a combined license issued under parts 52 or 54 of this chapter, except licenses held by persons found by the Commission to be Federal agencies or nonprofit educational institutions licensed to conduct educational activities. This subpart also applies to persons licensed to possess and use plutonium in a plutonium processing and fuel fabrication plant."], ["10:10:2.0.1.1.21.2.134.10", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.17 Special provisions applicable to licensees furnishing financial protection in whole or in part in the form of liability insurance.", "NRC", "", "", "", "In any case where a licensee undertakes to maintain financial protection in the form of liability insurance for all or part of the financial protection required by this part,\n\n(a) The Commission may require proof that the organization or organizations which have issued such policies are legally authorized to issue them and do business in the United States and have clear ability to meet their obligations; and\n\n(b) At least 30 days prior to the termination of any such policy, the licensee shall notify the Commission of the renewal of such policy or shall file other proof of financial protection."], ["10:10:2.0.1.1.21.2.134.11", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.18 Special provisions applicable to licensees furnishing financial protection in whole or in part in the form of adequate resources.", "NRC", "", "", "[42 FR 43385, Aug. 29, 1977]", "In any case where a licensee undertakes to maintain financial protection in the form specified in \u00a7 140.14(a)(2) for all or part of the financial protection required by this part, the Commission may require such licensee to file with the Commission such financial information as the Commission determines to be appropriate for the purpose of determining whether the licensee is maintaining financial protection as required by this part."], ["10:10:2.0.1.1.21.2.134.12", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.19 Failure by licensees to maintain financial protection.", "NRC", "", "", "", "In any case where the Commission finds that the financial protection maintained by a licensee is not adequate to meet the requirements of this part, the Commission may suspend or revoke the license or may issue such order with respect to licensed activities as the Commission determines to be appropriate or necessary in order to carry out the provisions of this part and of section 170 of the Act."], ["10:10:2.0.1.1.21.2.134.13", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.20 Indemnity agreements and liens.", "NRC", "", "", "[42 FR 49, Jan. 3, 1977, as amended at 72 FR 49565, Aug. 28, 2007]", "(a) The Commission will execute and issue agreements of indemnity pursuant to the regulations in this part or such other regulations as may be issued by the Commission. Such agreements, as to any licensee, shall be effective on:\n\n(1)(i) The effective date of the license (issued pursuant to part 50 of this chapter) authorizing the licensee to operate the nuclear reactor involved; or\n\n(ii) The date that the Commission makes the finding under \u00a7 52.103(g) of this chapter; or\n\n(iii) The effective date of the license (issued under part 70 of this chapter) authorizing the licensee to possess and store special nuclear material at the site of the nuclear reactor for use as fuel in operation of the nuclear reactor after issuance of an operating license for the reactor, whichever is earlier. No such agreement, however, shall be effective prior to September 26, 1957; or\n\n(2) August 1, 1977 or the effective date of the license (issued pursuant to part 70 of this chapter) authorizing the licensee to possess and use plutonium at the site of the plutonium processing and fuel fabrication plant for processing in that plant, whichever date is later.\n\n(b) If the licensee fails to pay assessed deferred premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and to recover the amount of such premiums from the licensee.\n\n(c) The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the retrospective premium by the insurance pools, that they will not pay the assessment. Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings. Subsequent submission of financial statements by such licensees may be requested by the Commission, as required.\n\n(d) If premiums are paid by the Commission as provided in paragraph (b) of this section, payment by the Commission shall create a lien in the amount paid in favor of the United States upon all property and rights to property, whether real or personal, belonging to such licensee. The lien shall arise at the time payment is made by the Commission and shall continue until the liability for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable. The Commission will issue a certificate of release of any such lien if it finds that the liability for the amount has been fully satisfied or has become legally unenforceable.\n\n(e) If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days. The Commission may take such further action as is necessary if reimbursement is not made within the 30-day suspension period including but not limited to termination of the operating license.\n\n(f)(1)(i) The general form of indemnity agreement to be entered into by the Commission with reactor licensees who furnish financial protection in the form of the nuclear energy liability insurance policy set forth in appendix A is contained in \u00a7 140.92, appendix B. The general form of indemnity agreement to be entered into by the Commission with reactor licensees who furnish financial protection in the form specified in \u00a7 140.14(a)(2) is set forth in \u00a7 140.93, appendix C.\n\n(ii) The general form of indemnity agreement to be entered into by the Commission with persons licensed to possess and use plutonium in a plutonium processing and fuel fabrication plant and who furnish financial protection in the form of the nuclear energy liability insurance policy set forth in appendix A \n 2 \n   is contained in \u00a7 140.107, appendix G. The general form of indemnity agreement to be entered into by the Commission with such licensees who furnish financial protection in the form specified in \u00a7 140.14(a)(2) is set forth in \u00a7 140.108, appendix H.\n\n2  The form of the nuclear energy liability insurance policy for these licensees will be the subject of pertinent endorsements after discussion with the insurance pools.\n\n(2) The form of indemnity agreement to be entered into by the Commission with any particular licensee under this subpart shall contain such modifications of the applicable form in \u00a7\u00a7 140.92, 140.93, 140.107 and 140.108, appendices A, B, C, G and H, as are provided for in applicable licenses, regulations or orders of the Commission.\n\n(3) Each licensee who has executed an indemnity agreement under this subpart shall enter into such agreements amending such indemnity agreement as are required by applicable licenses, regulations, or orders of the Commission."], ["10:10:2.0.1.1.21.2.134.14", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.21 Licensee guarantees of payment of deferred premiums.", "NRC", "", "", "[42 FR 50, Jan. 3, 1977, as amended at 71 FR 15012, Mar. 27, 2006; 74 FR 62686, Dec. 1, 2009; 79 FR 38769, July 9, 2014]", "Each licensee required to have and maintain financial protection for each nuclear reactor as determined in \u00a7 140.11(a)(4) shall at the issuance of the license and annually, on the anniversary of the date on which the indemnity agreement is effective, provide evidence to the Commission that it maintains one of the following types of guarantee of payment of deferred premium in the amount specified in \u00a7 140.11(a)(4) for each reactor it is licensed to operate:\n\n(a) Surety bond,\n\n(b) Letter of credit,\n\n(c) Revolving credit/term loan arrangement,\n\n(d) Maintenance of escrow deposits of government securities,\n\n(e) Annual certified financial statement showing either that a cash flow ( i.e. , cash available to a company after all operating expenses, taxes, interest charges, and dividends have been paid) can be generated and would be available for payment of retrospective premiums within three (3) months after submission of the statement, or a cash reserve or a combination of cash flow and cash reserve, or\n\n(f) Such other type of guarantee as may be approved by the Commission."], ["10:10:2.0.1.1.21.2.134.15", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.22 Commission guarantee and reimbursement agreements.", "NRC", "", "", "[42 FR 50, Jan. 3, 1977, as amended at 83 FR 30289, June 28, 2018]", "Each licensee required to have and maintain financial protection for each nuclear reactor as determined in \u00a7 140.11(a)(4) shall execute an indemnity agreement with the Commission that provides for the payment by the Commission of deferred premiums not paid by the licensee and reimbursement of the Commission by the licensee. The general forms of agreement to be entered into by the Commission and licensees are set forth in \u00a7 140.92, appendix B and \u00a7 140.93, appendix C."], ["10:10:2.0.1.1.21.2.134.2", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.11 Amounts of financial protection for certain reactors.", "NRC", "", "", "[25 FR 2944, Apr. 7, 1960, as amended at 89 FR 106253, Dec. 30, 2024]", "(a) Each licensee is required to have and maintain financial protection:\n\n(1) In the amount of $1,000,000 for each nuclear reactor he is authorized to operate at a thermal power level not exceeding ten kilowatts;\n\n(2) In the amount of $1,500,000 for each nuclear reactor he is authorized to operate at a thermal power level in excess of ten kilowatts but not in excess of one megawatt;\n\n(3) In the amount of $2,500,000 for each nuclear reactor other than a testing facility or a reactor licensed under section 104b of the Act which he is authorized to operate at a thermal power level exceeding one megawatt but not in excess of ten megawatts; and\n\n(4) In an amount equal to the sum of $500,000,000 and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing for deferred premium charges equal to the pro rata share of the aggregate public liability claims and costs, excluding costs payment of which is not authorized by section 170o.(1)(D) of the Act, in excess of that covered by primary financial protection) for each nuclear reactor which is licensed to operate and which is designed for the production of electrical energy and has a rated capacity of 100,000 electrical kilowatts or more: Provided, however, that under such a plan for deferred premium charges for each nuclear reactor that is licensed to operate, no more than $158,026,000 with respect to any nuclear incident (plus any surcharge assessed under subsection 170o.(1)(E) of the Act) and no more than $24,714,000 per incident within one calendar year shall be charged.  Except that,  where a person is authorized to operate a combination of 2 or more nuclear reactors located at a single site, each of which has a rated capacity of 100,000 or more electrical kilowatts but not more than 300,000 electrical kilowatts with a combined rated capacity of not more than 1,300,000 electrical kilowatts, each such combination of reactors shall be considered to be a single nuclear reactor for the sole purpose of assessing the applicable financial protection required under this section.\n\n(b) In any case where a person is authorized under parts 50, 52, or 54 of this chapter to operate two or more nuclear reactors at the same location, the total primary financial protection required of the licensee for all such reactors is the highest amount which would otherwise be required for any one of those reactors; provided, that such primary financial protection covers all reactors at the location."], ["10:10:2.0.1.1.21.2.134.3", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.12 Amount of financial protection required for other reactors.", "NRC", "", "", "[25 FR 2944, Apr. 7, 1960, as amended at 26 FR 1397, Feb. 17, 1961; 32 FR 8125, June 7, 1967; 72 FR 49565, Aug. 28, 2007]", "(a) Each licensee is required to have and maintain financial protection for each nuclear reactor for which the amount of financial protection is not determined in \u00a7 140.11, in an amount determined pursuant to the formula and other provisions of this section:  Provided,  That in no event shall the amount of financial protection required for any nuclear reactor under this section be less than $4,500,000 or more than $74,000,000.\n\n(b)(1) The formula is:\n\nx = B times P\n\n(2) In the formula:\n\nx = Amount of financial protection in dollars. \n \n B = Base amount of financial protection. \n \n P = Population factor.\n\nx = Amount of financial protection in dollars.\n\nB = Base amount of financial protection.\n\nP = Population factor.\n\n(3) The base amount of financial protection is equal to $185 times the maximum power level, expressed in thermal kilowatts, as authorized by the applicable license.\n\n(4) The population factor (P) shall be determined as follows:\n\n(i)  Step 1.  The area to be considered includes all minor civil divisions (as shown in the 1950 Census of Population, Bureau of the Census, or later data available from the Bureau) which are wholly or partly within a circle with the facility at its center and having a radius in miles equal to the square root of the maximum authorized power level in thermal megawatts.\n\n(ii)  Step 2.  Identify all minor civil divisions according to the same census which are in whole or in part within the circle determined in Step 1. Determine the population of each such minor civil division (according to the same census or later data available from the Bureau of the Census). For each minor civil division, divide its population by the square of the estimated distance to the nearest mile from the reactor to the geographic center of the minor civil division:  Provided,  That no such distance shall be deemed to be less than one mile. If the sum of the quotients thus obtained for all minor civil divisions wholly or partly within the circle is 1,000 or less, the population factor is 1. If the sum of these quotients is more than 1,000 but not more than 3,000, the population factor is 1.2. If the sum of these quotients is more than 3,000 but not more than 5,000, the population factor is 1.4. If the sum of these quotients is more than 5,000 but not more than 7,000, the population factor is 1.6. If the sum of these quotients is more than 7,000 but not more than 9,000, the population factor is 1.8. If the sum of these quotients is more than 9,000 the population factor is 2.0.\n\n(c) In any case where a person is authorized under parts 50, 52, or 54 of this chapter to operate two or more nuclear reactors at the same location, the total financial protection required of the licensee for all such reactors is the highest amount which would otherwise be required for any one of those reactors; provided, that such financial protection covers all reactors at the location.\n\n(d) Except in cases where the amount of financial protection calculated under this section is a multiple of $100,000, amounts determined pursuant to this section shall be adjusted to the next highest multiple of $100,000."], ["10:10:2.0.1.1.21.2.134.4", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.13 Amount of financial protection required of certain holders of construction permits and combined licenses under 10 CFR part 52.", "NRC", "", "", "[72 FR 49565, Aug. 28, 2007]", "Each holder of a part 50 construction permit, or a holder of a combined license under part 52 of this chapter before the date that the Commission had made the finding under 10 CFR 52.103(g), who also holds a license under part 70 of this chapter authorizing ownership, possession and storage only of special nuclear material at the site of the nuclear reactor for use as fuel in operation of the nuclear reactor after issuance of either an operating license under 10 CFR part 50 or combined license under 10 CFR part 52, shall, during the period before issuance of a license authorizing operation under 10 CFR part 50, or the period before the Commission makes the finding under \u00a7 52.103(g) of this chapter, as applicable, have and maintain financial protection in the amount of $1,000,000. Proof of financial protection shall be filed with the Commission in the manner specified in \u00a7 140.15 of this chapter before issuance of the license under part 70 of this chapter."], ["10:10:2.0.1.1.21.2.134.5", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.13a Amount of financial protection required for plutonium processing and fuel fabrication plants.", "NRC", "", "", "[42 FR 49, Jan. 3, 1977, as amended at 42 FR 20140, Apr. 18, 1977; 44 FR 20632, Apr. 6, 1979; 54 FR 24158, June 6, 1989; 83 FR 30289, June 28, 2018]", "(a) Each holder of a license issued pursuant to part 70 of this chapter to possess and use plutonium at a plutonium processing and fuel fabrication plant is required to have and maintain financial protection in the form specified in \u00a7 140.14 in the amount of $200,000,000. Proof of financial protection shall be filed with the Commission in the manner specified in \u00a7 140.15 prior to issuance of the license under part 70 of this chapter.\n\n(b) In any case, when a person is authorized pursuant to part 70 of this chapter to possess and use plutonium at two or more plutonium processing and fuel fabrication plants at the same location, the total financial protection required of the licensee for all such plants is the highest amount which would otherwise be required for any one of those plants:  Provided, however,  That such financial protection covers all such plants at the location."], ["10:10:2.0.1.1.21.2.134.6", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.13b Amount of liability insurance required for uranium enrichment facilities.", "NRC", "", "", "[57 FR 18394, Apr. 30, 1992]", "Each holder of a license issued under Parts 40 or 70 of this chapter for a uranium enrichment facility that involves the use of source material or special nuclear material is required to have and maintain liability insurance. The liability insurance must be the type and in the amounts the Commission considers appropriate to cover liability claims arising out of any occurrence within the United States that causes, within or outside the United States, bodily injury, sickness, disease, death, 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 chemical compounds containing source material or special nuclear material. Proof of liability insurance must be filed with the Commission as required by \u00a7 140.15 before issuance of a license for a uranium enrichment facility under parts 40 and 70 of this chapter."], ["10:10:2.0.1.1.21.2.134.7", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.14 Types of financial protection.", "NRC", "", "", "[25 FR 2944, Apr. 7, 1960, as amended at 42 FR 49, Jan. 3, 1977]", "(a) The amounts of financial protection required under this part may be furnished and maintained in the form of:\n\n(1) An effective policy of liability insurance from private sources; or\n\n(2) Adequate resources to provide the financial protection required by \u00a7\u00a7 140.11, 140.12; 140.13 or \u00a7 140.13a; or\n\n(3) Such other type of financial protection as the Commission may approve; or\n\n(4) Any combination of the foregoing.\n\n(b) In any case where the Commission has approved proof of financial protection filed by a licensee the licensee shall not substitute one type of financial protection for another type without first obtaining the written approval of the Commission."], ["10:10:2.0.1.1.21.2.134.8", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.15 Proof of financial protection.", "NRC", "", "", "[25 FR 2944, Apr. 7, 1960, as amended at 33 FR 15999, Oct. 31, 1968; 49 FR 11148, Mar. 26, 1984]", "(a)(1) Licensees who maintain financial protection in whole or in part in the form of liability insurance shall provide proof of financial protection that consists of a copy of the liability policy (or policies) together with a certificate by the insurers issuing the policy stating that the copy is a true copy of the currently effective policy issued to the licensee. The licensee may furnish proof of financial protection in the form of the nuclear energy liability insurance policy set forth in \u00a7 140.91 or in any other form acceptable to the Commission.\n\n(2) Such proof may alternatively, consist of a copy of the declarations page of a nuclear energy liability policy in the form set forth in \u00a7 140.91 and issued to the licensee:  Provided,  That such policy form has been filed by the insurers with the Commission. The declarations page shall be accompanied by a certificate by the insurers stating that said copy is a true copy of the declarations page of a currently effective policy and identifying the policy (including endorsements) by reference to the policy form which has been filed by them with the Commission.\n\n(3) The Commission will accept any other form of nuclear energy liability insurance as proof of financial protection if it determines that the provisions of such insurance provide financial protection under the requirements of the Commission's regulations and the Act.\n\n(b) Proof of financial protection in the case of licensees who maintain financial protection in whole or in part in the form specified in \u00a7 140.14(a)(2) shall consist of a showing that the licensee clearly has adequate resources to provide the financial protection required under this part. For this purpose the applicant or licensee shall file with the Commission:\n\n(1) Annual financial statements for the three complete calendar or fiscal years preceding the date of filing, together with an opinion thereon by a certified public accountant. The financial statements shall include balance sheets, operating statements and such supporting schedules as may be needed for interpretation of the balance sheets and operating statements.\n\n(2) If the most recent statements required under paragraph (b)(1) of this section have been prepared as of a date more than 90 days prior to the date of filing, similar financial statements, prepared as of a date not more than 90 days prior to the date of filing, should be included. These statements need not be reviewed by a certified public accountant.\n\n(c) The Commission may require any licensee to file with the Commission such additional proof of financial protection or other financial information as the Commission determines to be appropriate for the purpose of determining whether the licensee is maintaining financial protection as required under this part.\n\n(d) Proof of financial protection shall be subject to the approval of the Commission.\n\n(e) The licensee shall promptly notify the Commission of any material change in proof of financial protection or in other financial information filed with the Commission under this part."], ["10:10:2.0.1.1.21.2.134.9", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "B", "Subpart B\u2014Provisions Applicable Only to Applicants and Licensees Other Than Federal Agencies and Nonprofit Educational Institutions", "", "\u00a7 140.16 Commission review of proof of financial protection.", "NRC", "", "", "", "The Commission will review proof of financial protection filed by any licensee or applicant for license. If the Commission finds that the licensee or applicant for license is maintaining financial protection in accordance with the requirements of this part, approval of the financial protection will be evidenced by incorporation of appropriate provision in the license."], ["10:10:2.0.1.1.21.3.134.1", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "C", "Subpart C\u2014Provisions Applicable Only to Federal Agencies", "", "\u00a7 140.51 Scope.", "NRC", "", "", "", "This subpart applies only to persons found by the Commission to be Federal agencies, which have applied for or are holders of licenses issued pursuant to part 50 of this chapter authorizing operation of nuclear reactors.\n\nFederal agencies are not required to furnish financial protection."], ["10:10:2.0.1.1.21.3.134.2", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "C", "Subpart C\u2014Provisions Applicable Only to Federal Agencies", "", "\u00a7 140.52 Indemnity agreements.", "NRC", "", "", "[27 FR 2885, Mar. 29, 1962, as amended at 33 FR 15999, Oct. 31, 1968]", "(a) The Commission will execute and issue agreements of indemnity with each Federal agency subject to this subpart pursuant to the regulations in this part or such other regulations as may be issued by the Commission. Such agreements, as to any licensee, shall be effective on:\n\n(1) The effective date of the license (issued pursuant to part 50 of this chapter) authorizing the licensee to operate the nuclear reactor involved; or\n\n(2) The effective date of the license (issued pursuant to part 70 of this chapter) authorizing the licensee to possess and store special nuclear material at the site of the nuclear reactor for use as fuel in operation of the nuclear reactor after issuance of an operating license for the reactor, whichever is earlier. No such agreement, however, shall be effective prior to September 26, 1957.\n\n(b)(1) The general form of indemnity agreement to be entered into with licensees subject to this subpart is contained in \u00a7 140.94 appendix D.\n\n(2) The form of indemnity agreement to be entered into by the Commission with any particular licensee under this subpart shall contain such modifications of the form in \u00a7 140.94, as are provided for in applicable licenses, regulations or orders of the Commission.\n\n(3) Each licensee who has executed an indemnity agreement under this subpart shall enter into such agreements amending such indemnity agreement as are required by applicable licenses, regulations or orders of the Commission."], ["10:10:2.0.1.1.21.4.134.1", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "D", "Subpart D\u2014Provisions Applicable Only to Nonprofit Educational Institutions", "", "\u00a7 140.71 Scope.", "NRC", "", "", "", "This subpart applies only to applicants for and holders of licenses issued for the conduct of educational activities to persons found by the Commission to be nonprofit educational institutions, except that this subpart does not apply to Federal agencies.\n\nFinancial protection is not required with respect to licenses issued for the conduct of educational activities to persons found by the Commission to be non-profit educational institutions."], ["10:10:2.0.1.1.21.4.134.2", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "D", "Subpart D\u2014Provisions Applicable Only to Nonprofit Educational Institutions", "", "\u00a7 140.72 Indemnity agreements.", "NRC", "", "", "[27 FR 2885, Mar. 29, 1962, as amended at 33 FR 15999, Oct. 31, 1968]", "(a) The Commission will execute and issue agreements of indemnity with each non-profit educational institution subject to this subpart pursuant to the regulations in this part or such other regulations as may be issued by the Commission. Such agreements, as to any licensee, shall be effective on:\n\n(1) The effective date of the license (issued pursuant to part 50 of this chapter) authorizing the licensee to operate the nuclear reactor involved; or\n\n(2) The effective date of the license (issued pursuant to part 70 of this chapter) authorizing the licensee to possess and store special nuclear material at the site of the nuclear reactor for use as fuel in operation of the nuclear reactor after issuance of an operating license for the reactor, whichever is earlier. No such agreement, however, shall be effective prior to September 26, 1957.\n\n(b)(1) The general form of indemnity agreement to be entered into with licensees subject to this subpart is contained in \u00a7 140.95 appendix E.\n\n(2) The form of indemnity agreement to be entered into by the Commission with any particular licensee under this subpart shall contain such modifications of the form in \u00a7 140.95 appendix E, as are provided for in applicable licenses, regulations or orders of the Commission.\n\n(3) Each licensee who has executed an indemnity agreement under this subpart shall enter into such agreements amending such indemnity agreement as are required by applicable licenses, regulations or orders of the Commission."], ["10:10:2.0.1.1.21.5.134.1", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "E", "Subpart E\u2014Extraordinary Nuclear Occurrences", "", "\u00a7 140.81 Scope and purpose.", "NRC", "", "", "[33 FR 15999, Oct. 31, 1968, as amended at 40 FR 8793, Mar. 3, 1975; 72 FR 49565, Aug. 28, 2007]", "(a)  Scope.  This subpart applies to applicants for and holders of licenses authorizing operation of production facilities and utilization facilities, including combined licenses under part 52 of this chapter, and to other persons indemnified with respect to such facilities.\n\n(b)  Purpose.  One purpose of this subpart is to set forth the criteria which the Commission proposes to follow in order to determine whether there has been an \u201cextraordinary nuclear occurrence.\u201d The other purpose is to establish the conditions of the waivers of defenses proposed for incorporation in indemnity agreements and insurance policies or contracts furnished as proof of financial protection.\n\n(1) The system is to come into effect only where the discharge or dispersal constitutes a substantial amount of source, special nuclear or byproduct material, or has caused substantial radiation levels offsite. The various limits in present NRC regulations are not appropriate for direct application in the determination of an \u201cextraordinary nuclear occurrence,\u201d for they were arrived at with other purposes in mind, and those limits have been set at a level which is conservatively arrived at by incorporating a significant safety factor. Thus, a discharge or dispersal which exceeds the limits in NRC regulations, or in license conditions, although possible cause for concern, is not one which would be expected to cause substantial injury or damage unless it exceeds by some significant multiple the appropriate regulatory limit. Accordingly, in arriving at the values in the criteria to be deemed \u201csubstantial\u201d it is more appropriate to adopt values separate from NRC health and safety regulations, and, of course, the selection of these values will not in any way affect such regulations. A substantial discharge, for purposes of the criteria, represents a perturbation of the environment which is clearly above that which could be anticipated from the conduct of normal activities. The criteria are intended solely for the purposes of administration of the Commission's statutory responsibilities under Pub. L. 89-645, and are not intended to indicate a level of discharge or dispersal at which damage to persons or property necessarily will occur, or a level at which damage is likely to occur, or even a level at which some type of protective action is indicated. It should be clearly understood that the criteria in no way establish or indicate that there is a specific threshold of exposure at which biological damage from radiation will take place. It cannot be emphasized too frequently that the levels set to be used as criteria for the first part of the determination, that is, the criteria for amounts offsite or radiation levels offsite which are substantial, are not meant to indicate that, because such amounts or levels are determined to be substantial for purposes of administration, they are \u201csubstantial\u201d in terms of their propensity for causing injury or damage.\n\n(2) It is the purpose of the second part of the determination that the Commission decide whether there have in fact been or will probably be substantial damages to persons offsite or property offsite. The criteria for substantial damages were formulated, and the numerical values selected, on a wholly different basis from that on which the criteria used for the first part of the determination with respect to substantial discharge were derived. The only interrelation between the values selected for the discharge criteria and the damage criteria is that the discharge values are set so low that it is extremely unlikely the damage criteria could be satisfied unless the discharge values have been exceeded.\n\n(3) The first part of the test is designed so that the Commission can assure itself that something exceptional has occurred; that something untoward and unexpected has in fact taken place and that this event is of sufficient significance to raise the possibility that some damage to persons or property offsite has resulted or may result. If there appears to be no damage, the waivers will not apply because the Commission will be unable, under the second part of the test, to make a determination that \u201csubstantial damages\u201d have resulted or will probably result. If damages have resulted or will probably result, they could vary from de minimis to serious, and the waivers will not apply until the damages, both actual and probable, are determined to be \u201csubstantial\u201d within the second part of the test.\n\n(4) The presence or absence of an extraordinary nuclear occurrence determination does not concomitantly determine whether or not a particular claimant will recover on his claim. In effect, it is intended primarily to determine whether certain potential obstacles to recovery are to be removed from the route the claimant would ordinarily follow to seek compensation for his injury or damage. If there has not been an extraordinary nuclear occurrence determination, the claimant must proceed (in the absence of settlement) with a tort action subject to whatever issues must be met, and whatever defenses are available to the defendant, under the law applicable in the relevant jurisdiction. If there has been an extraordinary nuclear occurrence determination, the claimant must still proceed (in the absence of settlement) with a tort action, but the claimant's burden is substantially eased by the elimination of certain issues which may be involved and certain defenses which may be available to the defendant. In either case the defendant may defend with respect to such of the following matters as are in issue in any given claim: The nature of the claimant's alleged damages, the causal relationship between the event and the alleged damages, and the amount of the alleged damages."], ["10:10:2.0.1.1.21.5.134.2", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "E", "Subpart E\u2014Extraordinary Nuclear Occurrences", "", "\u00a7 140.82 Procedures.", "NRC", "", "", "[33 FR 15999, Oct. 31, 1968, as amended at 40 FR 8794, Mar. 3, 1975]", "(a) The Commission may initiate, on its own motion, the making of a determination as to whether or not there has been an extraordinary nuclear occurrence. In the event the Commission does not so initiate the making of a determination, any affected person, or any licensee or person with whom an indemnity agreement is executed or a person providing financial protection may petition the Commission for a determination of whether or not there has been an extraordinary nuclear occurrence. If the Commission does not have, or does not expect to have, within 7 days after it has received notification of an alleged event, enough information available to make a determination that there has been an extraordinary nuclear occurrence, the Commission will publish a notice in the  Federal Register  setting forth the date and place of the alleged event and requesting any persons having knowledge thereof to submit their information to the Commission.\n\n(b) When a procedure is initiated under paragraph (a) of this section, the Commission will designate members of the principal staff to begin immediately to assemble the relevant information and prepare a report on which the Commission can make its determination."], ["10:10:2.0.1.1.21.5.134.3", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "E", "Subpart E\u2014Extraordinary Nuclear Occurrences", "", "\u00a7 140.83 Determination of extraordinary nuclear occurrence.", "NRC", "", "", "[33 FR 15999, Oct. 31, 1968]", "If the Commission determines that both of the criteria set forth in \u00a7\u00a7 140.84 and 140.85 have been met, it will make the determination that there has been an extraordinary nuclear occurrence. If the Commission publishes a notice in the  Federal Register  in accordance with \u00a7 140.82(a) and does not make a determination within 90 days thereafter that there has been an extraordinary nuclear occurrence, the alleged event will be deemed not to be an extraordinary nuclear occurrence. The time for the making of a determination may be extended by the Commission by notice published in the  Federal Register."], ["10:10:2.0.1.1.21.5.134.4", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "E", "Subpart E\u2014Extraordinary Nuclear Occurrences", "", "\u00a7 140.84 Criterion I\u2014Substantial discharge of radioactive material or substantial radiation levels offsite.", "NRC", "", "", "[33 FR 15999, Oct. 31, 1968, as amended at 40 FR 8794, Mar. 3, 1975]", "The Commission will determine that there has been a substantial discharge or dispersal of radioactive material offsite, or that there have been substantial levels of radiation offsite, when, as a result of an event comprised of one or more related happenings, radioactive material is released from its intended place of confinement or radiation levels occur offsite and either of the following findings are also made:\n\n(a) The Commission finds that one or more persons offsite were, could have been, or might be exposed to radiation or to radioactive material, resulting in a dose or in a projected dose in excess of one of the levels in the following table:\n\nTotal Projected Radiation Doses\n\nExposures from the following types of sources of radiation shall be included:\n\n(1) Radiation from sources external to the body;\n\n(2) Radioactive material that may be taken into the body from its occurrence in air or water; and\n\n(3) Radioactive material that may be taken into the body from its occurrence in food or on terrestrial surfaces.\n\n(b) The Commission finds that:\n\n(1) Surface contamination of at least a total of any 100 square meters of offsite property has occurred as the result of a release of radioactive material from a production or utilization facility and such contamination is characterized by levels of radiation in excess of one of the values listed in Column 1 or Column 2 of the following table, or\n\n(2) Surface contamination of any offsite property has occurred as the result of a release of radioactive material in the course of transportation and such contamination is characterized by levels of radiation in excess of one of the values listed in column 2 of the following table:\n\nTotal Surface Contamination Levels \n 1\n\n1  The maximum levels (above background), observed or projected, 8 or more hours after initial deposition.\n\n2  Measured through not more than 7 milligrams per square centimeter of total absorber."], ["10:10:2.0.1.1.21.5.134.5", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "E", "Subpart E\u2014Extraordinary Nuclear Occurrences", "", "\u00a7 140.85 Criterion II\u2014Substantial damages to persons offsite or property offsite.", "NRC", "", "", "[33 FR 15999, Oct. 31, 1968]", "(a) After the Commission has determined that an event has satisfied Criterion I, the Commission will determine that the event has resulted or will probably result in substantial damages to persons offsite or property offsite if any of the following findings are made:\n\n(1) The Commission finds that such event has resulted in the death or hospitalization, within 30 days of the event, of five or more people located offsite showing objective clinical evidence of physical injury from exposure to the radioactive, toxic, explosive, or other hazardous properties of source, special nuclear, or byproduct material; or\n\n(2) The Commission finds that $2,500,000 or more of damage offsite has been or will probably be sustained by any one person, or $5 million or more of such damage in the aggregate has been or will probably be sustained, as the result of such event; or\n\n(3) The Commission finds that $5,000 or more of damage offsite has been or will probably be sustained by each of 50 or more persons, provided that $1 million or more of such damage in the aggregate has been or will probably be sustained, as the result of such event.\n\n(b) As used in paragraphs (a) (2) and (3) of this section, \u201cdamage\u201d shall be that arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of source, special nuclear, or byproduct material, and shall be based upon estimates of one or more of the following:\n\n(1) Total cost necessary to put affected property back into use,\n\n(2) Loss of use of affected property,\n\n(3) Value of affected property where not practical to restore to use,\n\n(4) Financial loss resulting from protective actions appropriate to reduce or avoid exposure to radiation or to radioactive materials."], ["10:10:2.0.1.1.21.6.134.1", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.87 Violations.", "NRC", "", "", "[57 FR 55080, Nov. 24, 1992]", "(a) The Commission may obtain an injunction or other court order to prevent a violation of the provisions of\u2014\n\n(1) The Atomic Energy Act of 1954, as amended;\n\n(2) Title II of the Energy Reorganization Act of 1974, as amended; or\n\n(3) A regulation or order issued pursuant to those Acts.\n\n(b) The Commission may obtain a court order for the payment of a civil penalty imposed under section 234 of the Atomic Energy Act:\n\n(1) For violations of\u2014\n\n(i) Sections 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109 of the Atomic Energy Act of 1954, as amended;\n\n(ii) Section 206 of the Energy Reorganization Act;\n\n(iii) Any rule, regulation, or order issued pursuant to the sections specified in paragraph (b)(1)(i) of this section;\n\n(iv) Any term, condition, or limitation of any license issued under the sections specified in paragraph (b)(1)(i) of this section.\n\n(2) For any violation for which a license may be revoked under section 186 of the Atomic Energy Act of 1954, as amended."], ["10:10:2.0.1.1.21.6.134.10", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.108 Appendix H\u2014Form of indemnity agreement with licensees possessing plutonium for use in plutonium processing and fuel fabrication plants and furnishing proof of financial protection in the form of the licensee's resources.", "NRC", "", "", "[42 FR 53, Jan. 3, 1977, as amended at 42 FR 20142, Apr. 18, 1977; 42 FR 23501, May 9, 1977; 44 FR 20633, Apr. 6, 1979; 44 FR 24045, Apr. 24, 1979; 45 FR 37410, June 3, 1980; 49 FR 11152, Mar. 26, 1984; 54 FR 24161, June 6, 1989]", "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. \n \n Article I \n \n As used in this agreement: \n \n 1.  Byproduct material, person, source material, special nuclear material, precautionary evacuation,  and  extraordinary nuclear occurrence  shall have the meaning given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission. \n \n 2.  Amount of financial protection  means the amount specified in Item 2 or the Attachment annexed hereto. \n \n 3.  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. \n \n (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 \n \n 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 material  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 \n \n 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. \n \n 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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n \n (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: \n \n (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: \n \n (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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act. \n \n 5.  Person indemnified  means the licensee and any other person who may be liable for public liability. \n \n 6.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), 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; and (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. \n \n 7.  The location  means the location described in Item 4 of the Attachment hereto. \n \n 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 fuel fabrication plant or plants and is subject to the license or licenses designated in the Attachment hereto, or (2) is produced as the result of the operation of said plant or plants or (b) any source special nuclear, or byproduct material which is waste or contamination from material described in paragraph 8(a). The words  used or to be used  and  processed or to be processed  in this paragraph cover source, special nuclear or byproduct material which is  in the course of transportation  as used in the agreement or is received at the plant for use or processing in the plant but which is, in fact, for any reason, not so used or processed. \n \n 9.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States. \n \n Article II \n \n 1. The licensee undertakes and agrees to indemnify and hold harmless all persons indemnified, as their interest may appear, from public liability. \n \n 2. With respect to damage caused by a nuclear incident to property of any person legally liable for the incident, the licensee 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 licensee under this paragraph 2 does not apply with respect to: \n \n (a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material; \n \n (b) Property damage due to neglect of the person indemnified to use all reasonable means to save and preserve the property after knowledge of a nuclear incident; \n \n (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; and \n \n (d) The radioactive material. \n \n 3. Any obligations of the licensee under paragraphs 1 and 2 of this Article, and subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident.\n \n 4. The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 5. Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided, that the licensee is then entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders. \n \n 6. With respect to any common occurrence, if the sum of the amount of financial protection established under this agreement and the amount of financial protection established under all other applicable agreements exceeds an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection, the obligations of the licensee described in paragraph 3 of this Article shall not exceed a greater proportion of an amount equal to the sum of $200,000,000 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. As used in this paragraph, and in Article III,  other applicable agreements  means each other agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act in which agreement the nuclear incident is defined as a  common occurrence.  \n \n 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 or the United States to fulfill any or all of its obligations under this agreement. Bankruptcy or insolvency 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. \n \n Article III \n \n 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. \n \n 2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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: \n \n (a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material; \n \n (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; \n \n (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; \n \n (d) The radioactive material. \n \n 3. [Reserved]\n \n 4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed the amount of financial protection.\n \n (b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed $200,000,000. \n \n 5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 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. \n \n 7. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified, or of the estate of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder. \n \n Article IV\n \n 1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other persons indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting defense.\n \n 2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission. \n \n Article V\n \n The parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission. \n \n Article VI\n \n The licensee agrees to pay the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission. \n \n Article VII\n \n The term of this agreement shall commence as of the date and time specified in Item 5 of the Attachment and shall terminate at the time of expiration of that license specified in Item 3 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 4(b), Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement. \n \n United States Nuclear Regulatory Commission \n \n attachment \n \n Indemnity Agreement No. ________________\n \n Item 1\u2014Licensee __________________________\n \n Item 2\u2014Amount of financial protection\u2014\n \n Item 3\u2014License number or numbers______\n \n Item 4\u2014Location __________________________\n \n Item 5\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of 12:01 a.m., on the \n \n ______________ day of ________________ 19____. \n \n Dated at Bethesda, MD, the ____________ day of __________ 19____. \n \n For the U.S. Nuclear Regulatory Commission. \n \n   For \n \n   By\n\nThis 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.\n\nAs used in this agreement:\n\n1.  Byproduct material, person, source material, special nuclear material, precautionary evacuation,  and  extraordinary nuclear occurrence  shall have the meaning given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n\n2.  Amount of financial protection  means the amount specified in Item 2 or the Attachment annexed hereto.\n\n3.  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.\n\n(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\n\ni. 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 material  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\n\nii. 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.\n\n4.  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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n\n(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:\n\n(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:\n\n(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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act.\n\n5.  Person indemnified  means the licensee and any other person who may be liable for public liability.\n\n6.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), 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; and (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.\n\n7.  The location  means the location described in Item 4 of the Attachment hereto.\n\n8.  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 fuel fabrication plant or plants and is subject to the license or licenses designated in the Attachment hereto, or (2) is produced as the result of the operation of said plant or plants or (b) any source special nuclear, or byproduct material which is waste or contamination from material described in paragraph 8(a). The words  used or to be used  and  processed or to be processed  in this paragraph cover source, special nuclear or byproduct material which is  in the course of transportation  as used in the agreement or is received at the plant for use or processing in the plant but which is, in fact, for any reason, not so used or processed.\n\n9.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States.\n\n1. The licensee undertakes and agrees to indemnify and hold harmless all persons indemnified, as their interest may appear, from public liability.\n\n2. With respect to damage caused by a nuclear incident to property of any person legally liable for the incident, the licensee 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 licensee under this paragraph 2 does not apply with respect to:\n\n(a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material;\n\n(b) Property damage due to neglect of the person indemnified to use all reasonable means to save and preserve the property after knowledge of a nuclear incident;\n\n(c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; and\n\n(d) The radioactive material.\n\n3. Any obligations of the licensee under paragraphs 1 and 2 of this Article, and subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident.\n\n4. The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n5. Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided, that the licensee is then entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders.\n\n6. With respect to any common occurrence, if the sum of the amount of financial protection established under this agreement and the amount of financial protection established under all other applicable agreements exceeds an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection, the obligations of the licensee described in paragraph 3 of this Article shall not exceed a greater proportion of an amount equal to the sum of $200,000,000 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. As used in this paragraph, and in Article III,  other applicable agreements  means each other agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act in which agreement the nuclear incident is defined as a  common occurrence.\n\n7. 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 or the United States to fulfill any or all of its obligations under this agreement. Bankruptcy or insolvency 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.\n\n1. The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.\n\n2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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:\n\n(a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material;\n\n(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;\n\n(c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation;\n\n(d) The radioactive material.\n\n3. [Reserved]\n\n4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed the amount of financial protection.\n\n(b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed $200,000,000.\n\n5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n6. 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.\n\n7. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified, or of the estate of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder.\n\n1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other persons indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting defense.\n\n2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission.\n\nThe parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission.\n\nThe licensee agrees to pay the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission.\n\nThe term of this agreement shall commence as of the date and time specified in Item 5 of the Attachment and shall terminate at the time of expiration of that license specified in Item 3 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 4(b), Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement.\n\nIndemnity Agreement No. ________________\n\nItem 1\u2014Licensee __________________________\n\nItem 2\u2014Amount of financial protection\u2014\n\nItem 3\u2014License number or numbers______\n\nItem 4\u2014Location __________________________\n\nItem 5\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of 12:01 a.m., on the\n\n______________ day of ________________ 19____.\n\nDated at Bethesda, MD, the ____________ day of __________ 19____."], ["10:10:2.0.1.1.21.6.134.11", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.109 Appendix I.", "NRC", "", "", "[49 FR 11153, Mar. 26, 1984]", "Nuclear Energy Liability Insurance Association\n \n master policy no. ____\n \n Nuclear Energy Liability Insurance\n \n (Secondary Financial Protection)\n \n Named Insured: Each person or organization designated in Item 1 of a  certificate. \n \n Policy Period: Beginning on the first day of August, 1977, and continuing to the effective date and time of the cancellation or other termination of this policy, eastern standard time.\n \n Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' contingent liability, if any, pursuant to Conditions 2, 3, and 4.\n \n Date of Issue \n \n Authorized Representative\n \n In consideration of the payment of the annual premium, in reliance upon the statements in the  certificates  and subject to the limits of liability, conditions and other terms of this Master Policy, the undersigned members of Nuclear Energy Liability Insurance Association (hereinafter called the  companies ), each for itself, severally and not jointly, and in the respective proportions herein set forth, and the  insureds  named in the  certificates,  agree as follows:\n \n Insuring Agreements\n \n i. nuclear energy liability insurance\n \n (Secondary Financial Protection)\n \n To pay on behalf of or to the  insured  or to the  insured's  workers' compensation carrier all sums payable as  excess losses  to which this Master Policy applies.\n \n ii. definitions\n \n Bodily injury  means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.\n \n Certificate  means a Certificate of Insurance, including Declarations and Bond for Payment of Retrospective Premiums, issued to be a part of this Master Policy.\n \n Common nuclear occurrence  means any occurrence or series of occurrences causing  bodily injury  or  property damage  arising out of the radioactive, toxic, explosive, or other hazardous properties of  nuclear material \n \n (a) Discharged or dispersed from a nuclear reactor described in Item 3 of a  certificate  over a period of days, weeks, months, or longer, or\n \n (b) Discharged or dispersed from a nuclear reactor described in Item 3 of a  certificate  over a period of days, weeks, months or longer and also arising out of such properties of  nuclear material  so discharged or dispersed from one or more other nuclear reactors described in Item 3 of other  certificates,  or\n \n (c) In the course of transportation for which protection is afforded (or would be afforded but for exhaustion of its limit of liability) under the  primary financial protection  described in Item 4 of a  certificate  and also arising out of such properties of nuclear material in the course of transportation for which protection is afforded (or would be afforded but for exhaustion of its limit of liability) under the  primary financial protection  described in Item 4 of one or more other  certificates. \n \n Damages and claim expenses  includes sums estimated by the companies to be payable under this policy and payments made by the companies under this Master Policy:\n \n (a) In settlement of claims and in satisfaction of judgments against the  insureds  for damages because of  bodily injury  or  property damage; \n \n (b) For (1) costs taxed against an  insured  in any suit against the  insured  seeking damages payable under the terms of this Master Policy and interest on any judgment therein, (2) premiums on appeal bonds and bonds to release attachments in any such suit and (3) reasonable expenses, other than loss of earnings, incurred by the  insured  at the companies' request;\n \n (c) For expenses incurred in the investigation, negotiation, settlement and defense of any claim or suit including, but not limited to, the cost of such services by salaried employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, inspection and appraisal of property, examination, X-ray or autopsy or medical expenses of any kind;\n \n (d) For expenses incurred by the companies in investigating a  nuclear incident  or in minimizing its effects;\n \n (e) For all other expenses of the companies in fulfilling their obligations under this Master Policy, provided that such expenses are reasonable and necessary.\n \n Excess losses  means all  damages and claim expenses \n \n (a) Because of  bodily injury  or  property damage  to which a  certificate  applies, and\n \n (b) Which are excess of all sums paid or payable as estimated by the companies under all applicable  primary financial protection. \n \n Extraordinary nuclear occurrence  has the meaning given it in the Atomic Energy Act of 1954, or in any law amendatory thereof.\n \n Insured  means any person or organization identified in Item 1 or 2 of a  certificate. \n \n Nuclear incident  means\n \n (a) An  extraordinary nuclear occurrence,  or\n \n (b) A  common nuclear occurrence,  or if neither of these,\n \n (c) An occurrence or series of occurrences, including continuous or repeated exposure to substantially the same general conditions, causing  bodily injury  or  property damage  arising out of the radioactive, toxic, explosive, or other hazardous properties of  nuclear material. \n \n Nuclear material  means  source material, special nuclear material  or  byproduct material. \n \n Primary financial protection  means the insurance policies or other contracts identified in Item 4 of a  certificate  and includes any amendment thereto which is consented to by the companies pursuant to Condition 6 of this Master Policy.\n \n Property damage  means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of such contamination.\n \n Source material, special nuclear material,  and  byproduct material  have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof.\n \n iii. application of policy\n \n Insurance is provided by this Master Policy only through a  certificate.  No insurance is afforded with respect to  bodily injury  or  property damage  caused prior to August 1, 1977 by a  nuclear incident. \n \n Conditions\n \n 1. annual premium\n \n The named insureds designated in a  certificate  shall pay to the companies the annual premium for each calendar year or part thereof.\n \n Such annual premium shall be determined by the companies and stated in a written notice mailed to the first named insured shown in Item 1 of a  certificate,  and shall be due and payable as stated in such notice.\n \n 2. retrospective premium\n \n The named insureds designated in a  certificate  shall pay to the companies retrospective premium in the event of  excess losses  due to  bodily injury  or  property damage  caused during their  certificate  period by a  nuclear incident  arising out of or in connection with a nuclear reactor described in Item 3 of the  certificate  or in Item 3 of any other  certificate.  The amount of retrospective premium-due under each  certificate  shall be determined by multiplying such  excess losses  by the ratio of the maximum retrospective premium payable with respect to the  nuclear incident  under the  certificate  to the total of the maximum retrospective premiums payable with respect to the  nuclear incident  under all such  certificates. \n \n If any portion of the  bodily injury  or  property damage  to which this Master Policy applies is caused during any portion of a  certificate  period by a  nuclear incident,  the retrospective premium the named insureds designated in such  certificate  are obligated to pay shall be determined as if all  bodily injury  or  property damage  to which this Master Policy applies caused by the  nuclear incident  had been caused during the  certificate  period of such  certificate. \n \n The maximum retrospective premium that the named insureds designated in a  certificate  shall pay to the companies for all  excess losses  arising out of any one  nuclear incident  is the amount stated in Item 7 of their  certificate. \n \n In the event of two more  nuclear incidents,  the maximum amount of retrospective premium that shall be due from and payable by the named insureds in one calendar year shall not exceed twice the amount stated in Item 7 of their  certificate.  Any amount in excess thereof shall be paid in subsequent calendar years as billed by the companies.\n \n In addition, an allowance for applicable premium taxes shall be determined by the companies and paid to them by the named insureds at the time retrospective premiums are due and payable.\n \n After a  nuclear incident  resulting in  excess losses,  the companies shall mail to the first named insured designated in Item 1 of a  certificate  written notice of the retrospective premium and allowance for premium taxes then due under such  certificate.  Such notice shall also constitute notice to all other named insureds designated in such  certificate.  The named insureds shall pay directly to the Nuclear Energy Liability Insurance Association the retrospective premium and allowance for premium taxes stated in the notice. The notice shall specify a date no earlier than 60 days after mailing by which time payment is to be received by the Nuclear Energy Liability Insurance Association.\n \n The companies shall at least annually review their estimate of  excess losses  arising out of the  nuclear incident  and shall adjust the retrospective premium and allowance for premium taxes accordingly. If the amount due from the named insureds is increased, written notice shall be mailed to the first named insured in accordance with the foregoing paragraph; if deceased the companies shall return the excess to the first named insured.\n \n The obligation of the named insureds to pay retrospective premium and the allowance for premium taxes for  excess losses  arising out of a  nuclear incident  shall continue until the named insureds have paid the maximum retrospective premium stated in Item 7 of their  certificate  plus allowance for premium taxes.\n \n The companies shall send to the Nuclear Regulatory Commission summaries of their estimates of  excess losses  arising out of the  nuclear incident  and their computations of retrospective premium and the allowance for premium taxes due.\n \n All retrospective premium (but not the allowance for premium taxes) received by the companies is to be held by the companies separate from the companies' other assets and is to be used by the companies only for the purpose of paying  excess losses.  Any investment income received by the companies from such retrospective premium shall accrue to the benefit of the named insureds. This paragraph shall not apply to any retrospective premium received by the companies as reimbursement for any funds expended pursuant to Condition 4. \n \n No commission will be paid with respect to retrospective premium and allowance for premium taxes.\n \n 3. limit of liability\n \n Regardless of the number of\n \n (a) Persons or organizations who are  insureds  under this Master Policy, or\n \n (b) Claims made and suits brought against any and all  insureds,  or \n \n (c) Policies or contracts of  primary financial protection  or  certificates  which apply to the  nuclear incident,  or\n \n (d) Years this Master Policy and any  certificate  shall continue in force,\n \n The total liability of the companies under this Master Policy for all  excess losses  arising out of any  nuclear incident  shall not exceed the amount of retrospective premium actually received by the companies pursuant to Condition 2 with respect to such  nuclear incident  plus the companies' contingent liability, if any, as determined by Condition 4. Reimbursement of the companies for funds expended pursuant to Condition 4 shall not operate to increase the total liability of the companies.\n \n 4. contingent liability of the companies\n \n The companies have a contingent liability under this Master Policy for payment of  excess losses  but only if, and to the extent that, the retrospective premium due under one or more  certificates  is not paid. In the event of any such failure to pay retrospective premiums, the companies' obligations under this Condition 4 are limited as follows:\n \n Regardless of the number of  nuclear incidents  which cause  bodily injury  or  property damage  to which this Master Policy applies, the number of years this Master Policy is in force, the number of  certificates  issued or in effect, or the number of annual premiums paid or payable.\n \n (a) The total contingent liability of the companies for all  excess losses  arising out of two or more  nuclear incidents  shall not exceed $46,500,000;\n \n (b) Subject to the above provision (a), the total contingent liability of the companies for all  excess losses  arising out of any one  nuclear incident  shall not exceed $23,250,000;\n \n (c) Subject to the above provisions (a) and (b), the maximum amount to be paid by the companies in any one calendar year because of contingent liability for  excess losses  shall not exceed $23,250,000.\n \n If a named insured designated in a  certificate  shall become insolvent or be adjudged bankrupt, the companies' obligation under this Condition 4 shall not apply to the failure of any named insured designated in such  certificate  to pay retrospective premium with respect to  excess losses  because of  bodily injury  or  property damage  caused after the date of such insolvency or bankruptcy.\n \n 5. investigation, defense or settlement of claims or suits\n \n Subject to the provisions of any written agreement between the companies and the Nuclear Regulatory Commission, the companies shall defend any claim or suit alleging  bodily injury  or  property damage  caused by a  nuclear incident  and seeking damages which are payable under this Master Policy, and may make such investigation and settlement of any claim or suit as they deem expedient. In no event shall the companies be obligated to pay any claim or judgment or to defend any claim or suit after the companies have paid the amount of retrospective premium actually received for  excess losses  arising out of the  nuclear incident  plus the amount of their contingent liability, if any.\n \n 6. primary financial protection\n \n Regardless of the number of policies or contracts of  primary financial protection  applicable to a  nuclear incident,  the limit of liability of all such policies or contracts shall be deemed to be exhausted when the sums paid under all such policies or contracts are equal to the lesser of (1) the sum of the limits of liability available under all such primary financial protection or (2) one hundred forty million dollars.\n \n The named insured designated in a  certificate  shall maintain in full effect during the currency of such  certificate  the  primary financial protection  described therein, except for any reduction of the limit of liability of such  primary financial protection  solely as the result of sums paid thereunder. Failure of the named insureds to comply with the foregoing shall not invalidate this Master Policy, but in the event of such failure the companies shall be liable only to the extent that they would have been liable and the named insureds complied therewith.\n \n In the event that the limit of liability of the  primary financial protection  is reduced, such names insureds shall immediately inform the companies thereof and make all reasonable efforts to reinstate such limit.\n \n Upon the companies' request the named insureds shall provide the companies with a certified copy of any policy or other contract of  primary financial protection.  No amendment of the  primary financial protection  shall increase, extend or broaden the insurance provided by this Master Policy unless the companies agree to the amendment by an endorsement issued to form a part of this Master Policy.\n \n 7. interest to be paid by named insured on retrospective premium and allowance for premium taxes in default\n \n If retrospective premium or allowance for premium taxes is not paid when due by the named insureds designated in Item 1 of a  certificate,  such named insureds shall be obligated to pay, in addition to the amount in default, interest thereon during the period of default. Such interest shall be computed at an annual rate equal to the sum of (a) three percent plus (b) a rate of interest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the date that the retrospective premium and allowance for premium taxes were due. The annual rate of interest shall be adjusted monthly during the period of default to reflect any revisions of Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the first business day of each such month.\n \n The interest so received shall be used to pay to the companies interest at the annual rate described above for any funds the companies have paid pursuant to Condition 4. Any balance remaining shall accrue to the benefit of named insureds not in default as if it were investment income on retrospective premium.\n \n 8. notice of nuclear incident, claim or suit\n \n In the event of  bodily injury  or  property damage  to which this Master Policy applies or of a  nuclear incident  which may give rise to claims therefor, written notice containing particulars sufficient to identify the  insured  and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the  insured  to Nuclear Energy Liability Insurance Association or the companies as soon as practicable. If claim is made or suit is brought against the  insured,  the  insured  shall immediately forward to Nuclear Energy Liability Insurance Association or the companies every demand, notice, summons or other process received by or on behalf of the  insured. \n \n 9. assistance and cooperation of the insured\n \n The  insured  shall cooperate with the companies and, upon the companies' request, attend hearings and trials and assist in making settlements, in securing and giving evidence, in obtaining the attendance of witnesses and in the conduct of any legal proceedings in connection with the subject matter of this insurance. The  insured  shall not, except at the  insured's  own cost, make any payment, assume any obligation or incur any expense.\n \n 10. action against companies\n \n No action shall lie against the companies or any of them unless, as a condition precedent thereto, the  insured  shall have fully complied with all the terms of this Master Policy, nor until the amount of the  insured's  obligation to pay shall have been finally determined either by judgment against the  insured  after actual trial or by written agreement of the  insured,  the claimant and the companies.\n \n Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this Master Policy to the extent of the insurance afforded by this Master Policy. No person or organization shall have any right under this Master Policy to join the companies or any of them as parties to any action against the  insured  to determine the  insured's  liability, nor shall the companies or any of them be impleaded by the  insured  or the  insured's  legal representative. Except as provided in Condition 4, bankruptcy or insolvency of the  insured  or of the  insured's  estate shall not relieve the companies of any of their obligations hereunder.\n \n 11. subrogation\n \n In the event of any payment under this Master Policy, the companies may participate with the  insured  and any underlying insurer in the exercise of all the  insured's  rights of recovery against any person or organization liable therefor. Prior to knowledge of  bodiliy injury  or  property damage  to which this Master Policy applies or of a  nuclear incident  which may give rise to claims therefor, the  insured  may waive in writing any right of recovery against any person or organization. After such knowledge, the  insured  shall not waive or otherwise prejudice any such right of recovery but shall do everything necessary to secure such rights. Recoveries shall be applied first to reimburse any person or organization (including the  insured)  that may have paid any amount with respect to liability in excess of the limit of the companies' liability hereunder; then to reimburse the companies up to the amount paid hereunder; and lastly to reimburse anyone entitiled to claim the residue, if any. A different apportionment maybe made by agreement signed by all parties affected.\n \n Reasonable expenses incurred in the exercise of rights of recovery shall be apportioned in the ratio of the respective losses for which recovery is sought. The companies shall, after deducting all of their expenses in securing recovery, apply the net amount of recoveries made by the companies as a credit in determining the amount of  excess  losses.\n \n 12. other insurance\n \n This insurance shall be excess insurance over  primary financial protection. \n \n This insurance is concurrent with insurance afforded by a Master Policy\u2014Nuclear Energy Liability Insurance (Secondary Financial Protection) issued to the named insured by Mutual Atomic Energy Liability Underwriters, hereinafter called  concurrent insurance.  The companies shall not be liable under this Master Policy for a greater proportion of  excess losses  than the applicable limit of liability described in Condition 3 bears to the sum of (a) such limit plus (b) the applicable limit of liability of such concurrent insurance.\n \n If the  insured  has other valid and collectible insurance (other than  primary financial protection  or concurrent insurance) applicable to  excess losses  covered by this Master Policy, the insurance afforded by this Master Policy shall be primary insurance under such other insurance.\n \n 13. changes\n \n Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this Master Policy or estop the companies from asserting any right under the terms of this Master Policy; nor shall the terms of this Master Policy be waived or changed, except by endorsement executed by Nuclear Energy Liability Insurance Association on behalf of the companies and issued to form a part of this Master Policy.\n \n 14. assignment\n \n Assignment of interest by the named insured shall not bind the companies until their consent is endorsed hereon; if, however, the named insured shall die or be declared bankrupt or insolvent, this Master Policy shall cover such named insured's legal representative, receiver or trustee as an  insured  under this Master Policy, but only with respect to such legal representative's, receiver's or trustee's liability as such, and then only provided written notice of the legal representative's, receiver's or trustee's appointment as such is given to the companies within ten days after such appointment.\n \n 15. custodian of the policy\u2014nuclear regulatory commission\n \n The named insureds have designated the Nuclear Regulatory Commission as the custodian of this Master Policy and any endorsements thereto.\n \n 16. cancellation\n \n The first named insured designated in Item 1 of a  certificate  may cancel such  certificate  by mailing to the companies and the Nuclear Regulatory Commission written notice stating when, not less than thirty days thereafter, such cancellation shall be effective.\n \n The companies may cancel any  certificate  by mailing to the first named insured designated in Item 1 of such  certificate  written notice stating when, not less than ninety days thereafter, such cancellation shall be effective; provided that in the event of non-payment of any annual premium, retrospective premium or allowance for premium taxes due under a  certificate,  such  certificate  may be canceled by the companies by mailing to the first named insured designated therein written notice stating when, not less than thirty days thereafter, such cancellation shall be effective.\n \n The mailing of notice as aforesaid shall be sufficient proof of notice. The effective date and time of cancellation stated in the notice shall become the end of the  certificate  period. Delivery of such written notice, either by the first named insured designated in Item 1 of a  certificate  or by the companies, shall be equivalent to mailing.\n \n A copy of the companies' cancellation notice shall be mailed to the Nuclear Regulatory Commission, but mailing such copy is not a condition of cancellation.\n \n If a  certificate  is canceled, the earned portion of the annual premium shall be computed pro-rata. Adjustment of the annual premium, if any, may be made either at the time cancellation is effective or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation.\n \n Cancellation or termination of any  certificate  shall not terminate the obligation of a named insured to pay retrospective premium and the allowance for premium taxes as provided in such named insured's  certificate  and Condition 2 of this Master Policy.\n \n This Master Policy shall terminate automatically on the effective date and time of cancellation or termination of the last  certificate  in effect.\n \n 17. company representation\n \n (a) Any notice, sworn statement or proof of loss which may be required by the provisions of this Master Policy may be given to any one of the companies, and such notice, statement or proof of loss so given shall be valid and binding as to all companies.\n \n (b) In any action or suit against the companies, service of process may be made on any one of them and such service shall be deemed valid and binding service on all companies.\n \n (c) Nuclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this Master Policy to be given to the companies may be given to such agent, at its office at The Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut\u201406032 with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies.\n \n 18. authorization of first named insured\n \n Except with respect to compliance with the obligations imposed on the  insured  by Conditions 8, 9, 10 and 11 of this Master Policy, the first named insured designated in Item 1 of a  certificate  is authorized to act for every other person and organization insured under such  certificate  in all matters pertaining to this insurance.\n \n 19. changes in subscribing companies and in their proportionate liability\n \n The members of Nuclear Energy Liability Insurance Association subscribing this Master Policy, and the proportionate liability of each, may change from time to time.\n \n Each company subscribing this Master Policy upon its issuance shall be liable only for its stated proportion of any obligation assumed or expense incurred under this Master Policy because of  bodily injury  or  property damage  caused during the period from the effective date of this Master Policy to the close of December 31 next following. For each subsequent calendar year, beginning January 1 next following the effective date of this Master Policy, the subscribing companies and the proportionate liability of each such company shall be stated in an endorsement issued to form a part of this Master Policy, duly executed by the President of Nuclear Energy Liability Insurance Association on behalf of each such company, and mailed or delivered to the Nuclear Regulatory Commission.\n \n 20. declarations\n \n By acceptance of this Master Policy, the named insureds designated in a  certificate  agree that the statements in such  certificate  are their agreements and representations, that this Master Policy and such  certificate  are issued in reliance upon the truth of such representations and that this Master Policy and such  certificate  embody all agreements between such named insureds and the companies or any of their agents relating to this insurance.\n \n In witness whereof each of the subscribing companies has caused this Master Policy to be executed on its behalf by the Nuclear Energy Liability Insurance Association and duly countersigned on the first page by an authorized representative.\n \n For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION\n \n By:\n \n Burt C. Proom,\n \n President.\n \n Nuclear Energy Liability Insurance Association\n \n Certificate No. \n \n Forming Part of Master Policy No. \n \n \n \n certificate of insurance declarations and bond for payment of retrospective premiums\n \n Certificate of Insurance\n \n This is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under the Master Policy\u2014Nuclear Energy Liability Insurance (Secondary Financial Protection), herein called the  Master Policy,  issued by Nuclear Energy Liability Insurance Association.\n \n Such insurance as is provided by the Master Policy applies, through this  certificate,  only:\n \n (a) to the  insureds  identified in Items 1 and 2 of the Declarations,\n \n (b) for the  certificate  period stated in Item 6 of the Declarations,\n \n (c) to  bodily injury  or  property damage \n \n (1) with respect to which the  primary financial protection  described in Item 4 of the Declarations would apply but for exhaustion of its limit of liability as described in Condition 6 of the Master Policy, and \n \n (2) which is caused during the  certificate  period stated in Item 6 of the Declarations by a  nuclear incident  arising out of or in connection with the nuclear reactor described in Item 3 of the Declarations, and\n \n (3) which is discovered and for which written claim is made against the  injured  not later than ten years after the end of the  certificate  period stated in Item 6 of the Declarations. However, with respect to  bodily injury  or  property damage  caused by an  extraordinary nuclear occurrence  this subparagraph (3) shall not operate to bar coverage for  bodily injury  or  property damage  which is discovered and for which written claim is made against the  insured  not later than twenty years after the date of the  extraordinary nuclear occurrence. \n \n declarations\n \n Item 1. Named insureds and addresses:\n \n (a) \n \n (b) \n \n Item 2. Additional  insureds: \n \n Any other person or organization who would be insured under the  primary financial protection  identified in Item 4 of the Declarations but for exhaustion of the limit of liability of such  primary financial protection. \n \n Item 3. Description and location of nuclear reactor:\n \n Item 4. (a) Identification of  primary financial protection  applicable to the nuclear reactor and limit(s) of liability thereof: \n \n Nuclear Energy Liability Insurance Association's Policy NF-  $108,500,000\n \n Mutual Atomic Energy Liability Underwriters' Policy MF-  $31,500,000\n \n (b) The following endorsements, attached to the  primary financial protection  policies listed in Item 4(a) also apply to the insurance afforded by the Master Policy through this  certificate  as though they were attached hereto:\n \n (1) Waiver of Defense Endorsement (Extraordinary Nuclear Occurrence) and\n \n (2) Supplementary Endorsement\u2014Waiver of Defenses\u2014Reactor Construction at the Facility,\n \n (c) The limits of liability provided under the  primary financial protection  specified in Item 4(a) above are not shared with any other reactor except as follows:\n \n Item 5. Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' contingent liability, if any, pursuant to Conditions 2, 3, and 4 of the Master Policy.\n \n Item 6.  Certificate  Period: Beginning at 12:01 a.m. on ____________ and continuing to the effective date and time of cancellation or termination of the Master Policy or this  certificate,  whichever first occurs, eastern standard time.\n \n Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each  nuclear incident:  $3,875,000.\n \n Item 8. Premium payable pursuant to Condition 1 of the Master Policy for the period from ____________ through December 31 following: $______.\n \n Bond for Payment of Retrospective Premiums\n \n Know All Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Master Policy described in the above Certificate of Insurance and Declarations. The named insureds do hereby convenant with and are held and are firmly bound to the members of Nuclear Energy Liability Insurance Association subscribing the Master Policy (hereinafter called the  companies ) to pay the companies all retrospective premiums and allowances for premium taxes which shall become due and payable in accordance with the Master Policy, as it may be changed from time to time, with interest on such premiums and allowances for taxes to be computed at the rate provided in the Master Policy from the date payment thereof is specified to be due the companies in written notice to the first named insured as provided in Condition 2 of the Master Policy until paid;\n \n And it is hereby expressly agreed that copies of written notices of retrospective premiums and allowances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts;\n \n And it is further expressly agreed that the named insureds will indemnify the companies against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court cost, and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply with the convenants and provisions of this Bond and (2) in enforcing any of the convenants or provisions of this Bond, or any provisions of the Master Policy relating to such convenants or provisions; \n \n For the purpose of recording this agreement, a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original. \n \n The preceding Certificate of Insurance, Declarations and Bond form a part of the Master Policy. Cancellation or termination of the Master Policy or the Certificate of Insurance shall not affect the named insured's obligations under the policy or the Bond to pay the retrospective premiums and allowances for premium taxes, as provided in this  Certificate  and Condition 2 of the Master Policy.\n \n In witness whereof, the named insureds have caused the Declaration and the Bond for Payment of Retrospective Premiums to be signed and sealed by a duly authorized officer, to be effective ____________ eastern standard time.\n \n Attest or Witness\n \n Named Insureds:\n \n By\n \n (Seal)\n \n (Signature of Officer)\n \n \n \n (type or print Name & Title of Officer)\n \n Date:\n \n In witness whereof, the companies subscribing the Master Policy have caused the Certificate of Insurance and the Declarations to be signed on their behalf by the President of Nuclear Energy Liability Insurance Association to be effective __________ eastern standard time, and countersigned below by a duly authorized representative.\n \n For the Subscribing Companies of Nuclear Energy Liability Insurance Association.\n \n By: President\n \n Countersigned by\n \n (Authorized Representative)\n\nNamed Insured: Each person or organization designated in Item 1 of a  certificate.\n\nPolicy Period: Beginning on the first day of August, 1977, and continuing to the effective date and time of the cancellation or other termination of this policy, eastern standard time.\n\nLimits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' contingent liability, if any, pursuant to Conditions 2, 3, and 4.\n\nIn consideration of the payment of the annual premium, in reliance upon the statements in the  certificates  and subject to the limits of liability, conditions and other terms of this Master Policy, the undersigned members of Nuclear Energy Liability Insurance Association (hereinafter called the  companies ), each for itself, severally and not jointly, and in the respective proportions herein set forth, and the  insureds  named in the  certificates,  agree as follows:\n\nTo pay on behalf of or to the  insured  or to the  insured's  workers' compensation carrier all sums payable as  excess losses  to which this Master Policy applies.\n\nBodily injury  means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.\n\nCertificate  means a Certificate of Insurance, including Declarations and Bond for Payment of Retrospective Premiums, issued to be a part of this Master Policy.\n\nCommon nuclear occurrence  means any occurrence or series of occurrences causing  bodily injury  or  property damage  arising out of the radioactive, toxic, explosive, or other hazardous properties of  nuclear material\n\n(a) Discharged or dispersed from a nuclear reactor described in Item 3 of a  certificate  over a period of days, weeks, months, or longer, or\n\n(b) Discharged or dispersed from a nuclear reactor described in Item 3 of a  certificate  over a period of days, weeks, months or longer and also arising out of such properties of  nuclear material  so discharged or dispersed from one or more other nuclear reactors described in Item 3 of other  certificates,  or\n\n(c) In the course of transportation for which protection is afforded (or would be afforded but for exhaustion of its limit of liability) under the  primary financial protection  described in Item 4 of a  certificate  and also arising out of such properties of nuclear material in the course of transportation for which protection is afforded (or would be afforded but for exhaustion of its limit of liability) under the  primary financial protection  described in Item 4 of one or more other  certificates.\n\nDamages and claim expenses  includes sums estimated by the companies to be payable under this policy and payments made by the companies under this Master Policy:\n\n(a) In settlement of claims and in satisfaction of judgments against the  insureds  for damages because of  bodily injury  or  property damage;\n\n(b) For (1) costs taxed against an  insured  in any suit against the  insured  seeking damages payable under the terms of this Master Policy and interest on any judgment therein, (2) premiums on appeal bonds and bonds to release attachments in any such suit and (3) reasonable expenses, other than loss of earnings, incurred by the  insured  at the companies' request;\n\n(c) For expenses incurred in the investigation, negotiation, settlement and defense of any claim or suit including, but not limited to, the cost of such services by salaried employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, inspection and appraisal of property, examination, X-ray or autopsy or medical expenses of any kind;\n\n(d) For expenses incurred by the companies in investigating a  nuclear incident  or in minimizing its effects;\n\n(e) For all other expenses of the companies in fulfilling their obligations under this Master Policy, provided that such expenses are reasonable and necessary.\n\nExcess losses  means all  damages and claim expenses\n\n(a) Because of  bodily injury  or  property damage  to which a  certificate  applies, and\n\n(b) Which are excess of all sums paid or payable as estimated by the companies under all applicable  primary financial protection.\n\nExtraordinary nuclear occurrence  has the meaning given it in the Atomic Energy Act of 1954, or in any law amendatory thereof.\n\nInsured  means any person or organization identified in Item 1 or 2 of a  certificate.\n\nNuclear incident  means\n\n(a) An  extraordinary nuclear occurrence,  or\n\n(b) A  common nuclear occurrence,  or if neither of these,\n\n(c) An occurrence or series of occurrences, including continuous or repeated exposure to substantially the same general conditions, causing  bodily injury  or  property damage  arising out of the radioactive, toxic, explosive, or other hazardous properties of  nuclear material.\n\nNuclear material  means  source material, special nuclear material  or  byproduct material.\n\nPrimary financial protection  means the insurance policies or other contracts identified in Item 4 of a  certificate  and includes any amendment thereto which is consented to by the companies pursuant to Condition 6 of this Master Policy.\n\nProperty damage  means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of such contamination.\n\nSource material, special nuclear material,  and  byproduct material  have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof.\n\nInsurance is provided by this Master Policy only through a  certificate.  No insurance is afforded with respect to  bodily injury  or  property damage  caused prior to August 1, 1977 by a  nuclear incident.\n\nThe named insureds designated in a  certificate  shall pay to the companies the annual premium for each calendar year or part thereof.\n\nSuch annual premium shall be determined by the companies and stated in a written notice mailed to the first named insured shown in Item 1 of a  certificate,  and shall be due and payable as stated in such notice.\n\nThe named insureds designated in a  certificate  shall pay to the companies retrospective premium in the event of  excess losses  due to  bodily injury  or  property damage  caused during their  certificate  period by a  nuclear incident  arising out of or in connection with a nuclear reactor described in Item 3 of the  certificate  or in Item 3 of any other  certificate.  The amount of retrospective premium-due under each  certificate  shall be determined by multiplying such  excess losses  by the ratio of the maximum retrospective premium payable with respect to the  nuclear incident  under the  certificate  to the total of the maximum retrospective premiums payable with respect to the  nuclear incident  under all such  certificates.\n\nIf any portion of the  bodily injury  or  property damage  to which this Master Policy applies is caused during any portion of a  certificate  period by a  nuclear incident,  the retrospective premium the named insureds designated in such  certificate  are obligated to pay shall be determined as if all  bodily injury  or  property damage  to which this Master Policy applies caused by the  nuclear incident  had been caused during the  certificate  period of such  certificate.\n\nThe maximum retrospective premium that the named insureds designated in a  certificate  shall pay to the companies for all  excess losses  arising out of any one  nuclear incident  is the amount stated in Item 7 of their  certificate.\n\nIn the event of two more  nuclear incidents,  the maximum amount of retrospective premium that shall be due from and payable by the named insureds in one calendar year shall not exceed twice the amount stated in Item 7 of their  certificate.  Any amount in excess thereof shall be paid in subsequent calendar years as billed by the companies.\n\nIn addition, an allowance for applicable premium taxes shall be determined by the companies and paid to them by the named insureds at the time retrospective premiums are due and payable.\n\nAfter a  nuclear incident  resulting in  excess losses,  the companies shall mail to the first named insured designated in Item 1 of a  certificate  written notice of the retrospective premium and allowance for premium taxes then due under such  certificate.  Such notice shall also constitute notice to all other named insureds designated in such  certificate.  The named insureds shall pay directly to the Nuclear Energy Liability Insurance Association the retrospective premium and allowance for premium taxes stated in the notice. The notice shall specify a date no earlier than 60 days after mailing by which time payment is to be received by the Nuclear Energy Liability Insurance Association.\n\nThe companies shall at least annually review their estimate of  excess losses  arising out of the  nuclear incident  and shall adjust the retrospective premium and allowance for premium taxes accordingly. If the amount due from the named insureds is increased, written notice shall be mailed to the first named insured in accordance with the foregoing paragraph; if deceased the companies shall return the excess to the first named insured.\n\nThe obligation of the named insureds to pay retrospective premium and the allowance for premium taxes for  excess losses  arising out of a  nuclear incident  shall continue until the named insureds have paid the maximum retrospective premium stated in Item 7 of their  certificate  plus allowance for premium taxes.\n\nThe companies shall send to the Nuclear Regulatory Commission summaries of their estimates of  excess losses  arising out of the  nuclear incident  and their computations of retrospective premium and the allowance for premium taxes due.\n\nAll retrospective premium (but not the allowance for premium taxes) received by the companies is to be held by the companies separate from the companies' other assets and is to be used by the companies only for the purpose of paying  excess losses.  Any investment income received by the companies from such retrospective premium shall accrue to the benefit of the named insureds. This paragraph shall not apply to any retrospective premium received by the companies as reimbursement for any funds expended pursuant to Condition 4.\n\nNo commission will be paid with respect to retrospective premium and allowance for premium taxes.\n\nRegardless of the number of\n\n(a) Persons or organizations who are  insureds  under this Master Policy, or\n\n(b) Claims made and suits brought against any and all  insureds,  or\n\n(c) Policies or contracts of  primary financial protection  or  certificates  which apply to the  nuclear incident,  or\n\n(d) Years this Master Policy and any  certificate  shall continue in force,\n\nThe total liability of the companies under this Master Policy for all  excess losses  arising out of any  nuclear incident  shall not exceed the amount of retrospective premium actually received by the companies pursuant to Condition 2 with respect to such  nuclear incident  plus the companies' contingent liability, if any, as determined by Condition 4. Reimbursement of the companies for funds expended pursuant to Condition 4 shall not operate to increase the total liability of the companies.\n\nThe companies have a contingent liability under this Master Policy for payment of  excess losses  but only if, and to the extent that, the retrospective premium due under one or more  certificates  is not paid. In the event of any such failure to pay retrospective premiums, the companies' obligations under this Condition 4 are limited as follows:\n\nRegardless of the number of  nuclear incidents  which cause  bodily injury  or  property damage  to which this Master Policy applies, the number of years this Master Policy is in force, the number of  certificates  issued or in effect, or the number of annual premiums paid or payable.\n\n(a) The total contingent liability of the companies for all  excess losses  arising out of two or more  nuclear incidents  shall not exceed $46,500,000;\n\n(b) Subject to the above provision (a), the total contingent liability of the companies for all  excess losses  arising out of any one  nuclear incident  shall not exceed $23,250,000;\n\n(c) Subject to the above provisions (a) and (b), the maximum amount to be paid by the companies in any one calendar year because of contingent liability for  excess losses  shall not exceed $23,250,000.\n\nIf a named insured designated in a  certificate  shall become insolvent or be adjudged bankrupt, the companies' obligation under this Condition 4 shall not apply to the failure of any named insured designated in such  certificate  to pay retrospective premium with respect to  excess losses  because of  bodily injury  or  property damage  caused after the date of such insolvency or bankruptcy.\n\nSubject to the provisions of any written agreement between the companies and the Nuclear Regulatory Commission, the companies shall defend any claim or suit alleging  bodily injury  or  property damage  caused by a  nuclear incident  and seeking damages which are payable under this Master Policy, and may make such investigation and settlement of any claim or suit as they deem expedient. In no event shall the companies be obligated to pay any claim or judgment or to defend any claim or suit after the companies have paid the amount of retrospective premium actually received for  excess losses  arising out of the  nuclear incident  plus the amount of their contingent liability, if any.\n\nRegardless of the number of policies or contracts of  primary financial protection  applicable to a  nuclear incident,  the limit of liability of all such policies or contracts shall be deemed to be exhausted when the sums paid under all such policies or contracts are equal to the lesser of (1) the sum of the limits of liability available under all such primary financial protection or (2) one hundred forty million dollars.\n\nThe named insured designated in a  certificate  shall maintain in full effect during the currency of such  certificate  the  primary financial protection  described therein, except for any reduction of the limit of liability of such  primary financial protection  solely as the result of sums paid thereunder. Failure of the named insureds to comply with the foregoing shall not invalidate this Master Policy, but in the event of such failure the companies shall be liable only to the extent that they would have been liable and the named insureds complied therewith.\n\nIn the event that the limit of liability of the  primary financial protection  is reduced, such names insureds shall immediately inform the companies thereof and make all reasonable efforts to reinstate such limit.\n\nUpon the companies' request the named insureds shall provide the companies with a certified copy of any policy or other contract of  primary financial protection.  No amendment of the  primary financial protection  shall increase, extend or broaden the insurance provided by this Master Policy unless the companies agree to the amendment by an endorsement issued to form a part of this Master Policy.\n\nIf retrospective premium or allowance for premium taxes is not paid when due by the named insureds designated in Item 1 of a  certificate,  such named insureds shall be obligated to pay, in addition to the amount in default, interest thereon during the period of default. Such interest shall be computed at an annual rate equal to the sum of (a) three percent plus (b) a rate of interest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the date that the retrospective premium and allowance for premium taxes were due. The annual rate of interest shall be adjusted monthly during the period of default to reflect any revisions of Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the first business day of each such month.\n\nThe interest so received shall be used to pay to the companies interest at the annual rate described above for any funds the companies have paid pursuant to Condition 4. Any balance remaining shall accrue to the benefit of named insureds not in default as if it were investment income on retrospective premium.\n\nIn the event of  bodily injury  or  property damage  to which this Master Policy applies or of a  nuclear incident  which may give rise to claims therefor, written notice containing particulars sufficient to identify the  insured  and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the  insured  to Nuclear Energy Liability Insurance Association or the companies as soon as practicable. If claim is made or suit is brought against the  insured,  the  insured  shall immediately forward to Nuclear Energy Liability Insurance Association or the companies every demand, notice, summons or other process received by or on behalf of the  insured.\n\nThe  insured  shall cooperate with the companies and, upon the companies' request, attend hearings and trials and assist in making settlements, in securing and giving evidence, in obtaining the attendance of witnesses and in the conduct of any legal proceedings in connection with the subject matter of this insurance. The  insured  shall not, except at the  insured's  own cost, make any payment, assume any obligation or incur any expense.\n\nNo action shall lie against the companies or any of them unless, as a condition precedent thereto, the  insured  shall have fully complied with all the terms of this Master Policy, nor until the amount of the  insured's  obligation to pay shall have been finally determined either by judgment against the  insured  after actual trial or by written agreement of the  insured,  the claimant and the companies.\n\nAny person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this Master Policy to the extent of the insurance afforded by this Master Policy. No person or organization shall have any right under this Master Policy to join the companies or any of them as parties to any action against the  insured  to determine the  insured's  liability, nor shall the companies or any of them be impleaded by the  insured  or the  insured's  legal representative. Except as provided in Condition 4, bankruptcy or insolvency of the  insured  or of the  insured's  estate shall not relieve the companies of any of their obligations hereunder.\n\nIn the event of any payment under this Master Policy, the companies may participate with the  insured  and any underlying insurer in the exercise of all the  insured's  rights of recovery against any person or organization liable therefor. Prior to knowledge of  bodiliy injury  or  property damage  to which this Master Policy applies or of a  nuclear incident  which may give rise to claims therefor, the  insured  may waive in writing any right of recovery against any person or organization. After such knowledge, the  insured  shall not waive or otherwise prejudice any such right of recovery but shall do everything necessary to secure such rights. Recoveries shall be applied first to reimburse any person or organization (including the  insured)  that may have paid any amount with respect to liability in excess of the limit of the companies' liability hereunder; then to reimburse the companies up to the amount paid hereunder; and lastly to reimburse anyone entitiled to claim the residue, if any. A different apportionment maybe made by agreement signed by all parties affected.\n\nReasonable expenses incurred in the exercise of rights of recovery shall be apportioned in the ratio of the respective losses for which recovery is sought. The companies shall, after deducting all of their expenses in securing recovery, apply the net amount of recoveries made by the companies as a credit in determining the amount of  excess  losses.\n\nThis insurance shall be excess insurance over  primary financial protection.\n\nThis insurance is concurrent with insurance afforded by a Master Policy\u2014Nuclear Energy Liability Insurance (Secondary Financial Protection) issued to the named insured by Mutual Atomic Energy Liability Underwriters, hereinafter called  concurrent insurance.  The companies shall not be liable under this Master Policy for a greater proportion of  excess losses  than the applicable limit of liability described in Condition 3 bears to the sum of (a) such limit plus (b) the applicable limit of liability of such concurrent insurance.\n\nIf the  insured  has other valid and collectible insurance (other than  primary financial protection  or concurrent insurance) applicable to  excess losses  covered by this Master Policy, the insurance afforded by this Master Policy shall be primary insurance under such other insurance.\n\nNotice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this Master Policy or estop the companies from asserting any right under the terms of this Master Policy; nor shall the terms of this Master Policy be waived or changed, except by endorsement executed by Nuclear Energy Liability Insurance Association on behalf of the companies and issued to form a part of this Master Policy.\n\nAssignment of interest by the named insured shall not bind the companies until their consent is endorsed hereon; if, however, the named insured shall die or be declared bankrupt or insolvent, this Master Policy shall cover such named insured's legal representative, receiver or trustee as an  insured  under this Master Policy, but only with respect to such legal representative's, receiver's or trustee's liability as such, and then only provided written notice of the legal representative's, receiver's or trustee's appointment as such is given to the companies within ten days after such appointment.\n\nThe named insureds have designated the Nuclear Regulatory Commission as the custodian of this Master Policy and any endorsements thereto.\n\nThe first named insured designated in Item 1 of a  certificate  may cancel such  certificate  by mailing to the companies and the Nuclear Regulatory Commission written notice stating when, not less than thirty days thereafter, such cancellation shall be effective.\n\nThe companies may cancel any  certificate  by mailing to the first named insured designated in Item 1 of such  certificate  written notice stating when, not less than ninety days thereafter, such cancellation shall be effective; provided that in the event of non-payment of any annual premium, retrospective premium or allowance for premium taxes due under a  certificate,  such  certificate  may be canceled by the companies by mailing to the first named insured designated therein written notice stating when, not less than thirty days thereafter, such cancellation shall be effective.\n\nThe mailing of notice as aforesaid shall be sufficient proof of notice. The effective date and time of cancellation stated in the notice shall become the end of the  certificate  period. Delivery of such written notice, either by the first named insured designated in Item 1 of a  certificate  or by the companies, shall be equivalent to mailing.\n\nA copy of the companies' cancellation notice shall be mailed to the Nuclear Regulatory Commission, but mailing such copy is not a condition of cancellation.\n\nIf a  certificate  is canceled, the earned portion of the annual premium shall be computed pro-rata. Adjustment of the annual premium, if any, may be made either at the time cancellation is effective or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation.\n\nCancellation or termination of any  certificate  shall not terminate the obligation of a named insured to pay retrospective premium and the allowance for premium taxes as provided in such named insured's  certificate  and Condition 2 of this Master Policy.\n\nThis Master Policy shall terminate automatically on the effective date and time of cancellation or termination of the last  certificate  in effect.\n\n(a) Any notice, sworn statement or proof of loss which may be required by the provisions of this Master Policy may be given to any one of the companies, and such notice, statement or proof of loss so given shall be valid and binding as to all companies.\n\n(b) In any action or suit against the companies, service of process may be made on any one of them and such service shall be deemed valid and binding service on all companies.\n\n(c) Nuclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this Master Policy to be given to the companies may be given to such agent, at its office at The Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut\u201406032 with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies.\n\nExcept with respect to compliance with the obligations imposed on the  insured  by Conditions 8, 9, 10 and 11 of this Master Policy, the first named insured designated in Item 1 of a  certificate  is authorized to act for every other person and organization insured under such  certificate  in all matters pertaining to this insurance.\n\nThe members of Nuclear Energy Liability Insurance Association subscribing this Master Policy, and the proportionate liability of each, may change from time to time.\n\nEach company subscribing this Master Policy upon its issuance shall be liable only for its stated proportion of any obligation assumed or expense incurred under this Master Policy because of  bodily injury  or  property damage  caused during the period from the effective date of this Master Policy to the close of December 31 next following. For each subsequent calendar year, beginning January 1 next following the effective date of this Master Policy, the subscribing companies and the proportionate liability of each such company shall be stated in an endorsement issued to form a part of this Master Policy, duly executed by the President of Nuclear Energy Liability Insurance Association on behalf of each such company, and mailed or delivered to the Nuclear Regulatory Commission.\n\nBy acceptance of this Master Policy, the named insureds designated in a  certificate  agree that the statements in such  certificate  are their agreements and representations, that this Master Policy and such  certificate  are issued in reliance upon the truth of such representations and that this Master Policy and such  certificate  embody all agreements between such named insureds and the companies or any of their agents relating to this insurance.\n\nIn witness whereof each of the subscribing companies has caused this Master Policy to be executed on its behalf by the Nuclear Energy Liability Insurance Association and duly countersigned on the first page by an authorized representative.\n\nFor the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION\n\nBy:\n\nBurt C. Proom,\n\nPresident.\n\nThis is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under the Master Policy\u2014Nuclear Energy Liability Insurance (Secondary Financial Protection), herein called the  Master Policy,  issued by Nuclear Energy Liability Insurance Association.\n\nSuch insurance as is provided by the Master Policy applies, through this  certificate,  only:\n\n(a) to the  insureds  identified in Items 1 and 2 of the Declarations,\n\n(b) for the  certificate  period stated in Item 6 of the Declarations,\n\n(c) to  bodily injury  or  property damage\n\n(1) with respect to which the  primary financial protection  described in Item 4 of the Declarations would apply but for exhaustion of its limit of liability as described in Condition 6 of the Master Policy, and\n\n(2) which is caused during the  certificate  period stated in Item 6 of the Declarations by a  nuclear incident  arising out of or in connection with the nuclear reactor described in Item 3 of the Declarations, and\n\n(3) which is discovered and for which written claim is made against the  injured  not later than ten years after the end of the  certificate  period stated in Item 6 of the Declarations. However, with respect to  bodily injury  or  property damage  caused by an  extraordinary nuclear occurrence  this subparagraph (3) shall not operate to bar coverage for  bodily injury  or  property damage  which is discovered and for which written claim is made against the  insured  not later than twenty years after the date of the  extraordinary nuclear occurrence.\n\nItem 1. Named insureds and addresses:\n\n(a)\n\n(b)\n\nItem 2. Additional  insureds:\n\nAny other person or organization who would be insured under the  primary financial protection  identified in Item 4 of the Declarations but for exhaustion of the limit of liability of such  primary financial protection.\n\nItem 3. Description and location of nuclear reactor:\n\nItem 4. (a) Identification of  primary financial protection  applicable to the nuclear reactor and limit(s) of liability thereof:\n\nNuclear Energy Liability Insurance Association's Policy NF-  $108,500,000\n\nMutual Atomic Energy Liability Underwriters' Policy MF-  $31,500,000\n\n(b) The following endorsements, attached to the  primary financial protection  policies listed in Item 4(a) also apply to the insurance afforded by the Master Policy through this  certificate  as though they were attached hereto:\n\n(1) Waiver of Defense Endorsement (Extraordinary Nuclear Occurrence) and\n\n(2) Supplementary Endorsement\u2014Waiver of Defenses\u2014Reactor Construction at the Facility,\n\n(c) The limits of liability provided under the  primary financial protection  specified in Item 4(a) above are not shared with any other reactor except as follows:\n\nItem 5. Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' contingent liability, if any, pursuant to Conditions 2, 3, and 4 of the Master Policy.\n\nItem 6.  Certificate  Period: Beginning at 12:01 a.m. on ____________ and continuing to the effective date and time of cancellation or termination of the Master Policy or this  certificate,  whichever first occurs, eastern standard time.\n\nItem 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each  nuclear incident:  $3,875,000.\n\nItem 8. Premium payable pursuant to Condition 1 of the Master Policy for the period from ____________ through December 31 following: $______.\n\nKnow All Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Master Policy described in the above Certificate of Insurance and Declarations. The named insureds do hereby convenant with and are held and are firmly bound to the members of Nuclear Energy Liability Insurance Association subscribing the Master Policy (hereinafter called the  companies ) to pay the companies all retrospective premiums and allowances for premium taxes which shall become due and payable in accordance with the Master Policy, as it may be changed from time to time, with interest on such premiums and allowances for taxes to be computed at the rate provided in the Master Policy from the date payment thereof is specified to be due the companies in written notice to the first named insured as provided in Condition 2 of the Master Policy until paid;\n\nAnd it is hereby expressly agreed that copies of written notices of retrospective premiums and allowances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts;\n\nAnd it is further expressly agreed that the named insureds will indemnify the companies against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court cost, and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply with the convenants and provisions of this Bond and (2) in enforcing any of the convenants or provisions of this Bond, or any provisions of the Master Policy relating to such convenants or provisions;\n\nFor the purpose of recording this agreement, a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original.\n\nThe preceding Certificate of Insurance, Declarations and Bond form a part of the Master Policy. Cancellation or termination of the Master Policy or the Certificate of Insurance shall not affect the named insured's obligations under the policy or the Bond to pay the retrospective premiums and allowances for premium taxes, as provided in this  Certificate  and Condition 2 of the Master Policy.\n\nIn witness whereof, the named insureds have caused the Declaration and the Bond for Payment of Retrospective Premiums to be signed and sealed by a duly authorized officer, to be effective ____________ eastern standard time.\n\nAttest or Witness\n\nNamed Insureds:\n\n(Seal)\n\n(Signature of Officer)\n\n(type or print Name & Title of Officer)\n\nIn witness whereof, the companies subscribing the Master Policy have caused the Certificate of Insurance and the Declarations to be signed on their behalf by the President of Nuclear Energy Liability Insurance Association to be effective __________ eastern standard time, and countersigned below by a duly authorized representative.\n\nFor the Subscribing Companies of Nuclear Energy Liability Insurance Association.\n\n(Authorized Representative)"], ["10:10:2.0.1.1.21.6.134.2", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.89 Criminal penalties.", "NRC", "", "", "[57 FR 55080, Nov. 24, 1992]", "(a) Section 223 of the Atomic Energy Act of 1954, as amended, provides for criminal sanctions for willful violation of, attempted violation of, or conspiracy to violate, any regulation issued under sections 161b, 161i, or 161o of the Act. For purposes of section 223, all the regulations in part 140 are issued under one or more of sections 161b, 161i, or 161o, except for the sections listed in paragraph (b) of this section.\n\n(b) The regulations in part 140 that are not issued under sections 161b, 161i, or 161o for the purposes of section 223 are as follows: \u00a7\u00a7 140.1, 140.2, 140.3, 140.4, 140.5, 140.7, 140.8, 140.9, 140.9a, 140.10, 140.14, 140.16, 140.18, 140.19, 140.20, 140.51, 140.52, 140.71, 140.72, 140.81, 140.82, 140.83, 140.84, 140.85, 140.87, 140.89, 140.91, 140.92, 140.93, 140.94, 140.95, 140.96, 140.107, 140.108, and 140.109."], ["10:10:2.0.1.1.21.6.134.3", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.91 Appendix A\u2014Form of nuclear energy liability policy for facilities.", "NRC", "", "", "[25 FR 2948, Apr. 7, 1960]", "While the text of the policy which follows is exemplary of a contract acceptable to the Commission as evidence of the financial protection required of the licensee by section 170 of the Atomic Energy Act of 1954, as amended, variations on this text submitted by the licensee also will be considered by the Commission in determining whether the licensee meets the financial protection requirements of the Act. The full text of the policy is published solely for the purpose of completeness. Publication of this text should not be construed as a Commission endorsement of any particular provision pertaining solely to the business relationship between the insurers and the insureds or to any other matter not within the Commission's statutory jurisdiction under the Atomic Energy Act.\n \n Nuclear Energy Liability Policy \n \n (Facility Form)\n \n The undersigned members of __________, hereinafter called the \u201ccompanies,\u201d each for itself, severally and not jointly, and in the respective proportions hereinafter set forth, agree with the insured, named in the declarations made a part hereof, in consideration of the premium and in reliance upon the statements in the declarations and subject to the limit of liability, exclusions, conditions and other terms of this policy; \n \n insuring agreements\n \n I.  Coverage A\u2014Bodily injury and property damage liability.  To pay on behalf of the insured: \n \n (1) All sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage caused by the nuclear energy hazard, and the companies shall defend any suit against the insured alleging such bodily injury or property damage and seeking damages which are payable under the terms of this policy; but the companies may make such investigation, negotiation and settlement of any claim or suit as they deem expedient; \n \n (2) Costs taxed against the insured in any such suit and interest on any judgment therein; \n \n (3) Premiums on appeal bonds and on bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds; \n \n (4) Reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request. \n \n Coverage B\u2014Damage to property of an insured away from the facility.  With respect to property damage caused by the nuclear energy hazard to property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as damages therefor, had such property belonged to another. \n \n Coverage C\u2014Subrogation\u2014Offsite employees.  With respect to bodily injury sustained by any employee of an insured and caused by the nuclear energy hazard, to pay to the workmen's compensation carrier of such insured all sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage. This Coverage C does not apply to bodily injury sustained by any person who is employed at and in connection with the facility. This Coverage C shall not constitute workmen's compensation insurance as required under the laws of any state. \n \n II.  Definition of insured.  The unqualified word  insured  includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for damages because of bodily injury or property damage caused by the nuclear energy hazard. \n \n Subdivision (b) above does not include as an insured the United States of America or any of its agencies. \n \n Subject to Condition 3 and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is brought. \n \n III.  Definitions.  Wherever used in this policy: \n \n Bodily injury  means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person; \n \n Property damage  means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of such contamination; \n \n Nuclear material  means source material, special nuclear material or byproduct material; \n \n Source material, special nuclear material,  and  byproduct material  have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof; \n \n Spent fuel  means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor; \n \n Waste  means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof; \n \n The facility  means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location; \n \n Nuclear facility  means  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by the companies or by __________________________________.\n \n The term  nuclear facility  also means \n \n (1) Any nuclear reactor, \n \n (2) Any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste, \n \n (3) Any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium-233 or any combination thereof, or more than 250 grams of uranium-235, \n \n (4) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; \n \n Indemnified nuclear facility  means \n \n (1)  The facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by the companies or by ______________________________________________,\n \n (2) Any other nuclear facility,\n \n if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat; \n \n Nuclear reactor  means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; \n \n Nuclear energy hazard  means the radioactive, toxic, explosive or other hazardous properties of nuclear material, but only if: \n \n (1) The nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any person or organization, or \n \n (2) The nuclear material is in an insured shipment which is (a) in the course of transportation, including handling and temporary storage incidental thereto, within the territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone and (b) away from any other nuclear facility; \n \n Insured shipment  means a shipment of source material, special nuclear material, spent fuel of waste, herein called  material,  (1) to the facility from a nuclear facility owned by the United States of America, but only if the transportation of the material is not by predetermination to be interrupted by the removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location except an indemnified nuclear facility, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation. \n \n IV.  Application of policy.  This policy applies only to bodily injury or property damage (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured, not later than two years after the end of the policy period. \n \n Exclusions\n \n This policy does not apply: \n \n (a) To any obligation for which the insured or any carrier as his insurer may be held liable under any workmen's compensation, unemployment compensation or disability benefits law, or under any similar law; \n \n (b) Except with respect to liability of another assumed by the insured under contract, to bodily injury to any employee of the insured arising out of and in the course of his employment by the insured; but this exclusion does not apply to bodily injury to any person who is not employed at and in connection with the facility if the insured has complied with the requirements of the applicable workmen's compensation or occupational disease law respecting the securing of compensation benefits thereunder to his employees; \n \n (c) To liability assumed by the insured under contract, other than an assumption in a contract with another of the liability of any person or organization which would be imposed by law on such person or organization in the absence of an express assumption of liability; \n \n (d) To bodily injury or property damage due to the manufacturing, handling or use at the location designated in Item 3 of the declarations, in time of peace or war, of any nuclear weapon or other instrument of war utilizing special nuclear material or byproduct material; \n \n (e) To bodily injury or property damage due to war, whether or not declared, civil war, insurrection, rebellion or revolution, or to any act or conditions incident to any of the foregoing; \n \n (f) To property damage to any property at the location designated in Item 3 of the declarations, other than aircraft, watercraft or vehicles licensed for highway use, provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility; \n \n (g) To property damage to nuclear material in the course of transportation to or from the facility including handling or storage incidental thereto; \n \n (h) Under Coverage B, to property damage due to neglect of the insured to use all reasonable means to save and preserve the property after knowledge of the occurrence resulting in such property damage. \n \n Conditions\n \n 1.  Premium \u2014(1)  Definitions.  With reference to the premium for this policy:  advance premium,  for any calendar year, is the estimated standard premium for that calendar year; \n \n Standard premium,  for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Credit Rating Plan), premiums and minimum premiums applicable to this insurance; \n \n Reserve premium  means that portion of the standard premium paid to the companies and specifically allocated under the Industry Credit Rating Plan for incurred losses. The amount of the  reserve premium  for this policy for any calendar year during which this policy is in force is the amount designated as such in the Standard Premium Endorsement for that calendar year; \n \n Industry reserve premium,  for any calendar year, is the sum of the reserve premiums for that calendar year for all Nuclear Energy Liability Policies issued by the Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan; \n \n Policy refund ratio,  for any calendar year, is the ratio of the named insured's reserve premium for that calendar year to the industry reserve premium for that calendar year; \n \n Incurred losses  means the sum of: \n \n (1) All losses and expenses by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters, and \n \n (2) All reserves for unpaid losses and expenses as estimated by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters because of obligations assumed and the expenses incurred in connection with such obligations by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters under all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan; \n \n Reserve for refunds,  at the end of any calendar year, is the amount by which (1) the sum of all industry reserve premiums for the period from January 1, 1957 through the end of such calendar year exceeds (2) the total for the same period of (a) all incurred losses, valued as of the next following July 1, and (b) all reserve premium refunds made under the Industry Credit Rating Plan by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters; \n \n Industry reserve premium refund,  for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the industry reserve premium for the calendar year for which the premium refund is being determined to the sum of such amount and the total industry reserve premiums for the next nine calendar years thereafter, provided that the industry reserve premium refund for any calendar year shall in no event be greater than the industry reserve premium for such calendar year. \n \n (2)  Payment of advance and standard premiums.  The named insured shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this policy through December 31 following. Thereafter, at the beginning of each calendar year while this policy is in force, the named insured shall pay the advance premium for such year to the companies. The advance premium for each calendar year shall be stated in the Advance Premium Endorsement for such calendar year issued to the named insured as soon as practicable prior to or after the beginning of such year. \n \n As soon as practicable after each December 31 and after the termination of this policy, the standard premium for the preceding calendar year shall be finally determined and stated in the Standard Premium Endorsement for that calendar year. If the standard premium so determined exceeds the advance premium previously paid for such calendar year, the named insured shall pay the excess to the companies; if less, the companies shall return to the named insured the excess portion paid by such insured. \n \n The named insured shall maintain records of the information necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the policy period and at such other times during the policy period as the companies may direct. \n \n (3)  Use of reserve premiums.  All reserve premiums paid or payable for this policy may be used by the members of Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters to discharge their obligations with respect to incurred losses whether such losses are incurred under this policy or under any other policy issued by the Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. \n \n (4)  Reserve premium refunds.  A portion of the reserve premium for this policy for the first calendar year of any group of ten consecutive calendar years shall be returnable to the named insured provided there is a reserve for refunds at the end of the tenth calendar year. \n \n (5)  Computation of reserve premium refunds.  The reserve premium refund due the named insured for any calendar year shall be determined by multiplying any industry reserve premium refund for such calendar year by the policy refund ratio for such calendar year. The reserve premium refund for any calendar year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter. \n \n (6)  Final premium.  The final premium for this policy shall be the sum of the standard premiums for each calendar year, or portion thereof, during which this policy remains in force less the sum of all refunds of reserve premiums due the named insured under the provisions of this Condition 1. \n \n (7)  Reserve premium refund agreement.  Each member of Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters subscribing this policy for any calendar year, or portion thereof, thereby agrees for itself, severally and not jointly, and in the respective proportion of its liability assumed under this policy for that calendar year, to return to the named insured that portion of any reserve premium refund due the named insured for that calendar year, determined in accordance with the provisions of this Condition 1. \n \n 2.  Inspection; suspension.  The companies shall be permitted to inspect the facility and to examine the insured's books and records at any time, as far as they relate to the subject-matter of this insurance. \n \n If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of noncompliance with such request, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuance of such dangerous condition, and to the United States Atomic Energy Commission, suspend the insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected. \n \n 3.  Limit of liability; termination of policy upon exhaustion of limit.  Regardless of the number of persons and organizations who are insureds under this policy, and regardless of the number of claims made and suits brought against any or all insureds because of one or more occurrences resulting in bodily injury or property damage caused during the policy period by the nuclear energy hazard, the limit of the companies' liability stated in the declarations is the total liability of the companies for their obligations under this policy and the expenses incurred by the companies in connection with such obligations, including. \n \n (a) Payments in settlement of claims and in satisfaction of judgments against the insureds for damages because of bodily injury or property damage, payments made under parts (2), (3) and (4) of Coverage A and payments made in settlement of claims under Coverages B and C; \n \n (b) Payments for expenses incurred in the investigation, negotiation, settlement and defense of any claim or suit, including, but not limited to, the cost of such services by salaried employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, inspection and appraisal of property, examination, X-ray or autopsy or medical expenses of any kind; \n \n (c) Payments for expenses incurred by the companies in investigating an occurrence resulting in bodily injury or property damage or in minimizing its effects. \n \n Each payment made by the companies in discharge of their obligations under this policy or for expenses incurred in connection with such obligations shall reduce by the amount of such payment the limit of the companies' liability under this policy. \n \n If, during the policy period or subsequent thereto, the total of such payments made by the companies shall exhaust the limit of the companies' liability under this policy, all liability and obligations of the companies under this policy shall thereupon terminate and shall be conclusively presumed to have been discharged. This policy, if not theretofore canceled, shall thereupon automatically terminate. \n \n Regardless of the number of years this policy shall continue in force and the number of premiums which shall be payable or paid, the limit of the companies' liability stated in the declarations shall not be cumulative from year to year. \n \n 4.  Limitation of liability; common occurrence.  Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of \n \n (a) Nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured by the companies under a Nuclear Energy Liability Policy (Facility Form), or \n \n (b) Source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by the companies, shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard. \n \n With respect to such bodily injury and property damage (1) the total aggregate liability of the companies under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of the companies exceed $______________;\n 1 \n   (2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the companies, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by the companies, the limit of liability of each such policy being as determined by Condition 3, thereof.\n \n \n \n 1  For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be \u201c$124,000,000,\u201d for policies issued by Mutual Atomic Energy Liability Underwriters, the amount will be \u201c$36,000,000.\u201d \n The provisions of this condition shall not operate to increase the limit of the companies' liability under this policy. \n \n 5.  Notice of occurrence, claim, or suit.  In the event of bodily injury or property damage to which this policy applies or of an occurrence which may give rise to claims therefor, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to ____________or the companies as soon as practicable. If claim is made or suit is brought against the insured, he shall immediately forward to __________ or the companies every demand, notice, summons or other process received by him or his representative. \n \n 6.  Assistance and cooperation of the insured.  The insured shall cooperate with the companies and, upon the companies' request, attend hearings and trials and assist in making settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of any legal proceedings in connection with the subject matter of this insurance. The insured shall not, except at his own cost, make any payment, assume any obligation or incur any expense. \n \n 7.  Action against companies\u2014Coverages A and C.  No action shall lie against the companies or any of them unless, as a condition precedent thereto, the insured shall have fully complied with all the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the companies. \n \n Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. No person or organization shall have any right under this policy to join the companies or any of them as parties to any action against the insured to determine the insured's liability, nor shall the companies or any of them be impleaded by the insured or his legal representative. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the companies of any of their obligations hereunder. \n \n 8.  Action against companies\u2014Coverage B.  No suit or action on this policy for the recovery of any claim for property damage to which Coverage B applies shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with and unless commenced within two years after the occurrence resulting in such property damage. \n \n 9.  Insured's duties when loss occurs\u2014Coverage B.  In the event of property damage to which Coverage B applies, the insured shall furnish a complete inventory of the property damage claimed, showing in detail the amount thereof. Within ninety-one days after the occurrence resulting in such property damage, unless such time is extended in writing by the companies, the insured shall render to the companies a proof of loss, signed and sworn to by the insured, stating the knowledge and belief of the insured as to the following: identification of such occurrence; the interest of the insured in the property destroyed or damaged, and the amount of each item of property damage claimed; all encumbrances on such property; and all other contracts of insurance, whether valid or not, covering any of such property. The insured shall include in the proof of loss a copy of all descriptions and schedules in all policies. Upon the companies' request, the insured shall furnish verified plans and specifications of any such property. The insured, as often as may be reasonably required, shall exhibit to any person designated by the companies any of such property, and submit to examinations under oath by any person named by the companies and subscribe the same; and, as often as may be reasonably required, shall produce for examination all books of account, records, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the companies or their representatives, and shall permit extracts and copies thereof to be made. \n \n 10.  Appraisal\u2014Coverage B.  In case the insured and the companies shall fail to agree as to the amount of property damage, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty days of such demand. The appraisers shall first select a competent and disinterested umpire and, failing for fifteen days to agree upon such umpire, then, on request of the insured or the companies, such umpire shall be selected by a judge of a court of record in the state in which the property is located. The appraisers shall then appraise each item of property damage and, failing to agree, shall submit their differences only to the umpire. An award in writing, so itemized, of any two when filed with the companies shall determine the amount of property damage. Each appraiser shall be paid by the party selecting him and the expenses of the appraisal and umpire shall be paid by the parties equally. The companies shall not be held to have waived any of their rights by any act relating to appraisal. \n \n 11.  Subrogation.  In the event of any payment under this policy, the companies shall be subrogated to all the insured's rights of recovery therefor against any person or organization, and the insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. Prior to knowledge of bodily injury or property damage caused by the nuclear energy hazard the insured may waive in writing any right or recovery against any person or organization, but after such knowledge the insured shall not waive or otherwise prejudice any such right of recovery. \n \n The companies hereby waive any rights of subrogation acquired against the United States of America or any of its agencies by reason of any payment under this policy. \n \n The companies do not relinquish, by the foregoing provisions, any right to restitution from the insured out of any recoveries made by the insured on account of a loss covered by this policy of any amounts to which the companies would be entitled had such provisions, or any of them, not been included in this policy. \n \n 12.  Other insurance.  If the insurance afforded by this policy for loss or expense is concurrent with insurance afforded for such loss or expense by a Nuclear Energy Liability Policy (Facility Form) issued to the named insured by __________ hereinafter called \u201cconcurrent insurance,\u201d the companies shall not be liable under this policy for a greater proportion of such loss or expense than the limit of liability stated in the declarations of this policy bears to the sum of such limit and the limit of liability stated in the declarations of such concurrent policy. \n \n If the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by the companies or __________ to any person or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance. \n \n 13.  Changes.  Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or stop the companies from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed except by endorsement issued to form a part of this policy executed by __________ on behalf of the companies. \n \n 14.  Assignment.  Assignment of interest by the named insured shall not bind the companies until their consent is endorsed hereon; if, however, the named insured shall die or be declared bankrupt or insolvent, this policy shall cover such insured's legal representative, receiver or trustee as an insured under this policy, but only with respect to his liability as such, and then only provided written notice of his appointment as legal representative, receiver or trustee is given to the companies within ten days after such appointment. \n \n 15.  Cancellation.  This policy may be canceled by the named insured by mailing to the companies and the United States Nuclear Regulatory Commission written notice stating when, not less than thirty days thereafter, such cancellation shall be effective. This policy may be canceled by the companies by mailing to the named insured at the address shown in this policy and to the United States Nuclear Regulatory Commission written notice stating when, not less than ninety days thereafter, such cancellation shall be effective; provided in the event of non-payment of premium or if the operator of the facility, as designated in the declarations, is replaced by another person or organization, this policy may be canceled by the companies by mailing to the named insured at the address shown in this policy and to the United States Nuclear Regulatory Commission written notice stating when, not less than thirty days thereafter, such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured or by the companies shall be equivalent to mailing. \n \n Upon termination or cancellation of this policy, other than as of the end of December 31 in any year, the earned premium for the period this policy has been in force since the preceding December 31 shall be computed in accordance with the following provisions: \n \n (a) If this policy is terminated, pursuant to Condition 3, by reason of the exhaustion of the limit of the companies' liability, all premium theretofore paid or payable shall be fully earned; \n \n (b) If the named insured cancels, the earned premium for such period shall be computed in accordance with the customary annual short rate table and procedure, provided if the named insured cancels after knowledge of bodily injury or property damage caused by the nuclear energy hazard, all premiums theretofore paid or payable shall be fully earned; \n \n (c) If the companies cancel, the earned premium for such period shall be computed pro rata. \n \n Premium adjustment, if any, may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. \n \n 16.  Company representation.  (a) Any notice, sworn statement or proof of loss which may be required by the provisions of this policy may be given to any one of the companies, and such notice, statement or proof of loss so given shall be valid and binding as to all companies. \n \n (b) In any action or suit against the companies, service of process may be made on any one of them, and such service shall be deemed valid and binding service on all companies. \n \n (c) __________ is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy to be given to the companies may be given to such agent, at its office at __________ with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies. \n \n 17.  Authorization of named insured.  Except with respect to compliance with the obligations imposed on the insured by Conditions 5, 6, 7, 8, 9, 10 and 11 of this policy, the named insured is authorized to act for every other insured in all matters pertaining to this insurance. \n \n 18.  Changes in subscribing companies and in their proportionate liability.  By acceptance of this policy the named insured agrees that the members of __________ liable under this policy, and the proportionate liability of each such member, may change from year to year, and further agrees that regardless of such changes: \n \n (1) Each company subscribing this policy upon its issuance shall be liable only for its stated proportion of any obligation assumed or expense incurred under this policy because of bodily injury or property damage caused, during the period from the effective date of this policy to the close of December 31 next following, by the nuclear energy hazard; for each subsequent calendar year, beginning January 1 next following the effective date of this policy, the subscribing companies and the proportionate liability of each such company shall be stated in an endorsement issued to form a part of this policy, duly executed and attested by the __________ of ________________________ on behalf of each such company, and mailed or delivered to the named insured; \n \n (2) This policy shall remain continuously in effect from the effective date stated in the declarations until terminated in accordance with Condition 3 or Condition 15; \n \n (3) Neither the liability of any company nor the limit of liability stated in the declarations shall be cumulative from year to year. \n \n 19.  Declarations.  By acceptance of this policy the named insured agrees that the statements in the declarations are the agreements and representations of the named insured, that this policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements between the named insured and the companies or any of their agents relating to this insurance. \n \n In Witness Whereof, each of the subscribing companies has caused this policy to be executed and attested on its behalf by the ________ of ____________________ and duly countersigned on the declarations page by an authorized representative. \n \n For the subscribing companies.\n \n By __________________________\n \n Subscribing Companies Proportion of 100%\n \n Nuclear Energy Liability Policy No.________ (Facility Form) \n \n Declarations\n \n Item 1. Named Insured ________________. \n \n Address ________________________________.\n \n (No. Street Town or City State)\n \n Item 2. Policy Period: Beginning at 12:01 a.m. on the __________ day of ______________, 19____, and continuing through the effective date of the cancellation or termination of this policy, standard time at the address of the named insured as stated herein. \n \n Item 3. Description of the Facility:\n \n Location \n \n Type \n \n The Operator of the facility is ________. \n \n Item 4. The limit of the companies' liability is $______ subject to all the terms of this policy having reference thereto. \n \n Item 5. Advance Premium $______. \n \n Item 6. These declarations and the schedules forming a part hereof give a complete description of the facility, insofar as it relates to the nuclear energy hazard, except as noted ____________________________________\n \n Date of Issue ____________, 19____. \n \n Countersigned by __________________________\n \n (Authorized representative) \n \n Nuclear Energy Liability Policy\n \n (Facility Form)\n \n Amendment of Transportation Coverage (Indemnified Nuclear Facility)\n \n It is agreed that the definition of  insured shipment  in Insuring Agreement III is amended to read:  insured shipment  means a shipment of source material, special nuclear material, spent fuel or waste, herein called  material,  (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation. \n \n Effective date of this endorsement ______ to form a part of Policy No. ______. \n \n Issued to ______________________________\n \n Date of Issue __________________________. \n \n For the subscribing companies. \n \n \n \n By ______________________________\n \n Countersigned by __________________________\n \n Endorsement No. ______________. \n \n Optional Amendatory Endorsement\n \n (Facility Form) \n \n It is agreed that: \n \n I. The first sentence of the definition of nuclear facility is amended to read: \n \n nuclear facility  means  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by __________ or by ________________. \n \n II. The definition of  indemnified nuclear facility  is replaced by the following: \n \n indemnified nuclear facility  means \n \n (1)  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by ________ or by ________ or \n \n (2) any other nuclear facility, \n \n if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; with respect to any activities or operations conducted thereat: \n \n III. Condition 4 is replaced by the following: \n \n Limitation of liability; common occurrence. Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive, or other hazardous properties of \n \n (a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by ____________ or, \n \n (b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by ________________. \n \n shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard. \n \n With respect to such bodily injury and property damage (1) the total aggregate liability of the members of ________, under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $________;\n 1 \n   (2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the members of ________, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members the limit of liability of each such policy being as determined by Condition 3 thereof. \n \n \n \n 1  For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be \u201c$124,000,000,\u201d for policies issued by Mutual Atomic Energy Liability Underwriters, the amount will be \u201c$36,000,000.\u201d \n The provisions of this condition shall not operate to increase the limit of the companies' liability under this policy. \n \n IV. The second paragraph of Condition 12  Other Insurance  is amended to read: \n \n If the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by ________ or to any person or organization) applicable to loss or expense covered by this policy the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.  \n \n Nuclear Energy Liability Policy \n \n (Facility Form) \n \n Restoration of Limit of Liability Endorsement\n \n It is agreed that: \n \n 1. Payments made by the companies under this policy have reduced the limit of the companies' liability, stated in Item 4 of the declarations, to $________. \n \n 2. Such reduced limit is restored to the amount stated in Item 4 of the declarations. Such restored limit applies to obligations assumed or expenses incurred because of bodily injury or property damage caused during the period from the effective date of this endorsement to the termination of the policy, by the nuclear energy hazard. \n \n \n Note: \n When the reduction of the limit of liability results from a clearly identifiable nuclear event and restoration is offered retroactive to the effective date of the policy for claims other than those resulting from said event, above paragraph 2 will be replaced by the following: \n \n 2. Such reduced limit is restored to the amount stated in Item 4 of the declarations, except with respect to bodily injury or property damage resulting from (describe nuclear event). \n 3. The reduced limit of liability stated in paragraph 1 above, and the limit of liability stated in Item 4 of the declarations, as restored by this endorsement, shall not be cumulative; and each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment both the reduced limit of liability stated in paragraph 1 above and the limit of liability stated in Item 4 of the declarations, as restored by this endorsement, regardless of which limit of liability applies with respect to bodily injury or property damage out of which such loss or expense arises. \n \n Effective date of this endorsement ______to form a part of Policy No. ________\n \n Issued to ____________. \n \n Date of Issue ____________. \n \n For the subscribing companies\n \n \n \n By ________________\n \n Countersigned by __________________________\n \n Endorsement No. ______. \n \n Nuclear Energy Liability Policy \n \n (Facility Form) \n \n Amendatory Endorsement\n \n This policy does not apply to bodily injury or property damage with respect to which the insured is entitled to indemnity from the United States Nuclear Regulatory Commission under the provisions of Indemnity Agreement No. ______ between the United States Nuclear Regulatory Commission and __________, dated __________, as now in effect or as hereafter amended. \n  \n Effective date of this endorsement to form a part of Policy No. \n \n Issued to __________. \n \n Date of issue __________. \n \n For the subscribing companies ________\n \n By __________________________\n \n Countersigned by ____________________________\n \n Endorsement No. ______. \n \n Nuclear Energy Liability Policy\n \n (Facility Form) \n \n Waiver of Defenses Endorsement\n \n (Extraordinary Nuclear Occurrence) \n \n The named insured, acting for himself and every other insured under the policy, and the members of ________________________ agree as follows: \n \n 1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which\u2014\n \n (a) Arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or \n \n (b) Arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive \n \n (1) Any issue or defense as to the conduct of the claimant or the fault of the insureds, including, but not limited to: \n \n (i) Negligence, \n \n (ii) Contributory negligence, \n \n (iii) Assumption of risk, and \n \n (iv) Unforeseeable intervening causes whether involving the conduct of a third person or an act of God, \n \n (2) Any issue or defense as to charitable or governmental immunity, and \n \n (3) Any issue or defense based on any statue of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than 10 years after the date of the nuclear incident.\n \n The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. \n \n 2. The waivers set forth in paragraph 1 above do not apply to \n \n (a) Bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; \n \n (b) Bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law; \n \n (c) Any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law. \n \n 3. The waivers set forth in paragraph 1 above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement. \n \n Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under\u2014\n \n (1) The provisions of the policy applicable to the financial protection required of the named insured, \n \n (2) The agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended, and \n \n (3) The limit of liability provisions of subsection 170 e. of the Atomic Energy Act of 1954, as amended. \n \n Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages. \n \n 4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1 above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection. \n \n 5. As used herein: \n \n Extraordinary nuclear occurrence  means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended,  financial protection  and  nuclear incident  have the meanings given them in the Atomic Energy Act of 1954, as amended. \n \n Claimant  means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage. \n \n Nuclear Energy Liability Policy\n \n (Facility Form) \n \n Amendatory Endorsement\n \n (Application of Policy) \n \n It is agreed that insuring agreement IV of the policy, captioned  Application of Policy  is amended to read as follows: Application of Policy. This policy applies only to bodily injury or property damage: (1) Which is caused during the policy period by the nuclear energy hazard, and (2) which is discovered and for which written claim is made against the insured, not later than 10 years after the end of the policy period. \n \n Nuclear Energy Liability Policy \n \n (Facility Form) \n \n Waiver of Defense Endorsement \n \n (Extraordinary Nuclear Occurrence)\n \n The named insured, acting for himself and every other insured under the policy, and the members of \n \n agree as follows:\n \n 1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which \n \n (a) Arises out of or results from or occurs in the course the construction, possession, or operation of the facility, or \n \n (b) Arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility.\n \n the insured and the companies agree to waive. \n \n (1) Any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to: \n \n (i) Negligence, \n \n (ii) Contributory negligence, \n \n (iii) Assumption of risk, and \n \n (iv) Unforeseeable intervening causes, whether involving the conduct of a third person, or an act of God, \n \n (2) Any issue or defense as to charitable or governmental immunity, and \n \n (3) Any issue or defense based on any statute of limitations if suit is instituted within three (3) years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than twenty (20) years after the date of the nuclear incident.\n \n The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. \n \n 2. The waivers set forth in paragraph 1. above do not apply to \n \n (a) Bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; \n \n (b) Bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law; \n \n (c) Any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law. \n \n 3. The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement; provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence. Insuring Agreement IV, \u201cApplication of Policy,\u201d shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence. \n \n Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under \n \n (a) The provisions of the policy applicable to the financial protection required of the named insured; \n \n (b) The agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended; and \n \n (c) The limit of liability provisions of Subsection 170e. of the Atomic Energy Act of 1954, as amended. \n \n Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages. \n \n 4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection. \n \n 5. As used herein: \n \n Extraordinary nuclear occurrence  means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended. \n \n Financial protection  and  nuclear incident  have the meanings given them in the Atomic Energy Act of 1954, as amended. \n \n Claimant  means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage. \n \n Effective date of this endorsement ________________________ to form a part of Policy No. ______________, \n \n  12:01 A.M. Standard Time\n \n Issued to __________________________________. \n \n Date of issue ______________.\n \n Endorsement No. ______________.\n \n For the subscribing companies:\n \n        By ______________________,\n \n          General Manager\n \n  Countersigned by ________________________.\n \n Supplementary Endorsement Waiver of Defenses \n \n Reactor Construction at the Facility \n \n It is agreed that in construing the application of paragraph 2.(b) of the Waiver of Defenses Endorsement (NE-33a) with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if: \n \n (1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility and \n \n (2) No operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and \n \n (3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility. \n \n Effective date of this endorsement ________________________ to form a part of Policy No. ______________. \n \n  12:01 A.M. Standard Time\n \n Issued to __________________________________. \n \n Date of issue ______________. \n \n Endorsement No ______________.\n \n For the subscribing companies:\n \n        By ______________________,\n \n          General Manager\n \n  Countersigned by ______________________.\n \n Nuclear Energy Liability Policy \n \n (Facility Form) \n \n Amendment of Definition of  Nuclear Energy Hazard  (Indemnified Nuclear Facility) \n \n It is agreed that: 1. Solely with respect to an  insured shipment  to which the policy applies as proof of financial protection required by the Nuclear Regulatory Commission, subdivision (2) of the definition of  nuclear energy hazard  is amended to read: \n \n (2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including handling and temporary storage incidental thereto, within \n \n (a) The territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or \n \n (b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency. \n \n 2. As used herein,  financial protection  has the meaning given it in the Atomic Energy Act of 1954, as amended. \n \n Instructions \u2014This form is to be used to modify all Nuclear Energy Liability Facility Forms in force on January 1, 1977 which were issued to become effective prior to January 1, 1977 and which are offered by the named insured as proof of financial protection being maintained as required by the Atomic Energy Act of 1954, as amended. \n \n Effective date of this Endorsement ________________________ To form a part of Policy No. ______________.\n \n 12:01 A.M. Standard Time \n \n Issued to __________________________________\n \n Date of issue ______________.\n \n Endorsement No. ______________.\n \n For the subscribing companies:\n \n        By ______________________, \n \n          General Manager\n \n  Countersigned by ________________________.\n \n Nuclear Energy Liability Policy \n \n (Facility Form) \n \n Amendment of Definitions of  Nuclear Energy Hazard  and  Insured Shipment  (Indemnified Nuclear Facility) \n \n It is agreed that: I. In Insuring Agreement III,  DEFINITIONS  \n \n A. Solely with respect to an  insured shipment  to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission, Subdivision (2) of the definition of  nuclear energy hazard  is amended to read: \n \n (2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within \n \n (a) The territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or \n \n (b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except for a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency. \n \n B. The definition of  insured shipment  is replaced with the following: \n \n Insured shipment  means a shipment of source material, special nuclear material, spent fuel or waste, herein called  material,  (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation. \n \n II. As used herein,  financial protection  has the meaning given it in the Atomic Energy Act of 1954, as amended. \n \n Instructions \u2014This form is to be used to modify all Nuclear Energy Liability Facility Forms which are issued to become effective on or after January 1, 1977 and which are offered by the named insured as proof of financial protection being maintained as required by the Atomic Energy Act of 1954, as amended. \n \n Effective date of this endorsement ____________________ To form a part of Policy No. ______________.\n \n 12:01 A.M. standard time \n \n Issued to ________________________. \n \n Date of issue ______________.\n \n Endorsement No. ______________.\n \n For the subscribing companies:\n \n       By ________________________,\n \n          General Manager.\n \n Countersigned by ______________________. \n \n NE-50 (1/1/80), Amendatory Endorsement\n \n (Indemnified Nuclear Facility)\n \n It is agreed that:\n \n I. In Insuring Agreement III:\n \n DEFINITIONS \n \n A. The first sentence of the definition of  nuclear facility  is amended to read:  nuclear facility  means  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters.\n \n B. The definition of  indemnified nuclear facility  is replaced by the following:  indemnified nuclear facility  means\n \n (1)  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters, or\n \n (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat;\n \n C. Solely with respect to an  insured shipment  to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission. Subdivision (2) of the definition of  nuclear energy hazard  is amended to read:\n \n (2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within\n \n (a) The territorial limits of the United States of America, its territories or possessions, or Puerto Rico; or Canal Zone; or\n \n (b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.\n \n D. The definition of  insured shipment  is replaced with the following:\n \n insured shipment  means shipment of source material, special nuclear material, spent fuel or waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called  material,  (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.\n \n E. As used herein,  financial protection  has the meaning given it in the Atomic Energy Act of 1954, as amended.\n \n II. Insuring Agreement IV is replaced by the following:\n \n IV. APPLICATION OF POLICY. This policy applies only to bodily injury or property damage (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured, not later than ten years after the end of the policy period.\n \n III. Condition 2 is replaced by the following:\n \n 2. INSPECTION: SUSPENSION. The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of noncompliance with such request, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuation of such dangerous condition, and to the United States Nuclear Regulatory Commission, suspend this insurance with respect to named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.\n \n Neither the right to make such inspections and examinations nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation. In consideration of the issuance or continuation of this policy, the insured agrees that neither the companies nor any pesons or organizations making such inspections or exminations on their behalf shall be liable with respect to injury to or destruction of property at the facility, or any consequential loss or expense resulting therefrom, or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers.\n \n IV. Condition 4 is replaced by the following:\n \n 4. LIMITATION OF LIABILITY: COMMON OCCURRENCE. Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of \n \n (a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of the properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association, or \n \n (b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by Nuclear Energy Liability Insurance Association, shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.\n \n With respect to such bodily injury and property damage (1) the total aggregate liability of the members of the Nuclear Energy Liability Insurance Association under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $124,000,000; (2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the members of Nuclear Energy Liability Insurance Association, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members, the limit of liability of each such policy being as determined by Condition 3 thereof.\n \n The provisions of this condition shall not operate to increase the limit of the companies' liability under this policy.\n \n V. The second paragraph of Condition 12,  Other Insurance,  is amended to read:\n \n If the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters to any person or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.\n \n VI. Paragraph (c) of Condition 16,  Company Representation,  is amended to read:\n \n (c) Nuclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy to be given to the companies may be given to such agent, at its office at the Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut 06032, with the same force and effect as if given directly to the companies. Any requests, demand or agreements made by such agent shall be deemed to have been made directly by the companies.\n \n Effective Date of this Endorsement ________ 12:01 a.m. Standard Time to form a part of policy No. ______.\n \n Issued to ________ For the subscribing companies.\n \n Date of Issue ________.\n \n By ________ General Manager.\n \n Endorsement No.\n \n NE-50 (1/1/81)\n \n NE-51 (1/1/81)\u2014Amendment of Definition of Condition 2  Inspection; Suspension  and  Insured Shipment \n \n (Indemnified Nuclear Facility)\n \n It is agreed that:\n \n (1) Condition 2  Inspection; Suspension  is replaced by the following:\n \n 2. Inspection; Suspension. The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such conditions be corrected without delay. In the event of noncompliance with such requests, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuation of such dangerous condition, and to the United States Nuclear Regulatory Commission, suspend this insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.\n \n Neither the right to make such inspections and examinations nor the making thereof nor advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation. In consideration of the issuance or continuation of this policy, the insured agrees that neither the companies nor any persons or organizations making such inspections or examinations on their behalf shall be liable with respect to injury to or destruction of property at the facility, or any consequential loss or expense resulting therefrom, or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers.\n \n (2) The definition of  insured shipment  in Insuring Agreement III,  Definitions,  is replaced by the following:  insured shipment  means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content herein called  material,  (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.\n \n Effective Date of this Endorsement ________ 12:01 a.m. Standard Time to form a part of Policy No. ______\n \n Issued to ________ For the subscribing companies.\n \n Date of Issue ________.\n \n By ________ General Manager.\n \n Endorsement No.\n \n NE-51 (1/1/81)\n \n Amendment of Coverage Endorsement for Workers Claims \n \n (Facility Form)\n \n NE-64(1/1/88)\n \n Preamble\n \n 1. The insurance and rating plan presently used by Nuclear Energy Liability Insurance Association ( NELIA ) and Mutual Atomic Energy Liability Underwriters ( MAELU ) do not make a distinction between workers claims arising from catastrophic events and those arising from lesser events;\n \n 2. NELIA and MAELU believe that the lack of such a distinction will adversely affect their ability to continue to attract from world markets very large amounts of nuclear energy liability insurance for the nuclear industry;\n \n 3. NELIA and MAELU want to avoid this potential loss of capacity and to continue to provide nuclear energy liability insurance for workers claims. Accordingly NELIA and MAELU desire to restructure their present insurance programs, including this policy, effective January 1, 1988.\n \n Now, Therefore, the Named Insured and the companies do hereby agree as follows:\n \n 1. Definitions\n \n When used in reference to this endorsement:\n \n This policy  means the policy of which this endorsement forms a part;\n \n Nuclear related employment  means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility. All of a worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;\n \n Worker  refers to a person who is or was engaged in nuclear related employment;\n \n Workers claims  means claims for damages because of bodily injury to a worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the worker's nuclear related employment;\n \n Extraordinary nuclear occurrence  means an event which the United States Nuclear Regulatory Commission has determined to be an  extraordinary nuclear occurrence  as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.\n \n 2. Application of This Endorsement\n \n This endorsement applies only to such insurance as is afforded by this policy for workers claims which do not arise in whole or in part out of an extraordinary nuclear occurrence.\n \n 3. Exclusion of New Workers Claims\n \n This policy does not apply to bodily injury to a worker which arises in whole or in part out of nuclear related employment that begins on or after January 1, 1988.\n \n 4. Application of Policy to Workers Claims Not Excluded\n \n With respect to such insurance as is afforded by this policy for workers claims which are not excluded, Insuring Agreement IV does not apply and the following Insuring Agreement IV-A does apply:\n \n IV-A Application of Policy to Workers Claims.  This policy applies only to bodily injury (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured not later than the close of December 31, 1997.\n \n 5. Availability of Supplemental Insurance\n \n NELIA and MAELU are offering to make insurance under one or more Master Worker Policies available to all holders of Nuclear Energy Liability Policies (Facility Form).  This offer is contingent on sufficient support from policy holders, and may be withdrawn or modified by Nelia or Maelu as they deem necessary or appropriate. \n \n The Master Workers Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plan.\n \n Coverage under the new master worker policies is not automatic. A written request must be submitted to Nelia or Maelu through regular market channels. \n \n It is understood and agreed that all of the provisions of this endorsement shall remain in full force and effect without regard to this section 5, and without regard to whether or not the Named Insureds become insureds under the Master Worker Policies, or whether or not NELIA or MAELU terminate such policies or withdraw or modify their offer to underwrite such policies.\n \n Executed for the companies\n \n Date\n \n By\n \n (Signature or Authorized Officer)\n \n \n \n (Print or Type Name and Title of Officer)\n \n Executed for the Named Insured\n \n \n \n (Named Insured\u2014Type or Print)\n \n Date\n \n By\n \n (Signature of Authorized Officer)\n \n \n \n (Print or Type Name and Title of Officer)\n \n Effective Date of this Endorsement\n \n \n \n 12:01 a.m. Standard Time\n \n To form a part of Policy No.\n \n Issued to\n \n Date of Issue\n \n For the subscribing companies\n \n By\n \n General Manager\n \n Endorsement No.\n \n Countersigned by\n \n AMENDMENT OF COVERAGE ENDORSEMENT FOR WORKERS CLAIMS (Facility Form) NE-66(1/1/88)\n \n It is agreed that:\n \n 1. Definitions\n \n When used in reference to this endorsement:\n \n This policy  means the policy of which this endorsement forms a part;\n \n Nuclear related employment  means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility. All of a worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;\n \n Worker  refers to a person who is or was engaged in nuclear related employment;\n \n Workers claims  means claims for damages because of bodily injury to a worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the worker's nuclear related employment;\n \n Extraordinary nuclear occurrence  means an event which the United States Nuclear Regulatory Commission has determined to be an  extraordinary nuclear occurrence  as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.\n \n 2. Application of This Endorsement\n \n This endorsement applies only to such insurance as is afforded by this policy for workers claims which do not arise in whole or in part out of an extraordinary nuclear occurrence.\n \n 3. Exclusion of New Workers Claims\n \n This policy does not apply to bodily injury to a worker which arises in whole or in part out of nuclear related employment that begins on or after January 1, 1988.\n \n 4. Application of Policy to Workers Claims Not Excluded\n \n With respect to such insurance as is afforded by this policy for workers claims which are not excluded, Insuring Agreement IV does not apply and the following Insuring Agreement IV-A does apply:\n \n IV-A Application of Policy to Workers Claims\n \n This policy applies only to bodily injury (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured not later that the close of December 31, 1997.\n \n 5. Availability of Supplemental Insurance\n \n NELIA and MAELU are offering to make insurance under one or more Master Worker Policies available to all holders of Nuclear Energy Liability Policies (Facility Form).  This offer is contingent on sufficient support from policyholders, and may be withdrawn or modified by NELIA or MAELU as they deem necessary or appropriate. \n \n The Master Worker Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plan.\n \n Coverage under the new master worker policies is not automatic. A written request must be submitted to NELIA or MAELU through regular market channels. \n \n It is understood and agreed that all of the provisions of this endorsement shall remain in full force and effect without regard to this Section 5, and without regard to whether or not the Named Insureds become insureds under the Master Worker Policies, or whether or not NELIA or MAELU terminate such policies or withdraw or modify their offer to underwrite such policies.\n \n Explanation of Use of This Endorsement:  This endorsement is a mandatory endorsement which is to be attached to new Facility Form Policies issued on or after January 1, 1988.\n \n Effective Date of this Endorsement\n \n \n \n 12:01 a.m. Standard Time\n \n To form a part of Policy No.\n \n Issued to\n \n Date of Issue\n \n For the subscribing companies\n \n By\n \n General Manager\n \n Endorsement No.\n \n Countersigned by\n \n NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION\n \n Nuclear Energy Liability Policy\n \n Facility Worker Form, herein called Master Worker Policy, NMWP-1(1/1/88)\n \n The undersigned members of Nuclear Energy Liability Insurance Association, hereinafter called the  companies,  each itself severally and not jointly, and in the respective proportion hereinafter set forth, agree with the insureds named in Item 1 of the Declarations of each Certificate, hereinafter called the  Named Insureds,  in consideration of the payment of the premium, and subject to all of the provisions of the applicable Certificate and of this policy, as follows:\n \n I\u2014Relation Between the Master Worker Policy and Certificates\n \n No insurance is provided by this policy except through a Certificate issued to form a part hereof. The insurance then applies separately to the persons and organizations who are defined in Section IV as insureds under each such Certificate, except with respect to the Amount of Insurance Available.\n \n The Amount of Insurance Available through such a Certificate to any person or organization who is an insured thereunder is limited as provided in Section VIII of this policy.\n \n II\u2014Definitions\n \n When used in reference to this policy:\n \n Bodily injury  means bodily injury, sickness or disease, including death resulting therefrom;\n \n Byproduct material  has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof;\n \n Certificate,  unless qualified, refers to a Certificate of Insurance (including Declarations and endorsements forming a part thereof) issued to form a part of this policy or of a MAELU Policy;\n \n Claims costs  means, with reference to claims or suits the companies have the right and duty to defend under this policy;\n \n (1) Cost taxed against the insured in such suits and interest on any judgments therein;\n \n (2) Premiums on appeal bonds and on bonds to release attachments in such suits (but the companies have no obligation to apply for or furnish such bonds;\n \n (3) Reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request;\n \n (4) Payments for expenses incurred in the investigation, negotiation, settlement and defense of such claims or suits, including, but not limited to, the cost of such allocated claims services by employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, examination, x-ray or autopsy or medical expenses of any kind;\n \n (5) Payments for expenses incurred by the companies in investigating an occurrence resulting in bodily injury or in minimizing its effects;\n \n Discovery period  means the period defined in Section VI B hereof;\n \n Extraordinary nuclear occurrence  means an event which the United States Nuclear Regulatory Commission has determined to be an  extraordinary nuclear occurrence  as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof;\n \n Insured contract  means that part of a contract or agreement made prior to bodily injury to a new worker under which the insured assumes the tort liability of a third person to pay damages because of such bodily injury.  Tort liability  means a liability that would be imposed by law on the third person in the absence of an express assumption of liability by the third person;\n \n Insured facility  means a facility with respect to which insurance is provided through a Certificate;\n \n Insured shipment  means a shipment of source material, special nuclear material, spent fuel or waste (herein called  material ):\n \n (1) To the facility from any location other than an insured facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation; or\n \n (2) From the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation;\n \n MAELU  means Mutual Atomic Energy Liability Underwriters;\n \n MAELU Policy  means a Nuclear Energy Liability Policy (Facility Worker Form) written by members of MAELU;\n \n NELIA  means Nuclear Energy Liability Insurance Association;\n \n New worker  refers to a person who is or was engaged in nuclear related employment that begins on or after January 1, 1988;\n \n New worker's claim  means a claim for damages because of bodily injury to a new worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the new worker's nuclear related employment;\n \n Non-ratable incurred losses  has the meaning given in Attachment 1 to this policy;\n \n Nuclear energy hazard  means the radioactive, toxic, explosive or other hazardous properties of nuclear material which is:\n \n (1) At the facility as described in the applicable Certificate issued to form a part of this policy or has been discharged or dispersed therefrom without intent to relinquish possession of custody thereof to any other person or organization; or\n \n (2) In an insured shipment that is away from any other insured nuclear facility and is in the course of transportation, including handling and temporary storage incidental thereto within:\n \n (a) The territorial limits of the United States of America, its territories or possessions or Puerto Rico; or\n \n (b) International waters or airspace, provided that:\n \n (i) The nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above; and\n \n (ii) There are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except to a port or place of refuge in an emergency;\n \n Nuclear facility  means any of the following and includes the site on which any of them is located, all operations conducted on such site and all premises used for such operations:\n \n (1) The facility as described in any Certificate;\n \n (2) Any nuclear reactor;\n \n (3) Any equipment or device designed or used for:\n \n (a) Separating the isotopes of uranium or plutonium;\n \n (b) Processing or utilizing spent fuel; or\n \n (c) Handling, processing or packaging waste;\n \n (4) Any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment of device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235;\n \n (5) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste;\n \n Nuclear material  means source material, special nuclear material or byproduct material;\n \n Nuclear reactor  means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material;\n \n Nuclear related employment  means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility.\n \n All of a new worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;\n \n Policy period  means the period defined in Section VI A hereof;\n \n Ratable incurred losses  has the meaning given in Attachment 1 to this policy;\n \n Source material  has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof, and also includes tailings or wastes produced by the extraction of uranium or thorium from ore processed primarily for its source material content;\n \n Special nuclear material  has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof;\n \n Spent fuel  means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor;\n \n The facility  refers to the facility described in the Declarations of a Certificate. It includes the location described in Item 3 thereof and all property and operations at such location;\n \n Waste  means any waste material that contains byproduct material and results from the operation by any person or organization of:\n \n (1) Any nuclear reactor; or\n \n (2) Any equipment or device designed or used for:\n \n (a) Separating the isotopes of uranium or plutonium;\n \n (b) Processing or utilizing spent fuel; or\n \n (c) Handling, processing or packaging such waste material.\n \n III\u2014Coverage\n \n In the event that a new worker's claim is made against a person or organization who is an insured under a Certificate issued to form a part of this policy:\n \n (1) The companies shall pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury to which this policy applies, sustained by a new worker and caused by the nuclear energy hazard.\n \n The companies shall have the right and duty to defend any suit against the insured alleging such injury and seeking damages payable under the terms of this policy. But the companies may make such investigation and settlement of any claim or suit seeking such damages as they deem appropriate. \n \n (2) The companies shall also pay, as part of the Amount of Insurance Available under this policy, the claims costs relating to any such claim or suit. \n \n (3) The companies' obligation to pay damages and claims costs, and to defend any claim and suit ends when the Policy Aggregrate Limit has been exhausted pursuant to the provisions of Section VIII. \n \n IV\u2014Definition of Insured \n \n When used in reference to a Certificate issued to form a part of this policy, the unqualified word  insured  means: \n \n (1) each insured named in Item 1 of the Declarations of the Certificate; and \n \n (2) any other person or organization with respect to legal responsibility for damages because of bodily injury to a new worker caused by the nuclear energy hazard applicable to the Certificate. This subsection (2) does not include as an insured the United States of America or any of its agencies except the Tennessee Valley Authority. \n \n V\u2014Exclusions \n \n This policy does not apply: \n \n (1) To any obligation for which the insured or any carrier as his insurer may be held liable under any worker's compensation, unemployment compensation or disability benefits law, or under any similar law; \n \n (2) To bodily injury to any employee of the insured arising out of or in the course of employment by the insured; but this exclusion (2) does not apply to liability assumed by the insured under an insured contract; \n \n (3) To liability assumed by the insured under contract, other than an insured contract; \n \n (4) To bodily injury to a new worker due to the manufacturing, handling or use at the location designated in Item 3 of the Declarations of any Certificate, in time of peace or war, of any nuclear weapon or other instrument of war utilizing special nuclear material or byproduct material; \n \n (5) To bodily injury to a new worker due to war, whether or not declared, civil war, insurrection, rebellion or revolution, or to any act or condition incident to any of the foregoing; \n \n (6) To bodily injury to a new worker arising in whole or in part out of an extraordinary nuclear occurrence. \n \n VI\u2014Policy Period; Discovery Period; Application of Policy \n \n A. Policy Period \n \n The policy period of this policy begins at 12:01 a.m. on January 1, 1988 and ends at the close of December 31, 1992, Eastern Standard Time, or when all Certificates issued to form a part hereof have been cancelled, whichever first occurs. \n \n B. Discovery Period \n \n The discovery period for claims made under this policy begins at 12:01 a.m. on January 1, 1988 and ends at the close of December 31, 1997, Eastern Standard Time. \n \n C. Application of Policy \n \n This policy applies only to bodily injury to a new worker (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is first made against the insured within the discovery period. \n \n VII\u2014Other Insurance \n \n A. This insurance is primary insurance under any insurance afforded by a Master Policy-Nuclear Energy Liability Insurance (Secondary Financial Protection) issued by NELIA or MAELU. \n \n B. If an insured has other valid and collectible insurance, except under a MAELU Policy, for loss or expense covered by this policy, this shall be excess insurance over such other insurance. If the insured has insurance under a MAELU Policy, whether the insurance is collectible or not, the companies shall then be liable under this policy only for such proportion of loss or expense as the amount stated as the Policy Aggregate Limit in Section VIII of this policy bears to the sum of such amount and the corresponding amount stated in the MAELU Policy. \n \n VIII\u2014Amount of Insurance Available \n \n A. Policy Aggregate Limit \n \n 1. The Policy Aggregate Limit is $124 million. This limit is not cumulative from year to year. The limit applies to all new worker's claims that qualify for coverage under this policy (herein called  qualified claims ). \n \n 2. The Policy Aggregate Limit applies collectively to all new worker's claims. Such claims may be paid by NELIA on behalf of the companies as the claims, in NELIA's discretion, become ready for disposition, and claims costs may be paid as they become due, all without regard to the order in which such claims were made and without any obligation to maintain, reserve or use any portion of the Policy Aggregate Limit for claims reported under any particular Certificate. \n \n B. Limitation of the Companies' Liability \n \n 1. Regardless of the number of (a) Certificates issued to form a part of this policy, (b) persons and organizations who are insureds under such Certificates, (c) qualified claims, or (d) years this policy or any such Certificates shall continue in force, the Policy Aggregate Limit is the total liability of the companies for all of their obligations under this policy, including the defense of suits and the payment of damages and claims costs. \n \n 2. This policy provides for certain automatic reinstatements of the Policy Aggregate Limit. Regardless of such provision, if, during the policy period or thereafter, the total payments of the companies for \n \n (a) Non-ratable incurred losses, and \n \n (b) Those ratable incurred losses for which the companies have not been reimbursed under the Industry Retrospective Rating Plan Premium Endorsement described in Attachment 1 to this policy, \n \n equal $124 million, the Policy Aggregate Limit shall be deemed to be exhausted, and shall not be further reinstated except by an endorsement issued to form a part of this policy for additional premium as determined by the companies. \n \n C. Reduction and Reinstatement of the Policy Aggregate Limit \n \n 1. Each payment made by the companies in discharge of their obligations under this policy shall reduce the Policy Aggregate Limit by the amount of such payment. \n \n 2. The companies shall, however, automatically reinstate the policy aggregate limit until the total amount of such reinstatements equals $124 million, but in no event shall there be any automatic reinstatements after the Policy Aggregate Limit is exhausted pursuant to the provisions of subsection B.2. above. Thereafter, there shall be no further reinstatement of the Policy Aggregate Limit except by an endorsement issued to form a part of this policy for additional premium as determined by the companies. \n \n 3. It is a condition of this insurance that the companies shall have the right to reimburse themselves, as a matter of first priority, from funds held by NELIA in the Special Reserve Account described in Attachment 1 to this policy or from retrospective premiums received by NELIA for this insurance. The amount of reimbursement shall be equal to 95% of each payment made by the companies with respect to their obligations under this policy. \n \n IX\u2014Insured's Duties in Case of Claims or Suits \n \n A. Notice of Claims or Suits\n \n In the event of any claim or suit involving bodily injury to which a Certificate issued to form a part of this policy applies, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof shall be given by or for the insured to the companies as soon as practicable. The insured shall immediately forward to the companies every demand, notice, summons or other process received relating to claims or suits against the insured. \n \n B. Assistance and Cooperation \n \n The insured shall cooperate with the companies and, upon their request, shall: \n \n (1) Attend hearings and trials; and \n \n (2) Assist in making settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of any legal proceedings in connection with the subject matter of this insurance. \n \n The insured shall not, except at the insured's own cost, make any payment, assume any obligation or incur any expense. \n \n X\u2014Subrogation \n \n In the event of any payment through a Certificate to form a part of this policy, the companies shall be subrogated to all the insured's rights of recovery therefor against any person or organization, and the insured shall execute and deliver instruments and papers, and so whatever else is necessary to secure such rights. Prior to knowledge of bodily injury caused by the nuclear energy hazard the insured may waive in writing any or all right of recovery against any person or organization, but after such knowledge the insured shall not waive or otherwise prejudice any such right of recovery. \n \n The companies hereby waive any right of subrogation against (1) any other insured of (2) the United States of America or any of its agencies acquired by reason of any payment under this policy. \n \n It is a condition of this policy that if an insured makes a recovery on account of any such injury, the insured shall repay to the companies the amount to which the companies would have been entitled had the foregoing provisions, or any of them, not been included in the policy. \n \n XI\u2014Inspection and Suspension \n \n The companies shall be permitted, but not obligated, to inspect at any time the facility as described in any Certificate and all books, records and operation relating thereto, both with respect to this insurance, and any other nuclear energy liability insurance and property insurance also afford with respect thereto by members of NELIA, American Nuclear Insurers, MAELU or MAERP Reinsurance Association. \n \n If a representative of the companies discovers a condition which he or she believes to be unduly dangerous with respect to the risks insured under the Certificate, a representative of the companies may request such condition to be corrected without delay. In the event of noncompliance with the request, an officer of NELIA may, by written notice mailed or delivered to the first Named Insured, with similar notice to the United States Nuclear Regulatory Commission, suspend the insurance afforded by a Certificate issued by NELIA effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from NELIA to the first Named Insured that such condition has been corrected.\n \n Neither the right to make such inspections or suspensions nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the Named Insureds or others to determine or warrant that the facility or operations relating thereto are safe or healthful, or are in compliance with any law, rule or regulation.\n \n In consideration of the issuance or continuation of a Certificate, the Named Insureds agree that neither the companies nor any persons or organizations making such inspections on their behalf shall be liable for damage to the facility or any consequential damage or cost resulting therefrom, including but not limited to any such damage or cost relating to interruption of business or manufacture, arising out of the making of or failure to make any such inspection of the facility, any report thereon, or any such suspension of insurance, but this provision does not limit the companies' contractual obligations under a Certificate issued by NELIA or any policy issued by NELIA or American Nuclear Insurers affording the insured nuclear energy liability or property insurance.\n \n XII\u2014Cancellation of Certificates \n \n The first Named Insured designated in a Certificate issued to from a part of this policy any cancel such Certificate by mailing to the companies and the United States Nuclear Regulatory Commission written notice stating when, not less than 30 days thereafter, such cancellation shall be effective.\n \n The companies may cancel any such Certificate by mailing to the first Named Insured designated therein at the address shown in such Certificate and to the United States Nuclear Regulatory Commission written notice, stating when, not less than 90 days thereafter, such cancellation shall be effective; provided in the event of non-payment of premium, or if the operator of the facility, as designated in the Declarations of the Certificate, is replaced by another person or organization, such Certificate may be cancelled by the companies by mailing to the first Named Insured at the address shown therein and to the United States Nuclear Regulatory Commission written notice, stating when, not less than 30 days thereafter, such cancellation shall be effective.\n \n The mailing of notice as aforesaid shall be sufficient proof of notice. The effective date and hour of cancellation stated in the notice shall become the end of the Certificate period. Delivery of such written notice either by the first Named Insured or the companies shall be equivalent to mailing.\n \n Upon cancellation of a Certificate, other than as of the end of December 31 in any year, the earned standard premium for the period such Certificate has been in force since the preceding December 31 shall be computed in accordance with the following provisions:\n \n (1) If the first Named Insured cancels, the earned standard premium for such period shall be computed in accordance with the customary annual short rate table and procedure; provided, however, that if the first Named Insured cancels after knowledge of bodily injury caused by the nuclear energy hazard, all premiums theretofore paid or payable shall be fully earned;\n \n (2) If the companies cancel, the earned standard premium for such period shall be computed pro rata.\n \n Premium adjustment, if any, may be made either at the time of cancellation or as soon as practicable after cancellation becomes effective, but payment of tender of unearned premium is not a condition of cancellation.\n \n Cancellation of a Certificate shall not affect the rights and obligations of the Named Insureds under the Insureds under the Industry Retrospective Rating Plan Premium Endorsement forming a part of the Certificate.\n \n XIII\u2014General Conditions\n \n A. Premium\n \n The Named Insureds designated in a Certificate issued by NELIA shall pay the companies the premiums for the Certificate in accordance with the provisions of the  Industry Retrospective Rating Plan Premium Endorsement  described in Attachment 1 to this policy.\n \n B. Modifications, Waiver\n \n The provisions of this policy or a Certificate issued to form a part hereof shall not be changed or waived except by an endorsement issued by the companies to form a part of the policy or Certificate.\n \n C. Assignment\n \n Assignment of interest under a Certificate issued to form a part of this policy shall not bind the companies until their consent is endorsed thereon. If, however, a Named Insured shall die or be declared bankrupt or insolvent, the Certificate shall cover the Named Insured's legal representative, receiver or trustee as an insured, but only with respect to liability as such, and then only provided written notice of the appointment as legal representative, receiver or trustee is given to the companies within 10 days after such appointment.\n \n D. Suit\n \n No suit or action on a Certificate issued to form a part of this policy shall lie against the companies or any of them unless, as a condition precedent thereto, the insured shall have fully complied with all the terms of the policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the companies.\n \n Any person or organization or the legal representative thereof who has secured such judgment of written agreement shall thereafter be entitled to recover under the Certificate to the extent of the insurance afforded by this policy through the Certificate. No person or organization shall have any right under the Certificate to join the companies or any of them as parties to any action against the insured to determine the insured's liability, nor shall the companies or any of them be impleaded by the insured or the insured's legal representative.\n \n Bankruptcy or insolvency of the insured or the insured's estate shall not relieve the companies of any of their obligations under this policy.\n \n E. Authorization of The First Named Insured\n \n Except with respect to compliance with the obligations imposed on the insured by the Sections of this policy entitled  Insured's Duties in Case of Claims or Suits,  Subrogation and  Suit,  the first Named Insured designated in the Declarations of a Certificate issued to form a part of this policy is authorized to act for every other insured in all matters pertaining to this insurance.\n \n F. Insured Representation\n \n Any notice, sworn statement of proof of Loss which may be required by the provisions of this policy may be given to any one of the companies specified in the Schedule of Subscribing Companies attached hereto. Such notice, statement or proof of Loss so given shall be valid and binding on all such companies.\n \n In any action or suit against such companies, service of process may be made on any one of them and such service shall be valid and binding service on all such companies.\n \n Nuclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy may be given to such agent at its office at: Nuclear Energy Liability Insurance Association, The Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut 06032, with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies.\n \n G. Changes in Subscribing Companies and Their Proportionate Liability \n \n By acceptance of this policy the Named Insureds agree that the members of Nuclear Energy Liability Insurance Association liable under this policy, and the proportionate liability of each such member, may change from year to year, and further agree that regardless of such changes:\n \n (1) Each company subscribing this policy upon its issuance shall be liable only for its stated proportion of any obligation assumed or expense incurred under this policy because of bodily injury to new workers caused, during the period from the effective date of this policy to the close of December 31 next following, by the nuclear energy hazard; for each subsequent calendar year, beginning January 1 next following the effective date of this policy, any change in the subscribing companies and the proportionate liability of each such company shall be stated in an endorsement issued to form a part of this policy, duly executed and attested by the President of Nuclear Energy Liability Insurance Association on behalf of each such company, and a copy of which will be mailed or delivered to the first Named Insured of each Certificate.\n \n (2) The liability of any subscribing company shall not be cumulative from year to year.\n \n H. Declarations\n \n By acceptance of this Master Worker Policy, the Named Insureds designated in a Certificate agree that the statements in such Certificate are their agreements and representations, that this Master Worker Policy and such Certificate are issued in reliance upon the truth of such representations and that this Master Worker Policy and such Certificate embody all agreements between such Named Insureds and the companies or any of their agents relating to this insurance.\n \n In Witness Whereof,  the companies subscribing this policy have caused the policy to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly countersigned by an authorized representative, but this policy shall be binding on each company only to the extent of its designated proportion of any obligation assumed or expense incurred under this policy.\n \n For the Subscribing Companies:\n \n Date of Issue: ________ 19____\n \n \n \n Countersigned by: (Authorized Representative)\n \n NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION\n \n Nuclear Energy Liability Policy\n \n (Facility Worker Form) herein called the Master Worker Policy\n \n Certificate of Insurance, NMWPC-1(1/1/88)\n \n Certificate No. ______\n \n This is to certify that the insured named in Item 1 of the Declarations hereof, hereinafter called the  Named Insureds,  have obtained insurance under the Master Worker Policy issued by Nuclear Energy Liability Insurance Association on behalf of its members. The insurance is subject to all of the provisions of the  Certificate  and the Master Worker Policy.\n \n 1\u2014Declarations\n \n Item 1.\u2014Named Insureds and Addresses:\n \n Item 2.\u2014Certificate Coverage Period:\n \n Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.\n \n Item 3.\u2014Description of the Facility:\n \n Location: \n \n Type: \n \n Operator of the Facility: \n \n Item 4.\u2014Amount of Insurance Available:\n \n The amount of insurance afforded by the Master Worker Policy through this Certificate shall be determined by Section VIII of the Master Worker Policy and all of the other provisions of the policy relating thereto.\n \n Item 5.\u2014Advance Premium: $\n \n 2\u2014Application of Certificate\n \n This Certificate applies only to bodily injury to a new worker (1) which is caused, during the Certificate Coverage Period, by the nuclear energy hazard and (2) which is discovered and for which written claim is first made against an insured under the Certificate within the discovery period of the Master Worker Policy.\n \n 3\u2014Industry Retrospective Rating Plan\n \n All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies. No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium Endorsement and a copy of the signed endorsement has been issued by the companies to form a part of this Certificate.\n \n In Witness Whereof,  the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly countersigned by an authorized representative.\n \n For the Subscribing Companies:\n \n Date of Issue __________ 19 ______\n \n Countersigned by:\n \n (Authorized Representative)\n \n NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION\n \n Nuclear Energy Liability Insurance\n \n Industry Retrospective Rating Plan Premium Endorsement, NE-W-1(1/1/88)\n \n It is agreed that:\n \n 1. Definitions\n \n With reference to the premium for the Certificate of which this endorsement forms a part:\n \n Master Worker Policy  means the Master Worker Policy issued by NELIA;\n \n Certificate Holder  means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy;\n \n Advance premium,  for any calendar year, is the estimated standard premium for that calendar year;\n \n Standard premium,  for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance. Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospective adjustment;\n \n Reserve premium  means that portion of the premium for a Certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retrospective Rating Plan for ratable incurred losses;\n \n Industry reserve premium,  for any period, is the sum of the reserve premiums for that period for all Certificates issued to form a part of the Master Worker Policy;\n \n Retrospective adjustment ratio,  for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period;\n \n Incurred losses  means the sum of all:\n \n (1) Losses and expenses paid by NELIA, and\n \n (2) Reserves for losses and expenses as estimated by NELIA, because of obligations assumed and expenses incurred in connection with such obligations by the members of NELIA under the Master Worker Policy;\n \n Ratable incurred losses  means 95% of incurred losses. Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums;\n \n Non-ratable incurred losses  means 5% of incurred losses. Nonratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums;\n \n Reserve for refunds,  as of any date, is the algebraic difference between:\n \n (1) All industry reserve premium for the period from January 1, 1988 through such date, minus\n \n (2) The total for the same period of (a) all ratable incurred losses and (b) all industry reserve premium refunds made under the Industry Retrospective Rating Plan by members of NELIA;\n \n Industry reserve premium charge,  for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates;\n \n Reserve premium charge  means the portion of an industry reserve premium charge payable by the Named Insureds under Certificates;\n \n Industry reserve premium refund  for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates;\n \n Reserve premium refund  means the portion of an industry reserve premium refund returnable to the Named Insureds under this Certificate.\n \n 2. Payment of Advance and Standard Premiums\n \n The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.\n \n The advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon as practicable prior to or after the beginning of the year.\n \n As soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the Standard Premium exceeds the Advance Premium paid for that year, the Named Insureds shall pay the excess to the companies; if less, the companies shall return to the Named Insureds the excess portion paid.\n \n The Named Insureds shall maintain records of the information necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certificate Coverage Period and at such other times as the companies may direct.\n \n 3. Special Reserve Account; Use of Reserve Premiums\n \n NELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:\n \n (1) To pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of NELIA subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced;\n \n (2) To refund any amounts so held to the Named Insureds, as provided in Section 4.\n \n No members of NELIA and no Named Insureds shall have any individual interest in or claim upon amounts held in the special Reserve Account, except to participate proportionally in any refund or reimbursement provided for above.\n \n All reserve premiums paid or payable for this certificate may be used by NELIA to discharge the obligations of its members under the Master Worker Policy with respect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.\n \n 4. Payment of Reserve Premium Charges and Refunds\n \n As soon as practicable after each December 31 the companies will review the status of the reserve for refunds and report their findings to all Certificate Holders.\n \n If, at any time, the companies find that there is negative balance in the reserve for refunds and that such condition is likely to prevail, they shall determine an appropriate industry reserve premium charge. Similarly, if the companies find that there is a surplus positive balance, they shall determine an appropriate industry reserve premium refund.\n \n The portion of an industry reserve premium charge or an industry reserve premium refund that is:\n \n (1) Payable by the Named Insureds as a reserve premium charge, or \n \n (2) Due such insureds as reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.\n \n The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement. The charge shall be paid promptly after receipt of the endorsement.\n \n When all claims covered by the Master Worker Policy are closed the companies shall make a final review and report, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.\n \n 5. Final Premium \n \n The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve premiums, including all reserve premium charges, minus (c) the sum of all reserve premium refunds.\n \n 6. Reserve Premium Charge Agreement\n \n In consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of NELIA under the Master Worker Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:\n \n (1) That the insurance provided by the Master Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy. \n \n (2) That the right of each Named Insured under a Certificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination. \n \n (3) To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge. \n \n Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of interest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date. Any reserve premium refund due to Named Insureds under a Certificate shall be used to pay any overdue reserve premium charges to such Named Insureds. \n \n 7. Reserve Premium Refund Agreement\n \n Each member of NELIA subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective proportion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provisions of this endorsement. \n \n Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declarations of the Certificate of which this endorsement forms a part. \n \n \n \n (First Named Insured\u2014Type or Print\n \n Date\n \n By \n \n (Signature of Authorized Officer)\n \n \n \n (Type of Print Named and Title of Officer)\n \n Effective Date of this Endorsement \n \n 12:01 a.m. Standard Time\n \n To form a part of Policy No \n \n Issued to \n \n Date of Issue\n \n For the subscribing companies:\n \n By \n \n General Manager \n \n Endorsement No:\n \n Countersigned by\n \n NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION\n \n Nuclear Energy Liability Insurance\n \n Advance Premium and Standard Premium Endorsement, NE-W-2(1/1/88)\n \n Calendar Year 1988\n \n 1. Advance Premium\n \n It is agreed that the Advance Premium due the companies for the period designated above is:\n \n $\n \n 2. Standard Premium and Reserve Premium\n \n In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the previsions of the Industry Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated reserve Premium element of the Standard Premium is:\n \n $\n \n Explanation of Use of this Endorsement: This endorsement will be used in the first year of the Master Worker Policy. It states the Advance Premium and the estimated Reserve Premium for the year for the Certificate to which the endorsement is attached. \n \n Effective Date of this Endorsement\n \n 12:01 a.m. Standard Time\n \n To form a part of Policy No \n \n Issued to \n \n Date of Issue\n \n For the subscribing companies:\n \n By \n \n General Manager\n \n Endorsement No:\n \n Countersigned by \n \n NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION\n \n Nuclear Energy Liability Insurance\n \n Advance Premium and Standard Premium Endorsement, NE-W-3 (1/1/88)\n \n Calendar Year ________\n \n It is agreed that Items 1 and 2 of Endorsement No.   are amended to read:\n \n 1. Advance Premium\n \n It is agreed that the Advance Premium due the companies for the period designated above is:\n \n $ \n \n 2. Standard Premium and Reserve Premium\n \n In the absence of a change in the advance premium indicated above, it is agreed that, subject to the provisions of the Industry Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:\n \n $\n \n Explanation of Use of this Endorsement:  This endorsement will be used for calendar years of the Master Worker Policy after the 1988 calendar year. It states the Advance Premium and the estimated Reserve Premium for the year for the Certificate to which the endorsement is attached.\n \n Effective Date of this Endorsement \n \n 12:01 a.m. Standard Time\n \n To form a part of Policy No \n \n Issued to \n \n Date of Issue \n \n For the subscribing companies:\n \n By \n \n General Manager\n \n Endorsement No. \n \n Countersigned by \n \n NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION\n \n Nuclear Energy Liability Insurance\n \n Retrospective Reserve Premium Charge Endorsement, NE-W-dash;5 (1/1/88)\n \n 1. Industry Reserve Premium Charge\n \n In accordance with Section 4 of the Industry Retrospective Rating Plant Premium Endorsement attached to each Certificate to this policy, the companies have reviewed the status of the reserve for refunds, found that there is a negative balance in the reserve for refunds and have determined that an industry reserve premium charge, as indicated below, is appropriate:\n \n $ \n \n 2. Retrospective Adjustment Ratio\n \n The portion of the industry reserve premium charge payable by the Named Insureds under this Certificate is determined by multiplying such charge by this Certificate's retrospective adjustment ratio, which is:\n \n \n \n 3. Reserve Premium Charge\n \n The Named Insureds' portion of the industry reserve premium charge, as calculated above, is:\n \n $ \n \n Explanation of Use of this Endorsement:  This endorsement will be issued by the companies under the Master Worker Policy after an industry reserve premium charge has been determined because there is a negative balance in the reserve for refunds. It states the reserve premium charge applicable to the Certificate to which the endorsement is attached.\n \n Effective Date of this Endorsement \n \n 12:01 a.m. Standard Time\n \n To form a part of Policy No. \n \n Issued to \n \n Date of Issue \n \n For the subscribing companies\n \n By \n \n General Manager\n \n Endorsement No. \n \n Countersigned by\n\nWhile the text of the policy which follows is exemplary of a contract acceptable to the Commission as evidence of the financial protection required of the licensee by section 170 of the Atomic Energy Act of 1954, as amended, variations on this text submitted by the licensee also will be considered by the Commission in determining whether the licensee meets the financial protection requirements of the Act. The full text of the policy is published solely for the purpose of completeness. Publication of this text should not be construed as a Commission endorsement of any particular provision pertaining solely to the business relationship between the insurers and the insureds or to any other matter not within the Commission's statutory jurisdiction under the Atomic Energy Act.\n\nThe undersigned members of __________, hereinafter called the \u201ccompanies,\u201d each for itself, severally and not jointly, and in the respective proportions hereinafter set forth, agree with the insured, named in the declarations made a part hereof, in consideration of the premium and in reliance upon the statements in the declarations and subject to the limit of liability, exclusions, conditions and other terms of this policy;\n\nI.  Coverage A\u2014Bodily injury and property damage liability.  To pay on behalf of the insured:\n\n(1) All sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage caused by the nuclear energy hazard, and the companies shall defend any suit against the insured alleging such bodily injury or property damage and seeking damages which are payable under the terms of this policy; but the companies may make such investigation, negotiation and settlement of any claim or suit as they deem expedient;\n\n(2) Costs taxed against the insured in any such suit and interest on any judgment therein;\n\n(3) Premiums on appeal bonds and on bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds;\n\n(4) Reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request.\n\nCoverage B\u2014Damage to property of an insured away from the facility.  With respect to property damage caused by the nuclear energy hazard to property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as damages therefor, had such property belonged to another.\n\nCoverage C\u2014Subrogation\u2014Offsite employees.  With respect to bodily injury sustained by any employee of an insured and caused by the nuclear energy hazard, to pay to the workmen's compensation carrier of such insured all sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage. This Coverage C does not apply to bodily injury sustained by any person who is employed at and in connection with the facility. This Coverage C shall not constitute workmen's compensation insurance as required under the laws of any state.\n\nII.  Definition of insured.  The unqualified word  insured  includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for damages because of bodily injury or property damage caused by the nuclear energy hazard.\n\nSubdivision (b) above does not include as an insured the United States of America or any of its agencies.\n\nSubject to Condition 3 and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is brought.\n\nIII.  Definitions.  Wherever used in this policy:\n\nBodily injury  means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person;\n\nProperty damage  means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of such contamination;\n\nNuclear material  means source material, special nuclear material or byproduct material;\n\nSource material, special nuclear material,  and  byproduct material  have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof;\n\nSpent fuel  means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor;\n\nWaste  means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof;\n\nThe facility  means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location;\n\nNuclear facility  means  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by the companies or by __________________________________.\n\nThe term  nuclear facility  also means\n\n(1) Any nuclear reactor,\n\n(2) Any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste,\n\n(3) Any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium-233 or any combination thereof, or more than 250 grams of uranium-235,\n\n(4) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations;\n\nIndemnified nuclear facility  means\n\n(1)  The facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by the companies or by ______________________________________________,\n\n(2) Any other nuclear facility,\n\nif financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat;\n\nNuclear reactor  means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material;\n\nNuclear energy hazard  means the radioactive, toxic, explosive or other hazardous properties of nuclear material, but only if:\n\n(1) The nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any person or organization, or\n\n(2) The nuclear material is in an insured shipment which is (a) in the course of transportation, including handling and temporary storage incidental thereto, within the territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone and (b) away from any other nuclear facility;\n\nInsured shipment  means a shipment of source material, special nuclear material, spent fuel of waste, herein called  material,  (1) to the facility from a nuclear facility owned by the United States of America, but only if the transportation of the material is not by predetermination to be interrupted by the removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location except an indemnified nuclear facility, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.\n\nIV.  Application of policy.  This policy applies only to bodily injury or property damage (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured, not later than two years after the end of the policy period.\n\nThis policy does not apply:\n\n(a) To any obligation for which the insured or any carrier as his insurer may be held liable under any workmen's compensation, unemployment compensation or disability benefits law, or under any similar law;\n\n(b) Except with respect to liability of another assumed by the insured under contract, to bodily injury to any employee of the insured arising out of and in the course of his employment by the insured; but this exclusion does not apply to bodily injury to any person who is not employed at and in connection with the facility if the insured has complied with the requirements of the applicable workmen's compensation or occupational disease law respecting the securing of compensation benefits thereunder to his employees;\n\n(c) To liability assumed by the insured under contract, other than an assumption in a contract with another of the liability of any person or organization which would be imposed by law on such person or organization in the absence of an express assumption of liability;\n\n(d) To bodily injury or property damage due to the manufacturing, handling or use at the location designated in Item 3 of the declarations, in time of peace or war, of any nuclear weapon or other instrument of war utilizing special nuclear material or byproduct material;\n\n(e) To bodily injury or property damage due to war, whether or not declared, civil war, insurrection, rebellion or revolution, or to any act or conditions incident to any of the foregoing;\n\n(f) To property damage to any property at the location designated in Item 3 of the declarations, other than aircraft, watercraft or vehicles licensed for highway use, provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility;\n\n(g) To property damage to nuclear material in the course of transportation to or from the facility including handling or storage incidental thereto;\n\n(h) Under Coverage B, to property damage due to neglect of the insured to use all reasonable means to save and preserve the property after knowledge of the occurrence resulting in such property damage.\n\n1.  Premium \u2014(1)  Definitions.  With reference to the premium for this policy:  advance premium,  for any calendar year, is the estimated standard premium for that calendar year;\n\nStandard premium,  for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Credit Rating Plan), premiums and minimum premiums applicable to this insurance;\n\nReserve premium  means that portion of the standard premium paid to the companies and specifically allocated under the Industry Credit Rating Plan for incurred losses. The amount of the  reserve premium  for this policy for any calendar year during which this policy is in force is the amount designated as such in the Standard Premium Endorsement for that calendar year;\n\nIndustry reserve premium,  for any calendar year, is the sum of the reserve premiums for that calendar year for all Nuclear Energy Liability Policies issued by the Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan;\n\nPolicy refund ratio,  for any calendar year, is the ratio of the named insured's reserve premium for that calendar year to the industry reserve premium for that calendar year;\n\nIncurred losses  means the sum of:\n\n(1) All losses and expenses by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters, and\n\n(2) All reserves for unpaid losses and expenses as estimated by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters because of obligations assumed and the expenses incurred in connection with such obligations by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters under all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan;\n\nReserve for refunds,  at the end of any calendar year, is the amount by which (1) the sum of all industry reserve premiums for the period from January 1, 1957 through the end of such calendar year exceeds (2) the total for the same period of (a) all incurred losses, valued as of the next following July 1, and (b) all reserve premium refunds made under the Industry Credit Rating Plan by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters;\n\nIndustry reserve premium refund,  for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the industry reserve premium for the calendar year for which the premium refund is being determined to the sum of such amount and the total industry reserve premiums for the next nine calendar years thereafter, provided that the industry reserve premium refund for any calendar year shall in no event be greater than the industry reserve premium for such calendar year.\n\n(2)  Payment of advance and standard premiums.  The named insured shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this policy through December 31 following. Thereafter, at the beginning of each calendar year while this policy is in force, the named insured shall pay the advance premium for such year to the companies. The advance premium for each calendar year shall be stated in the Advance Premium Endorsement for such calendar year issued to the named insured as soon as practicable prior to or after the beginning of such year.\n\nAs soon as practicable after each December 31 and after the termination of this policy, the standard premium for the preceding calendar year shall be finally determined and stated in the Standard Premium Endorsement for that calendar year. If the standard premium so determined exceeds the advance premium previously paid for such calendar year, the named insured shall pay the excess to the companies; if less, the companies shall return to the named insured the excess portion paid by such insured.\n\nThe named insured shall maintain records of the information necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the policy period and at such other times during the policy period as the companies may direct.\n\n(3)  Use of reserve premiums.  All reserve premiums paid or payable for this policy may be used by the members of Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters to discharge their obligations with respect to incurred losses whether such losses are incurred under this policy or under any other policy issued by the Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.\n\n(4)  Reserve premium refunds.  A portion of the reserve premium for this policy for the first calendar year of any group of ten consecutive calendar years shall be returnable to the named insured provided there is a reserve for refunds at the end of the tenth calendar year.\n\n(5)  Computation of reserve premium refunds.  The reserve premium refund due the named insured for any calendar year shall be determined by multiplying any industry reserve premium refund for such calendar year by the policy refund ratio for such calendar year. The reserve premium refund for any calendar year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter.\n\n(6)  Final premium.  The final premium for this policy shall be the sum of the standard premiums for each calendar year, or portion thereof, during which this policy remains in force less the sum of all refunds of reserve premiums due the named insured under the provisions of this Condition 1.\n\n(7)  Reserve premium refund agreement.  Each member of Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters subscribing this policy for any calendar year, or portion thereof, thereby agrees for itself, severally and not jointly, and in the respective proportion of its liability assumed under this policy for that calendar year, to return to the named insured that portion of any reserve premium refund due the named insured for that calendar year, determined in accordance with the provisions of this Condition 1.\n\n2.  Inspection; suspension.  The companies shall be permitted to inspect the facility and to examine the insured's books and records at any time, as far as they relate to the subject-matter of this insurance.\n\nIf a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of noncompliance with such request, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuance of such dangerous condition, and to the United States Atomic Energy Commission, suspend the insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.\n\n3.  Limit of liability; termination of policy upon exhaustion of limit.  Regardless of the number of persons and organizations who are insureds under this policy, and regardless of the number of claims made and suits brought against any or all insureds because of one or more occurrences resulting in bodily injury or property damage caused during the policy period by the nuclear energy hazard, the limit of the companies' liability stated in the declarations is the total liability of the companies for their obligations under this policy and the expenses incurred by the companies in connection with such obligations, including.\n\n(a) Payments in settlement of claims and in satisfaction of judgments against the insureds for damages because of bodily injury or property damage, payments made under parts (2), (3) and (4) of Coverage A and payments made in settlement of claims under Coverages B and C;\n\n(b) Payments for expenses incurred in the investigation, negotiation, settlement and defense of any claim or suit, including, but not limited to, the cost of such services by salaried employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, inspection and appraisal of property, examination, X-ray or autopsy or medical expenses of any kind;\n\n(c) Payments for expenses incurred by the companies in investigating an occurrence resulting in bodily injury or property damage or in minimizing its effects.\n\nEach payment made by the companies in discharge of their obligations under this policy or for expenses incurred in connection with such obligations shall reduce by the amount of such payment the limit of the companies' liability under this policy.\n\nIf, during the policy period or subsequent thereto, the total of such payments made by the companies shall exhaust the limit of the companies' liability under this policy, all liability and obligations of the companies under this policy shall thereupon terminate and shall be conclusively presumed to have been discharged. This policy, if not theretofore canceled, shall thereupon automatically terminate.\n\nRegardless of the number of years this policy shall continue in force and the number of premiums which shall be payable or paid, the limit of the companies' liability stated in the declarations shall not be cumulative from year to year.\n\n4.  Limitation of liability; common occurrence.  Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of\n\n(a) Nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured by the companies under a Nuclear Energy Liability Policy (Facility Form), or\n\n(b) Source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by the companies, shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.\n\nWith respect to such bodily injury and property damage (1) the total aggregate liability of the companies under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of the companies exceed $______________;\n 1 \n   (2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the companies, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by the companies, the limit of liability of each such policy being as determined by Condition 3, thereof.\n\n1  For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be \u201c$124,000,000,\u201d for policies issued by Mutual Atomic Energy Liability Underwriters, the amount will be \u201c$36,000,000.\u201d\n\nThe provisions of this condition shall not operate to increase the limit of the companies' liability under this policy.\n\n5.  Notice of occurrence, claim, or suit.  In the event of bodily injury or property damage to which this policy applies or of an occurrence which may give rise to claims therefor, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to ____________or the companies as soon as practicable. If claim is made or suit is brought against the insured, he shall immediately forward to __________ or the companies every demand, notice, summons or other process received by him or his representative.\n\n6.  Assistance and cooperation of the insured.  The insured shall cooperate with the companies and, upon the companies' request, attend hearings and trials and assist in making settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of any legal proceedings in connection with the subject matter of this insurance. The insured shall not, except at his own cost, make any payment, assume any obligation or incur any expense.\n\n7.  Action against companies\u2014Coverages A and C.  No action shall lie against the companies or any of them unless, as a condition precedent thereto, the insured shall have fully complied with all the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the companies.\n\nAny person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. No person or organization shall have any right under this policy to join the companies or any of them as parties to any action against the insured to determine the insured's liability, nor shall the companies or any of them be impleaded by the insured or his legal representative. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the companies of any of their obligations hereunder.\n\n8.  Action against companies\u2014Coverage B.  No suit or action on this policy for the recovery of any claim for property damage to which Coverage B applies shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with and unless commenced within two years after the occurrence resulting in such property damage.\n\n9.  Insured's duties when loss occurs\u2014Coverage B.  In the event of property damage to which Coverage B applies, the insured shall furnish a complete inventory of the property damage claimed, showing in detail the amount thereof. Within ninety-one days after the occurrence resulting in such property damage, unless such time is extended in writing by the companies, the insured shall render to the companies a proof of loss, signed and sworn to by the insured, stating the knowledge and belief of the insured as to the following: identification of such occurrence; the interest of the insured in the property destroyed or damaged, and the amount of each item of property damage claimed; all encumbrances on such property; and all other contracts of insurance, whether valid or not, covering any of such property. The insured shall include in the proof of loss a copy of all descriptions and schedules in all policies. Upon the companies' request, the insured shall furnish verified plans and specifications of any such property. The insured, as often as may be reasonably required, shall exhibit to any person designated by the companies any of such property, and submit to examinations under oath by any person named by the companies and subscribe the same; and, as often as may be reasonably required, shall produce for examination all books of account, records, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the companies or their representatives, and shall permit extracts and copies thereof to be made.\n\n10.  Appraisal\u2014Coverage B.  In case the insured and the companies shall fail to agree as to the amount of property damage, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty days of such demand. The appraisers shall first select a competent and disinterested umpire and, failing for fifteen days to agree upon such umpire, then, on request of the insured or the companies, such umpire shall be selected by a judge of a court of record in the state in which the property is located. The appraisers shall then appraise each item of property damage and, failing to agree, shall submit their differences only to the umpire. An award in writing, so itemized, of any two when filed with the companies shall determine the amount of property damage. Each appraiser shall be paid by the party selecting him and the expenses of the appraisal and umpire shall be paid by the parties equally. The companies shall not be held to have waived any of their rights by any act relating to appraisal.\n\n11.  Subrogation.  In the event of any payment under this policy, the companies shall be subrogated to all the insured's rights of recovery therefor against any person or organization, and the insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. Prior to knowledge of bodily injury or property damage caused by the nuclear energy hazard the insured may waive in writing any right or recovery against any person or organization, but after such knowledge the insured shall not waive or otherwise prejudice any such right of recovery.\n\nThe companies hereby waive any rights of subrogation acquired against the United States of America or any of its agencies by reason of any payment under this policy.\n\nThe companies do not relinquish, by the foregoing provisions, any right to restitution from the insured out of any recoveries made by the insured on account of a loss covered by this policy of any amounts to which the companies would be entitled had such provisions, or any of them, not been included in this policy.\n\n12.  Other insurance.  If the insurance afforded by this policy for loss or expense is concurrent with insurance afforded for such loss or expense by a Nuclear Energy Liability Policy (Facility Form) issued to the named insured by __________ hereinafter called \u201cconcurrent insurance,\u201d the companies shall not be liable under this policy for a greater proportion of such loss or expense than the limit of liability stated in the declarations of this policy bears to the sum of such limit and the limit of liability stated in the declarations of such concurrent policy.\n\nIf the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by the companies or __________ to any person or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.\n\n13.  Changes.  Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or stop the companies from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed except by endorsement issued to form a part of this policy executed by __________ on behalf of the companies.\n\n14.  Assignment.  Assignment of interest by the named insured shall not bind the companies until their consent is endorsed hereon; if, however, the named insured shall die or be declared bankrupt or insolvent, this policy shall cover such insured's legal representative, receiver or trustee as an insured under this policy, but only with respect to his liability as such, and then only provided written notice of his appointment as legal representative, receiver or trustee is given to the companies within ten days after such appointment.\n\n15.  Cancellation.  This policy may be canceled by the named insured by mailing to the companies and the United States Nuclear Regulatory Commission written notice stating when, not less than thirty days thereafter, such cancellation shall be effective. This policy may be canceled by the companies by mailing to the named insured at the address shown in this policy and to the United States Nuclear Regulatory Commission written notice stating when, not less than ninety days thereafter, such cancellation shall be effective; provided in the event of non-payment of premium or if the operator of the facility, as designated in the declarations, is replaced by another person or organization, this policy may be canceled by the companies by mailing to the named insured at the address shown in this policy and to the United States Nuclear Regulatory Commission written notice stating when, not less than thirty days thereafter, such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured or by the companies shall be equivalent to mailing.\n\nUpon termination or cancellation of this policy, other than as of the end of December 31 in any year, the earned premium for the period this policy has been in force since the preceding December 31 shall be computed in accordance with the following provisions:\n\n(a) If this policy is terminated, pursuant to Condition 3, by reason of the exhaustion of the limit of the companies' liability, all premium theretofore paid or payable shall be fully earned;\n\n(b) If the named insured cancels, the earned premium for such period shall be computed in accordance with the customary annual short rate table and procedure, provided if the named insured cancels after knowledge of bodily injury or property damage caused by the nuclear energy hazard, all premiums theretofore paid or payable shall be fully earned;\n\n(c) If the companies cancel, the earned premium for such period shall be computed pro rata.\n\nPremium adjustment, if any, may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation.\n\n16.  Company representation.  (a) Any notice, sworn statement or proof of loss which may be required by the provisions of this policy may be given to any one of the companies, and such notice, statement or proof of loss so given shall be valid and binding as to all companies.\n\n(b) In any action or suit against the companies, service of process may be made on any one of them, and such service shall be deemed valid and binding service on all companies.\n\n(c) __________ is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy to be given to the companies may be given to such agent, at its office at __________ with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies.\n\n17.  Authorization of named insured.  Except with respect to compliance with the obligations imposed on the insured by Conditions 5, 6, 7, 8, 9, 10 and 11 of this policy, the named insured is authorized to act for every other insured in all matters pertaining to this insurance.\n\n18.  Changes in subscribing companies and in their proportionate liability.  By acceptance of this policy the named insured agrees that the members of __________ liable under this policy, and the proportionate liability of each such member, may change from year to year, and further agrees that regardless of such changes:\n\n(1) Each company subscribing this policy upon its issuance shall be liable only for its stated proportion of any obligation assumed or expense incurred under this policy because of bodily injury or property damage caused, during the period from the effective date of this policy to the close of December 31 next following, by the nuclear energy hazard; for each subsequent calendar year, beginning January 1 next following the effective date of this policy, the subscribing companies and the proportionate liability of each such company shall be stated in an endorsement issued to form a part of this policy, duly executed and attested by the __________ of ________________________ on behalf of each such company, and mailed or delivered to the named insured;\n\n(2) This policy shall remain continuously in effect from the effective date stated in the declarations until terminated in accordance with Condition 3 or Condition 15;\n\n(3) Neither the liability of any company nor the limit of liability stated in the declarations shall be cumulative from year to year.\n\n19.  Declarations.  By acceptance of this policy the named insured agrees that the statements in the declarations are the agreements and representations of the named insured, that this policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements between the named insured and the companies or any of their agents relating to this insurance.\n\nIn Witness Whereof, each of the subscribing companies has caused this policy to be executed and attested on its behalf by the ________ of ____________________ and duly countersigned on the declarations page by an authorized representative.\n\nFor the subscribing companies.\n\nItem 1. Named Insured ________________.\n\nAddress ________________________________.\n\nItem 2. Policy Period: Beginning at 12:01 a.m. on the __________ day of ______________, 19____, and continuing through the effective date of the cancellation or termination of this policy, standard time at the address of the named insured as stated herein.\n\nItem 3. Description of the Facility:\n\nThe Operator of the facility is ________.\n\nItem 4. The limit of the companies' liability is $______ subject to all the terms of this policy having reference thereto.\n\nItem 5. Advance Premium $______.\n\nItem 6. These declarations and the schedules forming a part hereof give a complete description of the facility, insofar as it relates to the nuclear energy hazard, except as noted ____________________________________\n\nDate of Issue ____________, 19____.\n\nCountersigned by __________________________\n\nIt is agreed that the definition of  insured shipment  in Insuring Agreement III is amended to read:  insured shipment  means a shipment of source material, special nuclear material, spent fuel or waste, herein called  material,  (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.\n\nEffective date of this endorsement ______ to form a part of Policy No. ______.\n\nIssued to ______________________________\n\nDate of Issue __________________________.\n\nFor the subscribing companies.\n\nCountersigned by __________________________\n\nEndorsement No. ______________.\n\nIt is agreed that:\n\nI. The first sentence of the definition of nuclear facility is amended to read:\n\nnuclear facility  means  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by __________ or by ________________.\n\nII. The definition of  indemnified nuclear facility  is replaced by the following:\n\nindemnified nuclear facility  means\n\n(1)  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by ________ or by ________ or\n\n(2) any other nuclear facility,\n\nif financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; with respect to any activities or operations conducted thereat:\n\nIII. Condition 4 is replaced by the following:\n\nLimitation of liability; common occurrence. Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive, or other hazardous properties of\n\n(a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by ____________ or,\n\n(b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by ________________.\n\nshall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.\n\nWith respect to such bodily injury and property damage (1) the total aggregate liability of the members of ________, under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $________;\n 1 \n   (2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the members of ________, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members the limit of liability of each such policy being as determined by Condition 3 thereof.\n\n1  For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be \u201c$124,000,000,\u201d for policies issued by Mutual Atomic Energy Liability Underwriters, the amount will be \u201c$36,000,000.\u201d\n\nThe provisions of this condition shall not operate to increase the limit of the companies' liability under this policy.\n\nIV. The second paragraph of Condition 12  Other Insurance  is amended to read:\n\nIf the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by ________ or to any person or organization) applicable to loss or expense covered by this policy the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.\n\nIt is agreed that:\n\n1. Payments made by the companies under this policy have reduced the limit of the companies' liability, stated in Item 4 of the declarations, to $________.\n\n2. Such reduced limit is restored to the amount stated in Item 4 of the declarations. Such restored limit applies to obligations assumed or expenses incurred because of bodily injury or property damage caused during the period from the effective date of this endorsement to the termination of the policy, by the nuclear energy hazard.\n\nWhen the reduction of the limit of liability results from a clearly identifiable nuclear event and restoration is offered retroactive to the effective date of the policy for claims other than those resulting from said event, above paragraph 2 will be replaced by the following:\n\n2. Such reduced limit is restored to the amount stated in Item 4 of the declarations, except with respect to bodily injury or property damage resulting from (describe nuclear event).\n\n3. The reduced limit of liability stated in paragraph 1 above, and the limit of liability stated in Item 4 of the declarations, as restored by this endorsement, shall not be cumulative; and each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment both the reduced limit of liability stated in paragraph 1 above and the limit of liability stated in Item 4 of the declarations, as restored by this endorsement, regardless of which limit of liability applies with respect to bodily injury or property damage out of which such loss or expense arises.\n\nEffective date of this endorsement ______to form a part of Policy No. ________\n\nIssued to ____________.\n\nDate of Issue ____________.\n\nFor the subscribing companies\n\nCountersigned by __________________________\n\nEndorsement No. ______.\n\nThis policy does not apply to bodily injury or property damage with respect to which the insured is entitled to indemnity from the United States Nuclear Regulatory Commission under the provisions of Indemnity Agreement No. ______ between the United States Nuclear Regulatory Commission and __________, dated __________, as now in effect or as hereafter amended.\n\nEffective date of this endorsement to form a part of Policy No.\n\nIssued to __________.\n\nDate of issue __________.\n\nFor the subscribing companies ________\n\nCountersigned by ____________________________\n\nEndorsement No. ______.\n\nThe named insured, acting for himself and every other insured under the policy, and the members of ________________________ agree as follows:\n\n1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which\u2014\n\n(a) Arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or\n\n(b) Arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive\n\n(1) Any issue or defense as to the conduct of the claimant or the fault of the insureds, including, but not limited to:\n\n(i) Negligence,\n\n(ii) Contributory negligence,\n\n(iii) Assumption of risk, and\n\n(iv) Unforeseeable intervening causes whether involving the conduct of a third person or an act of God,\n\n(2) Any issue or defense as to charitable or governmental immunity, and\n\n(3) Any issue or defense based on any statue of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than 10 years after the date of the nuclear incident.\n\nThe waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.\n\n2. The waivers set forth in paragraph 1 above do not apply to\n\n(a) Bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;\n\n(b) Bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law;\n\n(c) Any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law.\n\n3. The waivers set forth in paragraph 1 above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement.\n\nSuch waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under\u2014\n\n(1) The provisions of the policy applicable to the financial protection required of the named insured,\n\n(2) The agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended, and\n\n(3) The limit of liability provisions of subsection 170 e. of the Atomic Energy Act of 1954, as amended.\n\nSuch waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.\n\n4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1 above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.\n\n5. As used herein:\n\nExtraordinary nuclear occurrence  means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended,  financial protection  and  nuclear incident  have the meanings given them in the Atomic Energy Act of 1954, as amended.\n\nClaimant  means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.\n\nIt is agreed that insuring agreement IV of the policy, captioned  Application of Policy  is amended to read as follows: Application of Policy. This policy applies only to bodily injury or property damage: (1) Which is caused during the policy period by the nuclear energy hazard, and (2) which is discovered and for which written claim is made against the insured, not later than 10 years after the end of the policy period.\n\nagree as follows:\n\n1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which\n\n(a) Arises out of or results from or occurs in the course the construction, possession, or operation of the facility, or\n\n(b) Arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility.\n\nthe insured and the companies agree to waive.\n\n(1) Any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:\n\n(i) Negligence,\n\n(ii) Contributory negligence,\n\n(iii) Assumption of risk, and\n\n(iv) Unforeseeable intervening causes, whether involving the conduct of a third person, or an act of God,\n\n(2) Any issue or defense as to charitable or governmental immunity, and\n\n(3) Any issue or defense based on any statute of limitations if suit is instituted within three (3) years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than twenty (20) years after the date of the nuclear incident.\n\nThe waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.\n\n2. The waivers set forth in paragraph 1. above do not apply to\n\n(a) Bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;\n\n(b) Bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law;\n\n(c) Any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law.\n\n3. The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement; provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence. Insuring Agreement IV, \u201cApplication of Policy,\u201d shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.\n\nSuch waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under\n\n(a) The provisions of the policy applicable to the financial protection required of the named insured;\n\n(b) The agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended; and\n\n(c) The limit of liability provisions of Subsection 170e. of the Atomic Energy Act of 1954, as amended.\n\nSuch waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.\n\n4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.\n\n5. As used herein:\n\nExtraordinary nuclear occurrence  means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.\n\nFinancial protection  and  nuclear incident  have the meanings given them in the Atomic Energy Act of 1954, as amended.\n\nClaimant  means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.\n\nEffective date of this endorsement ________________________ to form a part of Policy No. ______________,\n\n12:01 A.M. Standard Time\n\nIssued to __________________________________.\n\nDate of issue ______________.\n\nEndorsement No. ______________.\n\nFor the subscribing companies:\n\nBy ______________________,\n\nGeneral Manager\n\nCountersigned by ________________________.\n\nIt is agreed that in construing the application of paragraph 2.(b) of the Waiver of Defenses Endorsement (NE-33a) with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:\n\n(1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility and\n\n(2) No operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and\n\n(3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility.\n\nEffective date of this endorsement ________________________ to form a part of Policy No. ______________.\n\n12:01 A.M. Standard Time\n\nIssued to __________________________________.\n\nDate of issue ______________.\n\nEndorsement No ______________.\n\nFor the subscribing companies:\n\nBy ______________________,\n\nGeneral Manager\n\nCountersigned by ______________________.\n\nIt is agreed that: 1. Solely with respect to an  insured shipment  to which the policy applies as proof of financial protection required by the Nuclear Regulatory Commission, subdivision (2) of the definition of  nuclear energy hazard  is amended to read:\n\n(2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including handling and temporary storage incidental thereto, within\n\n(a) The territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or\n\n(b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.\n\n2. As used herein,  financial protection  has the meaning given it in the Atomic Energy Act of 1954, as amended.\n\nInstructions \u2014This form is to be used to modify all Nuclear Energy Liability Facility Forms in force on January 1, 1977 which were issued to become effective prior to January 1, 1977 and which are offered by the named insured as proof of financial protection being maintained as required by the Atomic Energy Act of 1954, as amended.\n\nEffective date of this Endorsement ________________________ To form a part of Policy No. ______________.\n\n12:01 A.M. Standard Time\n\nIssued to __________________________________\n\nDate of issue ______________.\n\nEndorsement No. ______________.\n\nFor the subscribing companies:\n\nBy ______________________,\n\nGeneral Manager\n\nCountersigned by ________________________.\n\nIt is agreed that: I. In Insuring Agreement III,  DEFINITIONS\n\nA. Solely with respect to an  insured shipment  to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission, Subdivision (2) of the definition of  nuclear energy hazard  is amended to read:\n\n(2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within\n\n(a) The territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or\n\n(b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except for a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.\n\nB. The definition of  insured shipment  is replaced with the following:\n\nInsured shipment  means a shipment of source material, special nuclear material, spent fuel or waste, herein called  material,  (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.\n\nII. As used herein,  financial protection  has the meaning given it in the Atomic Energy Act of 1954, as amended.\n\nInstructions \u2014This form is to be used to modify all Nuclear Energy Liability Facility Forms which are issued to become effective on or after January 1, 1977 and which are offered by the named insured as proof of financial protection being maintained as required by the Atomic Energy Act of 1954, as amended.\n\nEffective date of this endorsement ____________________ To form a part of Policy No. ______________.\n\n12:01 A.M. standard time\n\nIssued to ________________________.\n\nDate of issue ______________.\n\nEndorsement No. ______________.\n\nFor the subscribing companies:\n\nBy ________________________,\n\nGeneral Manager.\n\nCountersigned by ______________________.\n\nIt is agreed that:\n\nI. In Insuring Agreement III:\n\nDEFINITIONS\n\nA. The first sentence of the definition of  nuclear facility  is amended to read:  nuclear facility  means  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters.\n\nB. The definition of  indemnified nuclear facility  is replaced by the following:  indemnified nuclear facility  means\n\n(1)  the facility  as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters, or\n\n(2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat;\n\nC. Solely with respect to an  insured shipment  to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission. Subdivision (2) of the definition of  nuclear energy hazard  is amended to read:\n\n(2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within\n\n(a) The territorial limits of the United States of America, its territories or possessions, or Puerto Rico; or Canal Zone; or\n\n(b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.\n\nD. The definition of  insured shipment  is replaced with the following:\n\ninsured shipment  means shipment of source material, special nuclear material, spent fuel or waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called  material,  (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.\n\nE. As used herein,  financial protection  has the meaning given it in the Atomic Energy Act of 1954, as amended.\n\nII. Insuring Agreement IV is replaced by the following:\n\nIV. APPLICATION OF POLICY. This policy applies only to bodily injury or property damage (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured, not later than ten years after the end of the policy period.\n\nIII. Condition 2 is replaced by the following:\n\n2. INSPECTION: SUSPENSION. The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of noncompliance with such request, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuation of such dangerous condition, and to the United States Nuclear Regulatory Commission, suspend this insurance with respect to named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.\n\nNeither the right to make such inspections and examinations nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation. In consideration of the issuance or continuation of this policy, the insured agrees that neither the companies nor any pesons or organizations making such inspections or exminations on their behalf shall be liable with respect to injury to or destruction of property at the facility, or any consequential loss or expense resulting therefrom, or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers.\n\nIV. Condition 4 is replaced by the following:\n\n4. LIMITATION OF LIABILITY: COMMON OCCURRENCE. Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of\n\n(a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of the properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association, or\n\n(b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by Nuclear Energy Liability Insurance Association, shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.\n\nWith respect to such bodily injury and property damage (1) the total aggregate liability of the members of the Nuclear Energy Liability Insurance Association under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $124,000,000; (2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the members of Nuclear Energy Liability Insurance Association, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members, the limit of liability of each such policy being as determined by Condition 3 thereof.\n\nThe provisions of this condition shall not operate to increase the limit of the companies' liability under this policy.\n\nV. The second paragraph of Condition 12,  Other Insurance,  is amended to read:\n\nIf the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters to any person or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.\n\nVI. Paragraph (c) of Condition 16,  Company Representation,  is amended to read:\n\n(c) Nuclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy to be given to the companies may be given to such agent, at its office at the Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut 06032, with the same force and effect as if given directly to the companies. Any requests, demand or agreements made by such agent shall be deemed to have been made directly by the companies.\n\nEffective Date of this Endorsement ________ 12:01 a.m. Standard Time to form a part of policy No. ______.\n\nIssued to ________ For the subscribing companies.\n\nDate of Issue ________.\n\nBy ________ General Manager.\n\nNE-50 (1/1/81)\n\nIt is agreed that:\n\n(1) Condition 2  Inspection; Suspension  is replaced by the following:\n\n2. Inspection; Suspension. The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such conditions be corrected without delay. In the event of noncompliance with such requests, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuation of such dangerous condition, and to the United States Nuclear Regulatory Commission, suspend this insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.\n\nNeither the right to make such inspections and examinations nor the making thereof nor advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation. In consideration of the issuance or continuation of this policy, the insured agrees that neither the companies nor any persons or organizations making such inspections or examinations on their behalf shall be liable with respect to injury to or destruction of property at the facility, or any consequential loss or expense resulting therefrom, or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers.\n\n(2) The definition of  insured shipment  in Insuring Agreement III,  Definitions,  is replaced by the following:  insured shipment  means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content herein called  material,  (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.\n\nEffective Date of this Endorsement ________ 12:01 a.m. Standard Time to form a part of Policy No. ______\n\nIssued to ________ For the subscribing companies.\n\nDate of Issue ________.\n\nBy ________ General Manager.\n\nNE-51 (1/1/81)\n\n1. The insurance and rating plan presently used by Nuclear Energy Liability Insurance Association ( NELIA ) and Mutual Atomic Energy Liability Underwriters ( MAELU ) do not make a distinction between workers claims arising from catastrophic events and those arising from lesser events;\n\n2. NELIA and MAELU believe that the lack of such a distinction will adversely affect their ability to continue to attract from world markets very large amounts of nuclear energy liability insurance for the nuclear industry;\n\n3. NELIA and MAELU want to avoid this potential loss of capacity and to continue to provide nuclear energy liability insurance for workers claims. Accordingly NELIA and MAELU desire to restructure their present insurance programs, including this policy, effective January 1, 1988.\n\nNow, Therefore, the Named Insured and the companies do hereby agree as follows:\n\nWhen used in reference to this endorsement:\n\nThis policy  means the policy of which this endorsement forms a part;\n\nNuclear related employment  means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility. All of a worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;\n\nWorker  refers to a person who is or was engaged in nuclear related employment;\n\nWorkers claims  means claims for damages because of bodily injury to a worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the worker's nuclear related employment;\n\nExtraordinary nuclear occurrence  means an event which the United States Nuclear Regulatory Commission has determined to be an  extraordinary nuclear occurrence  as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.\n\nThis endorsement applies only to such insurance as is afforded by this policy for workers claims which do not arise in whole or in part out of an extraordinary nuclear occurrence.\n\nThis policy does not apply to bodily injury to a worker which arises in whole or in part out of nuclear related employment that begins on or after January 1, 1988.\n\nWith respect to such insurance as is afforded by this policy for workers claims which are not excluded, Insuring Agreement IV does not apply and the following Insuring Agreement IV-A does apply:\n\nIV-A Application of Policy to Workers Claims.  This policy applies only to bodily injury (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured not later than the close of December 31, 1997.\n\nNELIA and MAELU are offering to make insurance under one or more Master Worker Policies available to all holders of Nuclear Energy Liability Policies (Facility Form).  This offer is contingent on sufficient support from policy holders, and may be withdrawn or modified by Nelia or Maelu as they deem necessary or appropriate.\n\nThe Master Workers Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plan.\n\nCoverage under the new master worker policies is not automatic. A written request must be submitted to Nelia or Maelu through regular market channels.\n\nIt is understood and agreed that all of the provisions of this endorsement shall remain in full force and effect without regard to this section 5, and without regard to whether or not the Named Insureds become insureds under the Master Worker Policies, or whether or not NELIA or MAELU terminate such policies or withdraw or modify their offer to underwrite such policies.\n\nExecuted for the companies\n\n(Signature or Authorized Officer)\n\n(Print or Type Name and Title of Officer)\n\nExecuted for the Named Insured\n\n(Named Insured\u2014Type or Print)\n\n(Signature of Authorized Officer)\n\n(Print or Type Name and Title of Officer)\n\nEffective Date of this Endorsement\n\n12:01 a.m. Standard Time\n\nFor the subscribing companies\n\nGeneral Manager\n\nEndorsement No.\n\nIt is agreed that:\n\nWhen used in reference to this endorsement:\n\nThis policy  means the policy of which this endorsement forms a part;\n\nNuclear related employment  means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility. All of a worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;\n\nWorker  refers to a person who is or was engaged in nuclear related employment;\n\nWorkers claims  means claims for damages because of bodily injury to a worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the worker's nuclear related employment;\n\nExtraordinary nuclear occurrence  means an event which the United States Nuclear Regulatory Commission has determined to be an  extraordinary nuclear occurrence  as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.\n\nThis endorsement applies only to such insurance as is afforded by this policy for workers claims which do not arise in whole or in part out of an extraordinary nuclear occurrence.\n\nThis policy does not apply to bodily injury to a worker which arises in whole or in part out of nuclear related employment that begins on or after January 1, 1988.\n\nWith respect to such insurance as is afforded by this policy for workers claims which are not excluded, Insuring Agreement IV does not apply and the following Insuring Agreement IV-A does apply:\n\nThis policy applies only to bodily injury (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured not later that the close of December 31, 1997.\n\nNELIA and MAELU are offering to make insurance under one or more Master Worker Policies available to all holders of Nuclear Energy Liability Policies (Facility Form).  This offer is contingent on sufficient support from policyholders, and may be withdrawn or modified by NELIA or MAELU as they deem necessary or appropriate.\n\nThe Master Worker Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plan.\n\nCoverage under the new master worker policies is not automatic. A written request must be submitted to NELIA or MAELU through regular market channels.\n\nIt is understood and agreed that all of the provisions of this endorsement shall remain in full force and effect without regard to this Section 5, and without regard to whether or not the Named Insureds become insureds under the Master Worker Policies, or whether or not NELIA or MAELU terminate such policies or withdraw or modify their offer to underwrite such policies.\n\nExplanation of Use of This Endorsement:  This endorsement is a mandatory endorsement which is to be attached to new Facility Form Policies issued on or after January 1, 1988.\n\nEffective Date of this Endorsement\n\n12:01 a.m. Standard Time\n\nFor the subscribing companies\n\nGeneral Manager\n\nEndorsement No.\n\nThe undersigned members of Nuclear Energy Liability Insurance Association, hereinafter called the  companies,  each itself severally and not jointly, and in the respective proportion hereinafter set forth, agree with the insureds named in Item 1 of the Declarations of each Certificate, hereinafter called the  Named Insureds,  in consideration of the payment of the premium, and subject to all of the provisions of the applicable Certificate and of this policy, as follows:\n\nNo insurance is provided by this policy except through a Certificate issued to form a part hereof. The insurance then applies separately to the persons and organizations who are defined in Section IV as insureds under each such Certificate, except with respect to the Amount of Insurance Available.\n\nThe Amount of Insurance Available through such a Certificate to any person or organization who is an insured thereunder is limited as provided in Section VIII of this policy.\n\nWhen used in reference to this policy:\n\nBodily injury  means bodily injury, sickness or disease, including death resulting therefrom;\n\nByproduct material  has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof;\n\nCertificate,  unless qualified, refers to a Certificate of Insurance (including Declarations and endorsements forming a part thereof) issued to form a part of this policy or of a MAELU Policy;\n\nClaims costs  means, with reference to claims or suits the companies have the right and duty to defend under this policy;\n\n(1) Cost taxed against the insured in such suits and interest on any judgments therein;\n\n(2) Premiums on appeal bonds and on bonds to release attachments in such suits (but the companies have no obligation to apply for or furnish such bonds;\n\n(3) Reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request;\n\n(4) Payments for expenses incurred in the investigation, negotiation, settlement and defense of such claims or suits, including, but not limited to, the cost of such allocated claims services by employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, examination, x-ray or autopsy or medical expenses of any kind;\n\n(5) Payments for expenses incurred by the companies in investigating an occurrence resulting in bodily injury or in minimizing its effects;\n\nDiscovery period  means the period defined in Section VI B hereof;\n\nExtraordinary nuclear occurrence  means an event which the United States Nuclear Regulatory Commission has determined to be an  extraordinary nuclear occurrence  as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof;\n\nInsured contract  means that part of a contract or agreement made prior to bodily injury to a new worker under which the insured assumes the tort liability of a third person to pay damages because of such bodily injury.  Tort liability  means a liability that would be imposed by law on the third person in the absence of an express assumption of liability by the third person;\n\nInsured facility  means a facility with respect to which insurance is provided through a Certificate;\n\nInsured shipment  means a shipment of source material, special nuclear material, spent fuel or waste (herein called  material ):\n\n(1) To the facility from any location other than an insured facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation; or\n\n(2) From the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation;\n\nMAELU  means Mutual Atomic Energy Liability Underwriters;\n\nMAELU Policy  means a Nuclear Energy Liability Policy (Facility Worker Form) written by members of MAELU;\n\nNELIA  means Nuclear Energy Liability Insurance Association;\n\nNew worker  refers to a person who is or was engaged in nuclear related employment that begins on or after January 1, 1988;\n\nNew worker's claim  means a claim for damages because of bodily injury to a new worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the new worker's nuclear related employment;\n\nNon-ratable incurred losses  has the meaning given in Attachment 1 to this policy;\n\nNuclear energy hazard  means the radioactive, toxic, explosive or other hazardous properties of nuclear material which is:\n\n(1) At the facility as described in the applicable Certificate issued to form a part of this policy or has been discharged or dispersed therefrom without intent to relinquish possession of custody thereof to any other person or organization; or\n\n(2) In an insured shipment that is away from any other insured nuclear facility and is in the course of transportation, including handling and temporary storage incidental thereto within:\n\n(a) The territorial limits of the United States of America, its territories or possessions or Puerto Rico; or\n\n(b) International waters or airspace, provided that:\n\n(i) The nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above; and\n\n(ii) There are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except to a port or place of refuge in an emergency;\n\nNuclear facility  means any of the following and includes the site on which any of them is located, all operations conducted on such site and all premises used for such operations:\n\n(1) The facility as described in any Certificate;\n\n(2) Any nuclear reactor;\n\n(3) Any equipment or device designed or used for:\n\n(a) Separating the isotopes of uranium or plutonium;\n\n(b) Processing or utilizing spent fuel; or\n\n(c) Handling, processing or packaging waste;\n\n(4) Any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment of device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235;\n\n(5) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste;\n\nNuclear material  means source material, special nuclear material or byproduct material;\n\nNuclear reactor  means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material;\n\nNuclear related employment  means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility.\n\nAll of a new worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;\n\nPolicy period  means the period defined in Section VI A hereof;\n\nRatable incurred losses  has the meaning given in Attachment 1 to this policy;\n\nSource material  has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof, and also includes tailings or wastes produced by the extraction of uranium or thorium from ore processed primarily for its source material content;\n\nSpecial nuclear material  has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof;\n\nSpent fuel  means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor;\n\nThe facility  refers to the facility described in the Declarations of a Certificate. It includes the location described in Item 3 thereof and all property and operations at such location;\n\nWaste  means any waste material that contains byproduct material and results from the operation by any person or organization of:\n\n(1) Any nuclear reactor; or\n\n(2) Any equipment or device designed or used for:\n\n(a) Separating the isotopes of uranium or plutonium;\n\n(b) Processing or utilizing spent fuel; or\n\n(c) Handling, processing or packaging such waste material.\n\nIn the event that a new worker's claim is made against a person or organization who is an insured under a Certificate issued to form a part of this policy:\n\n(1) The companies shall pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury to which this policy applies, sustained by a new worker and caused by the nuclear energy hazard.\n\nThe companies shall have the right and duty to defend any suit against the insured alleging such injury and seeking damages payable under the terms of this policy. But the companies may make such investigation and settlement of any claim or suit seeking such damages as they deem appropriate.\n\n(2) The companies shall also pay, as part of the Amount of Insurance Available under this policy, the claims costs relating to any such claim or suit.\n\n(3) The companies' obligation to pay damages and claims costs, and to defend any claim and suit ends when the Policy Aggregrate Limit has been exhausted pursuant to the provisions of Section VIII.\n\nWhen used in reference to a Certificate issued to form a part of this policy, the unqualified word  insured  means:\n\n(1) each insured named in Item 1 of the Declarations of the Certificate; and\n\n(2) any other person or organization with respect to legal responsibility for damages because of bodily injury to a new worker caused by the nuclear energy hazard applicable to the Certificate. This subsection (2) does not include as an insured the United States of America or any of its agencies except the Tennessee Valley Authority.\n\nThis policy does not apply:\n\n(1) To any obligation for which the insured or any carrier as his insurer may be held liable under any worker's compensation, unemployment compensation or disability benefits law, or under any similar law;\n\n(2) To bodily injury to any employee of the insured arising out of or in the course of employment by the insured; but this exclusion (2) does not apply to liability assumed by the insured under an insured contract;\n\n(3) To liability assumed by the insured under contract, other than an insured contract;\n\n(4) To bodily injury to a new worker due to the manufacturing, handling or use at the location designated in Item 3 of the Declarations of any Certificate, in time of peace or war, of any nuclear weapon or other instrument of war utilizing special nuclear material or byproduct material;\n\n(5) To bodily injury to a new worker due to war, whether or not declared, civil war, insurrection, rebellion or revolution, or to any act or condition incident to any of the foregoing;\n\n(6) To bodily injury to a new worker arising in whole or in part out of an extraordinary nuclear occurrence.\n\nThe policy period of this policy begins at 12:01 a.m. on January 1, 1988 and ends at the close of December 31, 1992, Eastern Standard Time, or when all Certificates issued to form a part hereof have been cancelled, whichever first occurs.\n\nThe discovery period for claims made under this policy begins at 12:01 a.m. on January 1, 1988 and ends at the close of December 31, 1997, Eastern Standard Time.\n\nThis policy applies only to bodily injury to a new worker (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is first made against the insured within the discovery period.\n\nA. This insurance is primary insurance under any insurance afforded by a Master Policy-Nuclear Energy Liability Insurance (Secondary Financial Protection) issued by NELIA or MAELU.\n\nB. If an insured has other valid and collectible insurance, except under a MAELU Policy, for loss or expense covered by this policy, this shall be excess insurance over such other insurance. If the insured has insurance under a MAELU Policy, whether the insurance is collectible or not, the companies shall then be liable under this policy only for such proportion of loss or expense as the amount stated as the Policy Aggregate Limit in Section VIII of this policy bears to the sum of such amount and the corresponding amount stated in the MAELU Policy.\n\n1. The Policy Aggregate Limit is $124 million. This limit is not cumulative from year to year. The limit applies to all new worker's claims that qualify for coverage under this policy (herein called  qualified claims ).\n\n2. The Policy Aggregate Limit applies collectively to all new worker's claims. Such claims may be paid by NELIA on behalf of the companies as the claims, in NELIA's discretion, become ready for disposition, and claims costs may be paid as they become due, all without regard to the order in which such claims were made and without any obligation to maintain, reserve or use any portion of the Policy Aggregate Limit for claims reported under any particular Certificate.\n\n1. Regardless of the number of (a) Certificates issued to form a part of this policy, (b) persons and organizations who are insureds under such Certificates, (c) qualified claims, or (d) years this policy or any such Certificates shall continue in force, the Policy Aggregate Limit is the total liability of the companies for all of their obligations under this policy, including the defense of suits and the payment of damages and claims costs.\n\n2. This policy provides for certain automatic reinstatements of the Policy Aggregate Limit. Regardless of such provision, if, during the policy period or thereafter, the total payments of the companies for\n\n(a) Non-ratable incurred losses, and\n\n(b) Those ratable incurred losses for which the companies have not been reimbursed under the Industry Retrospective Rating Plan Premium Endorsement described in Attachment 1 to this policy,\n\nequal $124 million, the Policy Aggregate Limit shall be deemed to be exhausted, and shall not be further reinstated except by an endorsement issued to form a part of this policy for additional premium as determined by the companies.\n\nC. Reduction and Reinstatement of the Policy Aggregate Limit\n\n1. Each payment made by the companies in discharge of their obligations under this policy shall reduce the Policy Aggregate Limit by the amount of such payment.\n\n2. The companies shall, however, automatically reinstate the policy aggregate limit until the total amount of such reinstatements equals $124 million, but in no event shall there be any automatic reinstatements after the Policy Aggregate Limit is exhausted pursuant to the provisions of subsection B.2. above. Thereafter, there shall be no further reinstatement of the Policy Aggregate Limit except by an endorsement issued to form a part of this policy for additional premium as determined by the companies.\n\n3. It is a condition of this insurance that the companies shall have the right to reimburse themselves, as a matter of first priority, from funds held by NELIA in the Special Reserve Account described in Attachment 1 to this policy or from retrospective premiums received by NELIA for this insurance. The amount of reimbursement shall be equal to 95% of each payment made by the companies with respect to their obligations under this policy.\n\nA. Notice of Claims or Suits\n\nIn the event of any claim or suit involving bodily injury to which a Certificate issued to form a part of this policy applies, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof shall be given by or for the insured to the companies as soon as practicable. The insured shall immediately forward to the companies every demand, notice, summons or other process received relating to claims or suits against the insured.\n\nB. Assistance and Cooperation\n\nThe insured shall cooperate with the companies and, upon their request, shall:\n\n(1) Attend hearings and trials; and\n\n(2) Assist in making settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of any legal proceedings in connection with the subject matter of this insurance.\n\nThe insured shall not, except at the insured's own cost, make any payment, assume any obligation or incur any expense.\n\nIn the event of any payment through a Certificate to form a part of this policy, the companies shall be subrogated to all the insured's rights of recovery therefor against any person or organization, and the insured shall execute and deliver instruments and papers, and so whatever else is necessary to secure such rights. Prior to knowledge of bodily injury caused by the nuclear energy hazard the insured may waive in writing any or all right of recovery against any person or organization, but after such knowledge the insured shall not waive or otherwise prejudice any such right of recovery.\n\nThe companies hereby waive any right of subrogation against (1) any other insured of (2) the United States of America or any of its agencies acquired by reason of any payment under this policy.\n\nIt is a condition of this policy that if an insured makes a recovery on account of any such injury, the insured shall repay to the companies the amount to which the companies would have been entitled had the foregoing provisions, or any of them, not been included in the policy.\n\nThe companies shall be permitted, but not obligated, to inspect at any time the facility as described in any Certificate and all books, records and operation relating thereto, both with respect to this insurance, and any other nuclear energy liability insurance and property insurance also afford with respect thereto by members of NELIA, American Nuclear Insurers, MAELU or MAERP Reinsurance Association.\n\nIf a representative of the companies discovers a condition which he or she believes to be unduly dangerous with respect to the risks insured under the Certificate, a representative of the companies may request such condition to be corrected without delay. In the event of noncompliance with the request, an officer of NELIA may, by written notice mailed or delivered to the first Named Insured, with similar notice to the United States Nuclear Regulatory Commission, suspend the insurance afforded by a Certificate issued by NELIA effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from NELIA to the first Named Insured that such condition has been corrected.\n\nNeither the right to make such inspections or suspensions nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the Named Insureds or others to determine or warrant that the facility or operations relating thereto are safe or healthful, or are in compliance with any law, rule or regulation.\n\nIn consideration of the issuance or continuation of a Certificate, the Named Insureds agree that neither the companies nor any persons or organizations making such inspections on their behalf shall be liable for damage to the facility or any consequential damage or cost resulting therefrom, including but not limited to any such damage or cost relating to interruption of business or manufacture, arising out of the making of or failure to make any such inspection of the facility, any report thereon, or any such suspension of insurance, but this provision does not limit the companies' contractual obligations under a Certificate issued by NELIA or any policy issued by NELIA or American Nuclear Insurers affording the insured nuclear energy liability or property insurance.\n\nThe first Named Insured designated in a Certificate issued to from a part of this policy any cancel such Certificate by mailing to the companies and the United States Nuclear Regulatory Commission written notice stating when, not less than 30 days thereafter, such cancellation shall be effective.\n\nThe companies may cancel any such Certificate by mailing to the first Named Insured designated therein at the address shown in such Certificate and to the United States Nuclear Regulatory Commission written notice, stating when, not less than 90 days thereafter, such cancellation shall be effective; provided in the event of non-payment of premium, or if the operator of the facility, as designated in the Declarations of the Certificate, is replaced by another person or organization, such Certificate may be cancelled by the companies by mailing to the first Named Insured at the address shown therein and to the United States Nuclear Regulatory Commission written notice, stating when, not less than 30 days thereafter, such cancellation shall be effective.\n\nThe mailing of notice as aforesaid shall be sufficient proof of notice. The effective date and hour of cancellation stated in the notice shall become the end of the Certificate period. Delivery of such written notice either by the first Named Insured or the companies shall be equivalent to mailing.\n\nUpon cancellation of a Certificate, other than as of the end of December 31 in any year, the earned standard premium for the period such Certificate has been in force since the preceding December 31 shall be computed in accordance with the following provisions:\n\n(1) If the first Named Insured cancels, the earned standard premium for such period shall be computed in accordance with the customary annual short rate table and procedure; provided, however, that if the first Named Insured cancels after knowledge of bodily injury caused by the nuclear energy hazard, all premiums theretofore paid or payable shall be fully earned;\n\n(2) If the companies cancel, the earned standard premium for such period shall be computed pro rata.\n\nPremium adjustment, if any, may be made either at the time of cancellation or as soon as practicable after cancellation becomes effective, but payment of tender of unearned premium is not a condition of cancellation.\n\nCancellation of a Certificate shall not affect the rights and obligations of the Named Insureds under the Insureds under the Industry Retrospective Rating Plan Premium Endorsement forming a part of the Certificate.\n\nThe Named Insureds designated in a Certificate issued by NELIA shall pay the companies the premiums for the Certificate in accordance with the provisions of the  Industry Retrospective Rating Plan Premium Endorsement  described in Attachment 1 to this policy.\n\nThe provisions of this policy or a Certificate issued to form a part hereof shall not be changed or waived except by an endorsement issued by the companies to form a part of the policy or Certificate.\n\nAssignment of interest under a Certificate issued to form a part of this policy shall not bind the companies until their consent is endorsed thereon. If, however, a Named Insured shall die or be declared bankrupt or insolvent, the Certificate shall cover the Named Insured's legal representative, receiver or trustee as an insured, but only with respect to liability as such, and then only provided written notice of the appointment as legal representative, receiver or trustee is given to the companies within 10 days after such appointment.\n\nNo suit or action on a Certificate issued to form a part of this policy shall lie against the companies or any of them unless, as a condition precedent thereto, the insured shall have fully complied with all the terms of the policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the companies.\n\nAny person or organization or the legal representative thereof who has secured such judgment of written agreement shall thereafter be entitled to recover under the Certificate to the extent of the insurance afforded by this policy through the Certificate. No person or organization shall have any right under the Certificate to join the companies or any of them as parties to any action against the insured to determine the insured's liability, nor shall the companies or any of them be impleaded by the insured or the insured's legal representative.\n\nBankruptcy or insolvency of the insured or the insured's estate shall not relieve the companies of any of their obligations under this policy.\n\nExcept with respect to compliance with the obligations imposed on the insured by the Sections of this policy entitled  Insured's Duties in Case of Claims or Suits,  Subrogation and  Suit,  the first Named Insured designated in the Declarations of a Certificate issued to form a part of this policy is authorized to act for every other insured in all matters pertaining to this insurance.\n\nAny notice, sworn statement of proof of Loss which may be required by the provisions of this policy may be given to any one of the companies specified in the Schedule of Subscribing Companies attached hereto. Such notice, statement or proof of Loss so given shall be valid and binding on all such companies.\n\nIn any action or suit against such companies, service of process may be made on any one of them and such service shall be valid and binding service on all such companies.\n\nNuclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy may be given to such agent at its office at: Nuclear Energy Liability Insurance Association, The Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut 06032, with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies.\n\nBy acceptance of this policy the Named Insureds agree that the members of Nuclear Energy Liability Insurance Association liable under this policy, and the proportionate liability of each such member, may change from year to year, and further agree that regardless of such changes:\n\n(1) Each company subscribing this policy upon its issuance shall be liable only for its stated proportion of any obligation assumed or expense incurred under this policy because of bodily injury to new workers caused, during the period from the effective date of this policy to the close of December 31 next following, by the nuclear energy hazard; for each subsequent calendar year, beginning January 1 next following the effective date of this policy, any change in the subscribing companies and the proportionate liability of each such company shall be stated in an endorsement issued to form a part of this policy, duly executed and attested by the President of Nuclear Energy Liability Insurance Association on behalf of each such company, and a copy of which will be mailed or delivered to the first Named Insured of each Certificate.\n\n(2) The liability of any subscribing company shall not be cumulative from year to year.\n\nBy acceptance of this Master Worker Policy, the Named Insureds designated in a Certificate agree that the statements in such Certificate are their agreements and representations, that this Master Worker Policy and such Certificate are issued in reliance upon the truth of such representations and that this Master Worker Policy and such Certificate embody all agreements between such Named Insureds and the companies or any of their agents relating to this insurance.\n\nIn Witness Whereof,  the companies subscribing this policy have caused the policy to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly countersigned by an authorized representative, but this policy shall be binding on each company only to the extent of its designated proportion of any obligation assumed or expense incurred under this policy.\n\nFor the Subscribing Companies:\n\nDate of Issue: ________ 19____\n\nCountersigned by: (Authorized Representative)\n\nCertificate No. ______\n\nThis is to certify that the insured named in Item 1 of the Declarations hereof, hereinafter called the  Named Insureds,  have obtained insurance under the Master Worker Policy issued by Nuclear Energy Liability Insurance Association on behalf of its members. The insurance is subject to all of the provisions of the  Certificate  and the Master Worker Policy.\n\nBeginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.\n\nLocation:\n\nType:\n\nOperator of the Facility:\n\nThe amount of insurance afforded by the Master Worker Policy through this Certificate shall be determined by Section VIII of the Master Worker Policy and all of the other provisions of the policy relating thereto.\n\nThis Certificate applies only to bodily injury to a new worker (1) which is caused, during the Certificate Coverage Period, by the nuclear energy hazard and (2) which is discovered and for which written claim is first made against an insured under the Certificate within the discovery period of the Master Worker Policy.\n\nAll insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies. No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium Endorsement and a copy of the signed endorsement has been issued by the companies to form a part of this Certificate.\n\nIn Witness Whereof,  the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly countersigned by an authorized representative.\n\nFor the Subscribing Companies:\n\nDate of Issue __________ 19 ______\n\n(Authorized Representative)\n\nIt is agreed that:\n\nWith reference to the premium for the Certificate of which this endorsement forms a part:\n\nMaster Worker Policy  means the Master Worker Policy issued by NELIA;\n\nCertificate Holder  means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy;\n\nAdvance premium,  for any calendar year, is the estimated standard premium for that calendar year;\n\nStandard premium,  for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance. Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospective adjustment;\n\nReserve premium  means that portion of the premium for a Certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retrospective Rating Plan for ratable incurred losses;\n\nIndustry reserve premium,  for any period, is the sum of the reserve premiums for that period for all Certificates issued to form a part of the Master Worker Policy;\n\nRetrospective adjustment ratio,  for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period;\n\nIncurred losses  means the sum of all:\n\n(1) Losses and expenses paid by NELIA, and\n\n(2) Reserves for losses and expenses as estimated by NELIA, because of obligations assumed and expenses incurred in connection with such obligations by the members of NELIA under the Master Worker Policy;\n\nRatable incurred losses  means 95% of incurred losses. Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums;\n\nNon-ratable incurred losses  means 5% of incurred losses. Nonratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums;\n\nReserve for refunds,  as of any date, is the algebraic difference between:\n\n(1) All industry reserve premium for the period from January 1, 1988 through such date, minus\n\n(2) The total for the same period of (a) all ratable incurred losses and (b) all industry reserve premium refunds made under the Industry Retrospective Rating Plan by members of NELIA;\n\nIndustry reserve premium charge,  for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates;\n\nReserve premium charge  means the portion of an industry reserve premium charge payable by the Named Insureds under Certificates;\n\nIndustry reserve premium refund  for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates;\n\nReserve premium refund  means the portion of an industry reserve premium refund returnable to the Named Insureds under this Certificate.\n\nThe Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.\n\nThe advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon as practicable prior to or after the beginning of the year.\n\nAs soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the Standard Premium exceeds the Advance Premium paid for that year, the Named Insureds shall pay the excess to the companies; if less, the companies shall return to the Named Insureds the excess portion paid.\n\nThe Named Insureds shall maintain records of the information necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certificate Coverage Period and at such other times as the companies may direct.\n\nNELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:\n\n(1) To pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of NELIA subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced;\n\n(2) To refund any amounts so held to the Named Insureds, as provided in Section 4.\n\nNo members of NELIA and no Named Insureds shall have any individual interest in or claim upon amounts held in the special Reserve Account, except to participate proportionally in any refund or reimbursement provided for above.\n\nAll reserve premiums paid or payable for this certificate may be used by NELIA to discharge the obligations of its members under the Master Worker Policy with respect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.\n\nAs soon as practicable after each December 31 the companies will review the status of the reserve for refunds and report their findings to all Certificate Holders.\n\nIf, at any time, the companies find that there is negative balance in the reserve for refunds and that such condition is likely to prevail, they shall determine an appropriate industry reserve premium charge. Similarly, if the companies find that there is a surplus positive balance, they shall determine an appropriate industry reserve premium refund.\n\nThe portion of an industry reserve premium charge or an industry reserve premium refund that is:\n\n(1) Payable by the Named Insureds as a reserve premium charge, or\n\n(2) Due such insureds as reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.\n\nThe amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement. The charge shall be paid promptly after receipt of the endorsement.\n\nWhen all claims covered by the Master Worker Policy are closed the companies shall make a final review and report, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.\n\nThe final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve premiums, including all reserve premium charges, minus (c) the sum of all reserve premium refunds.\n\nIn consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of NELIA under the Master Worker Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:\n\n(1) That the insurance provided by the Master Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.\n\n(2) That the right of each Named Insured under a Certificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination.\n\n(3) To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.\n\nOverdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of interest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date. Any reserve premium refund due to Named Insureds under a Certificate shall be used to pay any overdue reserve premium charges to such Named Insureds.\n\nEach member of NELIA subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective proportion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provisions of this endorsement.\n\nAccepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declarations of the Certificate of which this endorsement forms a part.\n\n(First Named Insured\u2014Type or Print\n\n(Signature of Authorized Officer)\n\n(Type of Print Named and Title of Officer)\n\n12:01 a.m. Standard Time\n\nFor the subscribing companies:\n\nGeneral Manager\n\nEndorsement No:\n\nIt is agreed that the Advance Premium due the companies for the period designated above is:\n\nIn the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the previsions of the Industry Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated reserve Premium element of the Standard Premium is:\n\nExplanation of Use of this Endorsement: This endorsement will be used in the first year of the Master Worker Policy. It states the Advance Premium and the estimated Reserve Premium for the year for the Certificate to which the endorsement is attached.\n\n12:01 a.m. Standard Time\n\nFor the subscribing companies:\n\nGeneral Manager\n\nEndorsement No:\n\nIt is agreed that Items 1 and 2 of Endorsement No.   are amended to read:\n\nIt is agreed that the Advance Premium due the companies for the period designated above is:\n\nIn the absence of a change in the advance premium indicated above, it is agreed that, subject to the provisions of the Industry Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:\n\nExplanation of Use of this Endorsement:  This endorsement will be used for calendar years of the Master Worker Policy after the 1988 calendar year. It states the Advance Premium and the estimated Reserve Premium for the year for the Certificate to which the endorsement is attached.\n\n12:01 a.m. Standard Time\n\nFor the subscribing companies:\n\nGeneral Manager\n\nIn accordance with Section 4 of the Industry Retrospective Rating Plant Premium Endorsement attached to each Certificate to this policy, the companies have reviewed the status of the reserve for refunds, found that there is a negative balance in the reserve for refunds and have determined that an industry reserve premium charge, as indicated below, is appropriate:\n\nThe portion of the industry reserve premium charge payable by the Named Insureds under this Certificate is determined by multiplying such charge by this Certificate's retrospective adjustment ratio, which is:\n\nThe Named Insureds' portion of the industry reserve premium charge, as calculated above, is:\n\nExplanation of Use of this Endorsement:  This endorsement will be issued by the companies under the Master Worker Policy after an industry reserve premium charge has been determined because there is a negative balance in the reserve for refunds. It states the reserve premium charge applicable to the Certificate to which the endorsement is attached.\n\n12:01 a.m. Standard Time\n\nFor the subscribing companies\n\nGeneral Manager"], ["10:10:2.0.1.1.21.6.134.4", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.92 Appendix B\u2014Form of indemnity agreement with licensees furnishing insurance policies as proof of financial protection.", "NRC", "", "", "[26 FR 3457, Apr. 22, 1961]", "This indemnity agreement ________ is entered into by and between the ________ (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 ). \n \n Article I\n \n As used in this agreement, \n \n 1.  Nuclear reactor, byproduct material, person, source material, special nuclear material,  and  precautionary evacuation  shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission. \n \n 2.(a) For facilities designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, and except when 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 8, Article II, with respect to common occurrences, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan for deferred retrospective premium charges).\n \n (b) For all other facilities, and 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 8, Article II, with respect to common occurrences.\n \n 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. \n \n (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 \n \n 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 material  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 \n \n 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 170 c or k of the Act as  the radioactive material  and which is in the course of transportation, \n \n shall be deemed to be a common occurrence. A common occurrence shall be deemed to constitute a single nuclear incident. \n \n 4.  Extraordinary nuclear occurrence  means an event which the Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended. \n \n 5.  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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n \n (a) With respect to transportation of the radioactive material to the location, such transportation is not by pre-determination 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; \n \n (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; \n \n (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 agreement entered into by the Commission pursuant to subsection 170 c or k of the Act. \n \n 6.  Person indemnified  means the licensee and any other person who may be liable for public liability. \n \n 7.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), 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; and (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. \n \n 8.  The location  means the location described in Item 4 of the Attachment hereto. \n \n 9.  The radioactive material  means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) which is produced as the result of operation of said reactor(s). \n \n 10.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States. \n \n Article II\n \n 1. At all times during the term of the license or licenses designated in Item 3 of the Attachment hereto, the licensee will maintain financial protection in the amount specified in Item 2 of the Attachment and in the form of the nuclear energy liability insurance policy designated in the Attachment. If more than one license is designated in Item 3 of the Attachment, the licensee agrees to maintain such financial protection until the end of the term of that license which will be the last to expire. The licensee shall, notwithstanding the expiration, termination, modification, amendment, suspension or revocation of any license or licenses designated in Item 3 of the Attachment, maintain such financial protection in effect until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 5(b), Article I of this section, or until the Commission authorizes the termination or the modification of such financial protection. The Commission will not unreasonably withhold such authorization. \n \n 2. In the event of any payment by the insurer or insurers under a policy or policies specified in Item 5 of the Attachment hereto which reduces the aggregate limit of such policy or policies below the amount of financial protection, the licensee will promptly apply to his insurers for reinstatement of the amount specified in Item 2a of the Attachment (without reference to paragraph b of Item 2) and will make all reasonable efforts to obtain such reinstatement. In the event that the licensee has not obtained reinstatement of such amount within ninety days after the date of such reduction, and in the absence of good cause shown to the contrary, the Commission may issue an order requiring the licensee to furnish financial protection for such amount in another form. \n \n 3. Any 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 hereto, shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident, including the reasonable costs of investigating and settling claims and defending suits for damage. \n \n 4. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive:\n \n (a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to: \n \n (1) Negligence; \n \n (2) Contributory negligence; \n \n (3) Assumption of the risk; \n \n (4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God. \n \n As used herein,  conduct of the claimant  includes conduct of persons through whom the claimant derives his cause of action; \n \n (b) Any issue or defense as to charitable or governmental immunity; \n \n (c) Any issue or defense based on any statute of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.\n \n The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.\n \n 5. The waivers set forth in paragraph 4 of this article:\n \n (a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages; \n \n (b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; \n \n (c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefore are either payable or required to be provided under any workmen's compensation or occupational disease law:  Provided, however,  That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if: \n \n (1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and \n \n (2) No operating license has been issued by the NRC with respect to the nuclear reactor, and \n \n (3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility; \n \n (d) Shall not apply to any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law; \n \n (e) Shall be effective only with respect to those obligations set forth in this agreement; \n \n (f) Shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (1) the limit of liability provisions under subsection 170(e) of the Atomic Energy Act of 1954, as amended, and (2) the terms of this agreement and the terms of the nuclear energy liability insurance policy or policies designated in the attachment hereto. \n \n 6. The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 7. Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided, that the licensee is then entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders. \n \n 8. With respect to any common occurrence,\n \n (a) If the sum of limit of liability of any Nuclear Energy Liability Insurance Association policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Nuclear Energy Liability Insurance Association exceeds $155,000,000 the amount of financial protection specified in Item 2 a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $155,000,000 as the limit of liability of the Nuclear Energy Liability Insurance Association 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 Nuclear Energy Liability Insurance Association;\n \n (b) If the sum of the limit of liability of any Mutual Atomic Energy Liability Underwriters policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters exceeds $45,000,000, the amount of financial protection specified in Item 2 a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $45,000,000 as the limit of liability of the Mutual Atomic Energy Liability 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;\n \n (c) If any of the other applicable agreements is with a person who has furnished financial protection in a form other than a nuclear energy liability insurance policy (facility form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, 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 $200,000,000 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 $200,000,000 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.\n \n (d) As used in this paragraph 8., Article II, and in Article III,  other applicable agreements  means each other agreement entered into by the Commission pursuant to subsection 170(c) of the Act in which agreement the nuclear incident is defined as a  common occurrence.  As used in this paragraph 8., 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 incurred by the insurers in investigating and settling claims and defending suits for damage.\n \n 9. 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 insolvency of any person indemnified other than the licensee, or the estate of any person indemnified other than the licensee, shall not relieve the licensee of any of his obligations hereunder. \n \n Article III\n \n 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. \n \n 2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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: \n \n (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 Item 5 of the Attachment; \n \n (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; \n \n (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; \n \n (d) The radioactive material. \n \n 3. [Reserved]\n \n 4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed the amount of financial protection.\n \n (b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed whichever of the following is lower: (1) The sum of the amounts of financial protection established under this agreement and all other applicable agreements; or (2) an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection.\n \n 5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 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. \n \n 7. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified or of the estate of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder. \n \n Article IV\n \n 1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n \n 2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission. \n \n Article V\n \n The parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission. \n \n Article VI\n \n The licensee agrees to pay to the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission. \n \n Article VII\n \n The term of this agreement shall commence as of the date and time specified in Item 6 of the Attachment and shall terminate at the time of expiration of that license specified in Item 3 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 5(b), Article I of this section. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement. \n \n Article VIII \n \n The following provisions are applicable to each licensee operating a facility designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more;\n \n 1. Each licensee is required to have and maintain financial protection in an amount specified in Item 2 a and b of the Attachment annexed hereto, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing for deferred premium charges); Provided, however, That under such a plan for deferred premium charges, such charges for each nuclear reactor which is licensed to operate shall not exceed $63,000,000 with respect to any single nuclear incident (plus any surcharge assessed under subsection 170o.(1)(E) of the Act) nor exceed $10,000,000 per incident within one calendar year. If the licensee fails to pay assessed deferred premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and to recover the amount of such premiums from the licensee.\n \n 2. The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the retrospective premium by the insurance pools, that they will not pay the assessment. Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings. Subsequent submission of financial statements by such licensees may be requested by the Commission, as required. \n \n 3. If premiums are paid by the Commission as provided in paragraph 1, payment by the Commission shall create a lien in the amount paid in favor of the United States upon all property and rights to property, whether real or personal, belonging to such licensee. The lien shall arise at the time payment is made by the Commission and shall continue until the liability for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable. The Commission will issue a certificate of release of any such lien if it finds that the liability for the amount has been fully satisfied or has become legally unenforceable. \n \n 4. If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days. The Commission may take any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to termination of the operating license. \n \n United States Nuclear Regulatory Commission\n \n Indemnity Agreement No. \n \n Item 1\u2014Licensee \n \n Address \n \n Item 2\u2014a. Amount of financial protection \n \n b. With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (i) reduced to the extent that any payment made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachment reduces the aggregate amount of such insurance policies below the amount specified in Item 2a and (ii) restored to the extent that, following such reduction, the aggregate amount of such insurance policies is reinstated. \n \n Item 3\u2014License number or numbers \n \n Item 4\u2014Location \n \n Item 5\u2014Insurance Policy No.(s) \n \n Item 6\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of __ m., on the __ day of ____________, 19____. \n \n For the United States Nuclear Regulatory Commission. \n \n By __________________\n \n For the __________________\n \n (Name of licensee) \n \n By __________________\n \n Dated at Bethesda, MD, the ______________ day of ____________, 19____.\n\nThis indemnity agreement ________ is entered into by and between the ________ (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 ).\n\nAs used in this agreement,\n\n1.  Nuclear reactor, byproduct material, person, source material, special nuclear material,  and  precautionary evacuation  shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n\n2.(a) For facilities designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, and except when 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 8, Article II, with respect to common occurrences, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan for deferred retrospective premium charges).\n\n(b) For all other facilities, and 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 8, Article II, with respect to common occurrences.\n\n3. (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.\n\n(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\n\ni. 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 material  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\n\nii. 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 170 c or k of the Act as  the radioactive material  and which is in the course of transportation,\n\nshall be deemed to be a common occurrence. A common occurrence shall be deemed to constitute a single nuclear incident.\n\n4.  Extraordinary nuclear occurrence  means an event which the Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.\n\n5.  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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n\n(a) With respect to transportation of the radioactive material to the location, such transportation is not by pre-determination 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;\n\n(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;\n\n(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 agreement entered into by the Commission pursuant to subsection 170 c or k of the Act.\n\n6.  Person indemnified  means the licensee and any other person who may be liable for public liability.\n\n7.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), 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; and (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.\n\n8.  The location  means the location described in Item 4 of the Attachment hereto.\n\n9.  The radioactive material  means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) which is produced as the result of operation of said reactor(s).\n\n10.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States.\n\n1. At all times during the term of the license or licenses designated in Item 3 of the Attachment hereto, the licensee will maintain financial protection in the amount specified in Item 2 of the Attachment and in the form of the nuclear energy liability insurance policy designated in the Attachment. If more than one license is designated in Item 3 of the Attachment, the licensee agrees to maintain such financial protection until the end of the term of that license which will be the last to expire. The licensee shall, notwithstanding the expiration, termination, modification, amendment, suspension or revocation of any license or licenses designated in Item 3 of the Attachment, maintain such financial protection in effect until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 5(b), Article I of this section, or until the Commission authorizes the termination or the modification of such financial protection. The Commission will not unreasonably withhold such authorization.\n\n2. In the event of any payment by the insurer or insurers under a policy or policies specified in Item 5 of the Attachment hereto which reduces the aggregate limit of such policy or policies below the amount of financial protection, the licensee will promptly apply to his insurers for reinstatement of the amount specified in Item 2a of the Attachment (without reference to paragraph b of Item 2) and will make all reasonable efforts to obtain such reinstatement. In the event that the licensee has not obtained reinstatement of such amount within ninety days after the date of such reduction, and in the absence of good cause shown to the contrary, the Commission may issue an order requiring the licensee to furnish financial protection for such amount in another form.\n\n3. Any 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 hereto, shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident, including the reasonable costs of investigating and settling claims and defending suits for damage.\n\n4. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive:\n\n(a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to:\n\n(1) Negligence;\n\n(2) Contributory negligence;\n\n(3) Assumption of the risk;\n\n(4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God.\n\nAs used herein,  conduct of the claimant  includes conduct of persons through whom the claimant derives his cause of action;\n\n(b) Any issue or defense as to charitable or governmental immunity;\n\n(c) Any issue or defense based on any statute of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.\n\nThe waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.\n\n5. The waivers set forth in paragraph 4 of this article:\n\n(a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages;\n\n(b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;\n\n(c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefore are either payable or required to be provided under any workmen's compensation or occupational disease law:  Provided, however,  That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:\n\n(1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and\n\n(2) No operating license has been issued by the NRC with respect to the nuclear reactor, and\n\n(3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility;\n\n(d) Shall not apply to any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law;\n\n(e) Shall be effective only with respect to those obligations set forth in this agreement;\n\n(f) Shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (1) the limit of liability provisions under subsection 170(e) of the Atomic Energy Act of 1954, as amended, and (2) the terms of this agreement and the terms of the nuclear energy liability insurance policy or policies designated in the attachment hereto.\n\n6. The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n7. Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided, that the licensee is then entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders.\n\n8. With respect to any common occurrence,\n\n(a) If the sum of limit of liability of any Nuclear Energy Liability Insurance Association policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Nuclear Energy Liability Insurance Association exceeds $155,000,000 the amount of financial protection specified in Item 2 a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $155,000,000 as the limit of liability of the Nuclear Energy Liability Insurance Association 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 Nuclear Energy Liability Insurance Association;\n\n(b) If the sum of the limit of liability of any Mutual Atomic Energy Liability Underwriters policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters exceeds $45,000,000, the amount of financial protection specified in Item 2 a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $45,000,000 as the limit of liability of the Mutual Atomic Energy Liability 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;\n\n(c) If any of the other applicable agreements is with a person who has furnished financial protection in a form other than a nuclear energy liability insurance policy (facility form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, 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 $200,000,000 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 $200,000,000 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.\n\n(d) As used in this paragraph 8., Article II, and in Article III,  other applicable agreements  means each other agreement entered into by the Commission pursuant to subsection 170(c) of the Act in which agreement the nuclear incident is defined as a  common occurrence.  As used in this paragraph 8., 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 incurred by the insurers in investigating and settling claims and defending suits for damage.\n\n9. 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 insolvency of any person indemnified other than the licensee, or the estate of any person indemnified other than the licensee, shall not relieve the licensee of any of his obligations hereunder.\n\n1. The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear from public liability.\n\n2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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:\n\n(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 Item 5 of the Attachment;\n\n(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;\n\n(c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation;\n\n(d) The radioactive material.\n\n3. [Reserved]\n\n4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed the amount of financial protection.\n\n(b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed whichever of the following is lower: (1) The sum of the amounts of financial protection established under this agreement and all other applicable agreements; or (2) an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection.\n\n5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n6. 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.\n\n7. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified or of the estate of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder.\n\n1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n\n2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission.\n\nThe parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission.\n\nThe licensee agrees to pay to the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission.\n\nThe term of this agreement shall commence as of the date and time specified in Item 6 of the Attachment and shall terminate at the time of expiration of that license specified in Item 3 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 5(b), Article I of this section. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement.\n\nThe following provisions are applicable to each licensee operating a facility designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more;\n\n1. Each licensee is required to have and maintain financial protection in an amount specified in Item 2 a and b of the Attachment annexed hereto, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing for deferred premium charges); Provided, however, That under such a plan for deferred premium charges, such charges for each nuclear reactor which is licensed to operate shall not exceed $63,000,000 with respect to any single nuclear incident (plus any surcharge assessed under subsection 170o.(1)(E) of the Act) nor exceed $10,000,000 per incident within one calendar year. If the licensee fails to pay assessed deferred premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and to recover the amount of such premiums from the licensee.\n\n2. The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the retrospective premium by the insurance pools, that they will not pay the assessment. Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings. Subsequent submission of financial statements by such licensees may be requested by the Commission, as required.\n\n3. If premiums are paid by the Commission as provided in paragraph 1, payment by the Commission shall create a lien in the amount paid in favor of the United States upon all property and rights to property, whether real or personal, belonging to such licensee. The lien shall arise at the time payment is made by the Commission and shall continue until the liability for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable. The Commission will issue a certificate of release of any such lien if it finds that the liability for the amount has been fully satisfied or has become legally unenforceable.\n\n4. If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days. The Commission may take any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to termination of the operating license.\n\nb. With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (i) reduced to the extent that any payment made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachment reduces the aggregate amount of such insurance policies below the amount specified in Item 2a and (ii) restored to the extent that, following such reduction, the aggregate amount of such insurance policies is reinstated.\n\nItem 6\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of __ m., on the __ day of ____________, 19____.\n\nFor the United States Nuclear Regulatory Commission.\n\nDated at Bethesda, MD, the ______________ day of ____________, 19____."], ["10:10:2.0.1.1.21.6.134.5", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.93 Appendix C\u2014Form of indemnity agreement with licensees furnishing proof of financial protection in the form of licensee's resources.", "NRC", "", "", "[26 FR 3459, Apr. 22, 1961]", "This indemnity agreement No. __________ is entered into by and between the ________ (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 ). \n \n Article I\n \n As used in this agreement, \n \n 1.  Nuclear reactor, byproduct material, person, source material, special nuclear material,  and  precautionary evacuation  shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n \n 2.(a) For facilities designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, and except where otherwise specifically provided,  amount of financial protection  means the amount specified in Item 2 of the Attachment annexed hereto, as modified by paragraph 8, Article II, with respect to common occurrences, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing for deferred retrospective premium charges).\n \n (b) For all other facilities, and except where otherwise specifically provided,  amount of financial protection  means the amount specified in Item 2 of the Attachment annexed hereto, as modified by paragraph 8, Article II, with respect to common occurrences.\n \n 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. \n \n (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\u2014\n \n 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 material  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 \n \n 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 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 shall be deemed to constitute a single nuclear incident. \n \n 4.  Extraordinary nuclear occurrence  means an event which the Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended. \n \n 5.  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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n \n (a) With respect to transportation of the radioactive material to the location, such transportation is not by pre-determination 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; \n \n (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; \n \n (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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act. \n \n 6.  Person indemnified  means the licensee and any other person who may be liable for public liability. \n \n 7.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political sudivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), 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; and (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.\n \n 8.  The location  means the location described in Item 4 of the Attachment hereto. \n \n 9.  The radioactive material  means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) which is produced as the result of operation of said reactor(s). \n \n 10.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States. \n \n Article II\n \n 1. The licensee undertakes and agrees to indemnify and hold harmless all persons indemnified, as their interest may appear, from public liability. \n \n 2. With respect to damage caused by a nuclear incident to property of any person legally liable for the incident, the licensee 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 licensee under this paragraph 2 does not apply with respect to: \n \n (a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material; \n \n (b) Property damage due to neglect of the person indemnified to use all reasonable means to save and preserve the property after knowledge of a nuclear incident; \n \n (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; and \n \n (d) The radioactive material. \n \n 3. Any obligations of the licensee under paragraphs 1 and 2 of this Article, and under subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident, including the reasonable costs of investigating and settling claims and defending suits for damage. \n \n 4. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive:\n \n (a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to:\n \n (1) Negligence; \n \n (2) Contributory negligence; \n \n (3) Assumption of the risk; \n \n (4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God. \n \n As used herein,  conduct of the claimant  includes conduct of persons through whom the claimant derives his cause of action; \n \n (b) Any issue or defense as to charitable or governmental immunity; \n \n (c) Any issue or defense based on any statute of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.\n \n The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.\n \n 5. The waivers set forth in paragraph 4, of this article:\n \n (a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages; \n \n (b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; \n \n (c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law:  Provided, however,  That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if: \n \n (1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and \n \n (2) No operating license has been issued by the NRC with respect to the nuclear reactor, and \n \n (3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility; \n \n (d) Shall not apply to any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law; \n \n (e) Shall be effective only with respect to those obligations set forth in this agreement and in contracts or other proof of financial protection; \n \n (f) Shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (1) the limit of liability provisions under subsection 170(e), of the Atomic Energy Act of 1954, as amended, and (2) the terms of this agreement and the terms of contracts or other proof of financial protection. \n \n 6. The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 7. Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided, that the licensee is then entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders. \n \n 8. With respect to a common occurrence, if the sum of the amount of financial protection established under this agreement and the amount of financial protection established under all other applicable agreements exceeds an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection, the obligations of the licensee described in paragraph 3 of this Article shall not exceed a greater proportion of an amount equal to the sum of $200,000,000 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. As used in this paragraph, and in Article III,  other applicable agreements  means each other agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act in which agreement the nuclear incident is defined as a  common occurrence. \n \n 9. 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 insolvency of any person indemnified other than the licensee, or the estate of any person indemnified other than the licensee, shall not relieve the licensee of any of his obligations hereunder. \n \n Article III\n \n 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. \n \n 2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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: \n \n (a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material; \n \n (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; \n \n (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; \n \n (d) The radioactive material. \n \n 3. [Reserved]\n \n 4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed the amount of financial protection.\n \n (b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed whichever of the following is lower: (1) The sum of the amount of financial protection established under this agreement and to all other applicable agreements; or (2) an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection.\n \n 5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 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. \n \n 7. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder. \n \n Article IV\n \n 1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n \n 2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission. \n \n Article V\n \n The parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission. \n \n Article VI\n \n The licensee agrees to pay to the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission. \n \n Article VII\n \n The term of this agreement shall commence as of the date and time specified in Item 6 of the attachment and shall terminate at the time of expiration of that license specified in Item 3 of the attachment, which is last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in subparagraph 5(b), Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement. \n \n Article VIII \n \n The following provisions are applicable to each licensee operating a facility designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more:\n \n 1. Each licensee is required to have and maintain financial protection in an amount specified in Item 2 annexed hereto, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing for deferred premium charges): Provided, however, That under such a plan for deferred premium charges, such charges for each nuclear reactor which is licensed to operate shall not exceed $63,000,000 with respect to any single nuclear incident (plus any surcharge assessed under subsection 170o.(1)(E) of the Act) nor exceed $10,000,000 per incident within one calendar year. If the licensee fails to pay assessed deferred premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and to recover the amount of such premiums from the licensee.\n \n 2. The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the restrospective premium by the insurance pools, that they will not pay the assessment. Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings. Subsequent submission of financial statements by such licensees may be requested by the Commission, as required. \n \n 3. If premiums are paid by the Commission as provided in paragraph 1, payment by the Commission shall create a lien in the amount paid in favor of the United States upon all property and rights to property, whether real or personal, belonging to such licensee. The lien shall arise at the time payment is made by the Commission and shall continue until the liability for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable. The Commission will issue a certificate of release of any such lien if it finds that the liability for the amount has been fully satisfied or has become legally unenforceable. \n \n 4. If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days. The Commission may take any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to, termination of the operating license or combined license.\n \n United States Nuclear Regulatory Commission\n \n Indemnity Agreement No. ______\n \n Attachment\n \n Item 1\u2014Licensee \n \n Address \n \n Item 2\u2014Amount of financial protection \n \n Item 3\u2014License number or numbers \n \n Item 4\u2014Location \n \n Item 5\u2014The Indemnity Agreement designated above, of which this Attachment is a part, is effective as of ______M., on the ____________ day of __________, 19____.\n \n For the United States Nuclear Regulatory Commission. \n \n By ________________________\n \n For the ________________________\n \n (Name of licensee) \n \n By ________________________\n \n Dated at Bethesda, MD, the ____________ day of __________, 19____.\n\nThis indemnity agreement No. __________ is entered into by and between the ________ (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 ).\n\nAs used in this agreement,\n\n1.  Nuclear reactor, byproduct material, person, source material, special nuclear material,  and  precautionary evacuation  shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n\n2.(a) For facilities designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, and except where otherwise specifically provided,  amount of financial protection  means the amount specified in Item 2 of the Attachment annexed hereto, as modified by paragraph 8, Article II, with respect to common occurrences, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing for deferred retrospective premium charges).\n\n(b) For all other facilities, and except where otherwise specifically provided,  amount of financial protection  means the amount specified in Item 2 of the Attachment annexed hereto, as modified by paragraph 8, Article II, with respect to common occurrences.\n\n3. (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.\n\n(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\u2014\n\ni. 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 material  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\n\nii. 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 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 shall be deemed to constitute a single nuclear incident.\n\n4.  Extraordinary nuclear occurrence  means an event which the Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.\n\n5.  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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n\n(a) With respect to transportation of the radioactive material to the location, such transportation is not by pre-determination 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;\n\n(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;\n\n(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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act.\n\n6.  Person indemnified  means the licensee and any other person who may be liable for public liability.\n\n7.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political sudivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), 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; and (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.\n\n8.  The location  means the location described in Item 4 of the Attachment hereto.\n\n9.  The radioactive material  means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) which is produced as the result of operation of said reactor(s).\n\n10.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States.\n\n1. The licensee undertakes and agrees to indemnify and hold harmless all persons indemnified, as their interest may appear, from public liability.\n\n2. With respect to damage caused by a nuclear incident to property of any person legally liable for the incident, the licensee 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 licensee under this paragraph 2 does not apply with respect to:\n\n(a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material;\n\n(b) Property damage due to neglect of the person indemnified to use all reasonable means to save and preserve the property after knowledge of a nuclear incident;\n\n(c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; and\n\n(d) The radioactive material.\n\n3. Any obligations of the licensee under paragraphs 1 and 2 of this Article, and under subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident, including the reasonable costs of investigating and settling claims and defending suits for damage.\n\n4. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive:\n\n(a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to:\n\n(1) Negligence;\n\n(2) Contributory negligence;\n\n(3) Assumption of the risk;\n\n(4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God.\n\nAs used herein,  conduct of the claimant  includes conduct of persons through whom the claimant derives his cause of action;\n\n(b) Any issue or defense as to charitable or governmental immunity;\n\n(c) Any issue or defense based on any statute of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.\n\nThe waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.\n\n5. The waivers set forth in paragraph 4, of this article:\n\n(a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages;\n\n(b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;\n\n(c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law:  Provided, however,  That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:\n\n(1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and\n\n(2) No operating license has been issued by the NRC with respect to the nuclear reactor, and\n\n(3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility;\n\n(d) Shall not apply to any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law;\n\n(e) Shall be effective only with respect to those obligations set forth in this agreement and in contracts or other proof of financial protection;\n\n(f) Shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (1) the limit of liability provisions under subsection 170(e), of the Atomic Energy Act of 1954, as amended, and (2) the terms of this agreement and the terms of contracts or other proof of financial protection.\n\n6. The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n7. Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article; provided, that the licensee is then entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders.\n\n8. With respect to a common occurrence, if the sum of the amount of financial protection established under this agreement and the amount of financial protection established under all other applicable agreements exceeds an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection, the obligations of the licensee described in paragraph 3 of this Article shall not exceed a greater proportion of an amount equal to the sum of $200,000,000 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. As used in this paragraph, and in Article III,  other applicable agreements  means each other agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act in which agreement the nuclear incident is defined as a  common occurrence.\n\n9. 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 insolvency of any person indemnified other than the licensee, or the estate of any person indemnified other than the licensee, shall not relieve the licensee of any of his obligations hereunder.\n\n1. The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.\n\n2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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:\n\n(a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material;\n\n(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;\n\n(c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation;\n\n(d) The radioactive material.\n\n3. [Reserved]\n\n4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed the amount of financial protection.\n\n(b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed whichever of the following is lower: (1) The sum of the amount of financial protection established under this agreement and to all other applicable agreements; or (2) an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection.\n\n5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n6. 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.\n\n7. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder.\n\n1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n\n2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission.\n\nThe parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission.\n\nThe licensee agrees to pay to the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission.\n\nThe term of this agreement shall commence as of the date and time specified in Item 6 of the attachment and shall terminate at the time of expiration of that license specified in Item 3 of the attachment, which is last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in subparagraph 5(b), Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement.\n\nThe following provisions are applicable to each licensee operating a facility designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more:\n\n1. Each licensee is required to have and maintain financial protection in an amount specified in Item 2 annexed hereto, and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing for deferred premium charges): Provided, however, That under such a plan for deferred premium charges, such charges for each nuclear reactor which is licensed to operate shall not exceed $63,000,000 with respect to any single nuclear incident (plus any surcharge assessed under subsection 170o.(1)(E) of the Act) nor exceed $10,000,000 per incident within one calendar year. If the licensee fails to pay assessed deferred premiums, the Commission reserves the right to pay those premiums on behalf of the licensee and to recover the amount of such premiums from the licensee.\n\n2. The Commission shall require the immediate submission of financial statements by those licensees who indicate, after an assessment of the restrospective premium by the insurance pools, that they will not pay the assessment. Such financial statements shall include, as a minimum, exhibits indicating internally generated funds from operations and accumulated retained earnings. Subsequent submission of financial statements by such licensees may be requested by the Commission, as required.\n\n3. If premiums are paid by the Commission as provided in paragraph 1, payment by the Commission shall create a lien in the amount paid in favor of the United States upon all property and rights to property, whether real or personal, belonging to such licensee. The lien shall arise at the time payment is made by the Commission and shall continue until the liability for the amount (or a judgment against the licensee arising out of such liability) is satisfied or becomes unenforceable. The Commission will issue a certificate of release of any such lien if it finds that the liability for the amount has been fully satisfied or has become legally unenforceable.\n\n4. If the Commission determines that the licensee is financially able to reimburse the Commission for a deferred premium payment made in its behalf, and the licensee, after notice of such determination by the Commission fails to make such reimbursement within 120 days, the Commission will take appropriate steps to suspend the license for 30 days. The Commission may take any further action as necessary if reimbursement is not made within the 30-day suspension period including, but not limited to, termination of the operating license or combined license.\n\nItem 5\u2014The Indemnity Agreement designated above, of which this Attachment is a part, is effective as of ______M., on the ____________ day of __________, 19____.\n\nFor the United States Nuclear Regulatory Commission.\n\nDated at Bethesda, MD, the ____________ day of __________, 19____."], ["10:10:2.0.1.1.21.6.134.6", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.94 Appendix D\u2014Form of indemnity agreement with Federal agencies.", "NRC", "", "", "[27 FR 2886, Mar. 29, 1962]", "This indemnity agreement No. D______ is entered into by and between the ________ (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 ). \n \n Article I\n \n As used in this agreement, \n \n 1.  Nuclear reactor, byproduct material, person, source material, special nuclear material,  and  precautionary evacuation  shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n \n 2. (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. \n \n (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 \n \n (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 material  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 \n \n (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 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 shall be deemed to constitute a single nuclear incident. \n \n 3.  Extraordinary nuclear occurrence  means an event which the Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended. \n \n 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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that: \n \n (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 temporary storage incidental thereto; \n \n (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; \n \n (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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act. \n \n 5.  Person indemnified  means the licensee and any other person who may be liable for public liability. \n \n 6.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), except (1) claims under State of 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; and (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. \n \n 7.  The location  means the location described in Item 3 of the Attachment hereto. \n \n 8.  The radioactive material  means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) is produced as the result of operation of said reactor(s). \n \n 9.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States. \n \n Article II\n \n 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. \n \n 2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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: \n \n (a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material; \n \n (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; \n \n (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; \n \n (d) The radioactive material. \n \n 3. [Reserved]\n \n 4. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive:\n \n (a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to:\n \n (1) Negligence; \n \n (2) Contributory negligence; \n \n (3) Assumption of the risk; \n \n (4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God. \n \n As used herein,  conduct of the claimant  includes conduct of persons through whom the claimant derives his cause of action; \n \n (b) Any issue or defense as to charitable or governmental immunity; \n \n (c) Any issue or defense based on any statute of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.\n \n The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.\n \n 5. The waivers set forth in paragraph 4 of this article:\n \n (a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages; \n \n (b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; \n \n (c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law:  Provided, however,  That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if: \n \n (1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and \n \n (2) No operating license has been issued by the NRC with respect to the nuclear reactor, and \n \n (3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility; \n \n (d) Shall not apply to any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law; \n \n (e) Shall be effective only with respect to those obligations set forth in this agreement; \n \n (f) Shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (1) the limit of liability provisions under subsection 170(e), of the Atomic Energy Act of 1954, as amended, and (2) the terms of this agreement. \n \n 6. With respect to a common occurrence, the obligations of the Commission under this Article shall apply only with respect to such public liability and 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) as in the aggregate exceed whichever of the following is lower: (1) The sum of the amount of financial protection established under all applicable agreements; or (2) an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection. As used in this Article  applicable agreements  means each agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act in which agreement the nuclear incident is defined as  common occurrence. \n \n 7. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 8. 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 lower: (a) $500,000,000 or (b) with respect to a common occurrence, $560,000,000 less the sum of the amounts of financial protection established under all applicable agreements. \n \n 9. Bankruptcy or insolvency of any person indemnified or of the estate of any person indemnified shall not relieve the Commission of any of its obligations hereunder. \n \n Article III\n \n 1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other persons indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n \n 2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission. \n \n Article IV\n \n The parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission. \n \n Article V\n \n The licensee agrees to pay to the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission. \n \n Article VI\n \n The term of this agreement shall commence as of the date and time specified in Item 4 of the attachment and shall terminate at the time of expiration of that license specified in Item 2 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 4(b), Article I of this section. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement. \n \n United States Nuclear Regulatory Commission\n \n Indemnity Agreement No. D-______\n \n attachment\n \n Item 1\u2014Licensee \n \n Address \n \n Item 2\u2014License number or numbers \n \n Item 3\u2014Location \n \n Item 4\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of ______ m., on the ______________ day of __________, 19____. \n \n For the United States Nuclear Regulatory Commission. \n \n By ________________________\n \n For the ________________________\n \n (Name of licensee) \n \n By ________________________\n \n Dated at Bethesda, MD, the ______________ day of __________, 19____.\n\nThis indemnity agreement No. D______ is entered into by and between the ________ (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 ).\n\nAs used in this agreement,\n\n1.  Nuclear reactor, byproduct material, person, source material, special nuclear material,  and  precautionary evacuation  shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n\n2. (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.\n\n(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\n\n(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 material  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\n\n(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 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 shall be deemed to constitute a single nuclear incident.\n\n3.  Extraordinary nuclear occurrence  means an event which the Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.\n\n4.  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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n\n(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 temporary storage incidental thereto;\n\n(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;\n\n(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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act.\n\n5.  Person indemnified  means the licensee and any other person who may be liable for public liability.\n\n6.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), except (1) claims under State of 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; and (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.\n\n7.  The location  means the location described in Item 3 of the Attachment hereto.\n\n8.  The radioactive material  means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) is produced as the result of operation of said reactor(s).\n\n9.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States.\n\n1. The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.\n\n2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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:\n\n(a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material;\n\n(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;\n\n(c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation;\n\n(d) The radioactive material.\n\n3. [Reserved]\n\n4. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive:\n\n(a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to:\n\n(1) Negligence;\n\n(2) Contributory negligence;\n\n(3) Assumption of the risk;\n\n(4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God.\n\nAs used herein,  conduct of the claimant  includes conduct of persons through whom the claimant derives his cause of action;\n\n(b) Any issue or defense as to charitable or governmental immunity;\n\n(c) Any issue or defense based on any statute of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.\n\nThe waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.\n\n5. The waivers set forth in paragraph 4 of this article:\n\n(a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages;\n\n(b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;\n\n(c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law:  Provided, however,  That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:\n\n(1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and\n\n(2) No operating license has been issued by the NRC with respect to the nuclear reactor, and\n\n(3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility;\n\n(d) Shall not apply to any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law;\n\n(e) Shall be effective only with respect to those obligations set forth in this agreement;\n\n(f) Shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (1) the limit of liability provisions under subsection 170(e), of the Atomic Energy Act of 1954, as amended, and (2) the terms of this agreement.\n\n6. With respect to a common occurrence, the obligations of the Commission under this Article shall apply only with respect to such public liability and 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) as in the aggregate exceed whichever of the following is lower: (1) The sum of the amount of financial protection established under all applicable agreements; or (2) an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection. As used in this Article  applicable agreements  means each agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act in which agreement the nuclear incident is defined as  common occurrence.\n\n7. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n8. 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 lower: (a) $500,000,000 or (b) with respect to a common occurrence, $560,000,000 less the sum of the amounts of financial protection established under all applicable agreements.\n\n9. Bankruptcy or insolvency of any person indemnified or of the estate of any person indemnified shall not relieve the Commission of any of its obligations hereunder.\n\n1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other persons indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n\n2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission.\n\nThe parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission.\n\nThe licensee agrees to pay to the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission.\n\nThe term of this agreement shall commence as of the date and time specified in Item 4 of the attachment and shall terminate at the time of expiration of that license specified in Item 2 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 4(b), Article I of this section. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement.\n\nItem 4\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of ______ m., on the ______________ day of __________, 19____.\n\nFor the United States Nuclear Regulatory Commission.\n\nDated at Bethesda, MD, the ______________ day of __________, 19____."], ["10:10:2.0.1.1.21.6.134.7", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.95 Appendix E\u2014Form of indemnity agreement with nonprofit educational institutions.", "NRC", "", "", "[27 FR 2887, Mar. 29, 1962]", "This indemnity agreement No. E-______ is entered into by and between the ________ (hereinafter referred to as the  licensee ) and the United States Nuclear Regulatory Commission (hereinafter referred to as the  Commission ) pursuant to subsection 170(k) of the Atomic Energy Act of 1954, as amended (hereinafter referred to as  the Act ). \n \n Article I\n \n As used in this agreement, \n \n 1.  Nuclear reactor, byproduct material, person, source material, special nuclear material,  and  precautionary evacuation  shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n \n 2. (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 use of property, arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of the radioactive material. \n \n (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 \n \n 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 material  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 \n \n 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 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 shall be deemed to constitute a single nuclear incident. \n \n 3.  Extraordinary nuclear occurrence  means an event which the Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended. \n \n 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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n \n (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 temporary storage incidental thereto; \n \n (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; \n \n (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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act. \n \n 5.  Person indemnified  means the licensee and any other person who may be liable for public liability. \n \n 6.  Public liability  means are legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), except (1) claims under State or Federal Workmen's Compensation Act 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, or 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 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.\n \n 7.  The location  means the location described in Item 3 of the Attachment hereto. \n \n 8.  The radioactive material  means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) which is produced as the result of operation of said reactor(s). \n \n 9.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States. \n \n Article II\n \n 1. Any obligations of the licensee under subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability shall not in the aggregate exceed $250,000 with respect to any nuclear incident. \n \n 2. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive:\n \n (a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to \n \n (1) Negligence; \n \n (2) Contributory negligence; \n \n (3) Assumption of the risk; \n \n (4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God. \n \n As used herein,  conduct of the claimant  includes conduct of persons through whom the claimant derives his cause of action; \n \n (b) Any issue or defense as to charitable or governmental immunity: \n \n (c) Any issue or defense based on any statute of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.\n \n The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.\n \n 3. The waivers set forth in paragraph 2 of this article:\n \n (a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages; \n \n (b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; \n \n (c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law:  Provided, however,  That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if: \n \n (1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and \n \n (2) No operating license has been issued by the NRC with respect to the nuclear reactor, and \n \n (3) The claimant is not employed in connection with the possession, storage, use, or transfer of nuclear material at the facility; \n \n (d) Shall not apply to any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law; \n \n (e) Shall be effective only with respect to those obligations set forth in this agreement; \n \n (f) Shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (1) the limit of liability provisions under subsection 170(e) of the Atomic Energy Act of 1954, as amended, and (b) the terms of this agreement. \n \n Article III\n \n 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. \n \n 2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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: \n \n (a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material; \n \n (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; \n \n (c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation; \n \n (d) The radioactive material. \n \n 3. [Reserved]\n \n 4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed $250,000.\n \n (b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed whichever of the following is lower: (1) The sum of the amounts of financial protection established under all applicable agreements; or (2) an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection. As used in this Article  applicable agreements  means each agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act in which agreement the nuclear incident is defined as a  common occurrence. \n \n 5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 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 which ever of the following is the lower: (a) $500,000,000 or (b) with respect to a common occurrence, $560,000,000 less the sum of the amounts of financial protection established under all applicable agreements. \n \n 7. If the licensee is immune from public liability because it is a state agency, the Commission shall make payments under the agreement in the same manner and to the same extent as the Commission would be required to do if the licensee were not such a state agency. \n \n 8. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified or of the estate of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder. \n \n Article IV\n \n 1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim including such legal costs of the licensee as are approved by the Commission and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n \n 2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission. \n \n Article V\n \n The parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission. \n \n Article VI\n \n The licensee agrees to pay to the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission. \n \n Article VII\n \n The term of this agreement shall commence as of the date and time specified in Item 4 of the Attachment and shall terminate at the time of expiration of that license specified in Item 2 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in subparagraph 4(b), Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement. \n \n United States Nuclear Regulatory Commission\n \n      Indemnity Agreement No. E-____\n \n attachment\n \n Item 1\u2014Licensee __________________________\n \n Address __________________________\n \n Item 2\u2014License number or numbers ______\n \n Item 3\u2014Location __________________________\n \n Item 4\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of ______ m., on the ______________ day of ____________________, 19____. \n \n For the United States Nuclear Regulatory Commission. \n \n By ____________________________\n \n For the ____________________________\n \n By ____________________________\n \n (Name of licensee) \n \n Dated at Bethesda, MD, the ____________ day of ________________, 19____.\n\nThis indemnity agreement No. E-______ is entered into by and between the ________ (hereinafter referred to as the  licensee ) and the United States Nuclear Regulatory Commission (hereinafter referred to as the  Commission ) pursuant to subsection 170(k) of the Atomic Energy Act of 1954, as amended (hereinafter referred to as  the Act ).\n\nAs used in this agreement,\n\n1.  Nuclear reactor, byproduct material, person, source material, special nuclear material,  and  precautionary evacuation  shall have the meanings given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n\n2. (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 use of property, arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of the radioactive material.\n\n(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\n\ni. 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 material  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\n\nii. 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 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 shall be deemed to constitute a single nuclear incident.\n\n3.  Extraordinary nuclear occurrence  means an event which the Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.\n\n4.  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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n\n(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 temporary storage incidental thereto;\n\n(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;\n\n(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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act.\n\n5.  Person indemnified  means the licensee and any other person who may be liable for public liability.\n\n6.  Public liability  means are legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), except (1) claims under State or Federal Workmen's Compensation Act 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, or 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 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.\n\n7.  The location  means the location described in Item 3 of the Attachment hereto.\n\n8.  The radioactive material  means source, special nuclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by, the nuclear reactor or reactors subject to the license or licenses designated in the Attachment hereto, or (2) which is produced as the result of operation of said reactor(s).\n\n9.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States.\n\n1. Any obligations of the licensee under subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability shall not in the aggregate exceed $250,000 with respect to any nuclear incident.\n\n2. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive:\n\n(a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to\n\n(1) Negligence;\n\n(2) Contributory negligence;\n\n(3) Assumption of the risk;\n\n(4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God.\n\nAs used herein,  conduct of the claimant  includes conduct of persons through whom the claimant derives his cause of action;\n\n(b) Any issue or defense as to charitable or governmental immunity:\n\n(c) Any issue or defense based on any statute of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.\n\nThe waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.\n\n3. The waivers set forth in paragraph 2 of this article:\n\n(a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages;\n\n(b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;\n\n(c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law:  Provided, however,  That with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:\n\n(1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and\n\n(2) No operating license has been issued by the NRC with respect to the nuclear reactor, and\n\n(3) The claimant is not employed in connection with the possession, storage, use, or transfer of nuclear material at the facility;\n\n(d) Shall not apply to any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law;\n\n(e) Shall be effective only with respect to those obligations set forth in this agreement;\n\n(f) Shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (1) the limit of liability provisions under subsection 170(e) of the Atomic Energy Act of 1954, as amended, and (b) the terms of this agreement.\n\n1. The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.\n\n2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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:\n\n(a) Property which is located at the location and used in connection with the licensee's possession, use or transfer of the radioactive material;\n\n(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;\n\n(c) If the nuclear incident occurs in the course of transportation of the radioactive material, the transporting vehicle and containers used in such transportation;\n\n(d) The radioactive material.\n\n3. [Reserved]\n\n4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed $250,000.\n\n(b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed whichever of the following is lower: (1) The sum of the amounts of financial protection established under all applicable agreements; or (2) an amount equal to the sum of $200,000,000 and the amount available as secondary financial protection. As used in this Article  applicable agreements  means each agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act in which agreement the nuclear incident is defined as a  common occurrence.\n\n5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n6. 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 which ever of the following is the lower: (a) $500,000,000 or (b) with respect to a common occurrence, $560,000,000 less the sum of the amounts of financial protection established under all applicable agreements.\n\n7. If the licensee is immune from public liability because it is a state agency, the Commission shall make payments under the agreement in the same manner and to the same extent as the Commission would be required to do if the licensee were not such a state agency.\n\n8. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified or of the estate of the licensee or any other person indemnified shall not relieve the Commission of any of its obligations hereunder.\n\n1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim including such legal costs of the licensee as are approved by the Commission and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n\n2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission.\n\nThe parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission.\n\nThe licensee agrees to pay to the Commission such fees as are established by the Commission pursuant to regulations or orders of the Commission.\n\nThe term of this agreement shall commence as of the date and time specified in Item 4 of the Attachment and shall terminate at the time of expiration of that license specified in Item 2 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in subparagraph 4(b), Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or any obligation of the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement.\n\nItem 4\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of ______ m., on the ______________ day of ____________________, 19____.\n\nFor the United States Nuclear Regulatory Commission.\n\nDated at Bethesda, MD, the ____________ day of ________________, 19____."], ["10:10:2.0.1.1.21.6.134.8", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.96 Appendix F\u2014Indemnity locations.", "NRC", "", "", "[72 FR 49565, Aug. 28, 2007]", "(a)  Geographical boundaries of indemnity locations.  (1) In every indemnity agreement between the Commission and a licensee which affords indemnity protection for the preoperational storage of fuel at the site of a nuclear power reactor under construction, the geographical boundaries of the indemnity location will include the entire construction area of the nuclear power reactor, as determined by the Commission. Such area will not necessarily be coextensive with the indemnity location which will be established at the time an operating license or combined license under 10 CFR part 52 is issued for such additional nuclear power reactors.\n \n (2) In every indemnity agreement between the Commission and a licensee which affords indemnity protection for an existing nuclear power reactor, the geographical boundaries of the indemnity location shall include the entire construction area of any 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 indemnity location which will be established at the time an operating license or combined license is issued for such additional nuclear power reactors.\n \n (3) This section is effective May 1, 1973, as to construction permits issued before March 2, 1973, and, as to construction permits and combined licenses issued on or after March 2, 1973, the provisions of this section will apply no later than such time as a construction permit or combined license is issued authorizing construction of any additional nuclear power reactor.\n \n (b) [Reserved]\n\n(a)  Geographical boundaries of indemnity locations.  (1) In every indemnity agreement between the Commission and a licensee which affords indemnity protection for the preoperational storage of fuel at the site of a nuclear power reactor under construction, the geographical boundaries of the indemnity location will include the entire construction area of the nuclear power reactor, as determined by the Commission. Such area will not necessarily be coextensive with the indemnity location which will be established at the time an operating license or combined license under 10 CFR part 52 is issued for such additional nuclear power reactors.\n\n(2) In every indemnity agreement between the Commission and a licensee which affords indemnity protection for an existing nuclear power reactor, the geographical boundaries of the indemnity location shall include the entire construction area of any 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 indemnity location which will be established at the time an operating license or combined license is issued for such additional nuclear power reactors.\n\n(3) This section is effective May 1, 1973, as to construction permits issued before March 2, 1973, and, as to construction permits and combined licenses issued on or after March 2, 1973, the provisions of this section will apply no later than such time as a construction permit or combined license is issued authorizing construction of any additional nuclear power reactor.\n\n(b) [Reserved]"], ["10:10:2.0.1.1.21.6.134.9", 10, "Energy", "I", "", "140", "PART 140\u2014FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS", "F", "Subpart F\u2014Violations", "", "\u00a7 140.107 Appendix G\u2014Form 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.", "NRC", "", "", "[42 FR 51, Jan. 3, 1977, as amended at 42 FR 20141, Apr. 18, 1977; 44 FR 20633, Apr. 6, 1979; 44 FR 24045, Apr. 24, 1979; 45 FR 37410, June 3, 1980; 49 FR 11152, Mar. 26, 1984; 54 FR 24160, June 6, 1989]", "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. \n \n Article I \n \n As used in this agreement: \n \n 1.  By product material, person, source material, special nuclear material, precautionary evacuation,  and  extraordinary nuclear occurrence  shall have the meaning given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n \n 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. \n \n 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. \n \n (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: \n \n (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 material  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 \n \n (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 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 shall be deemed to constitute a single nuclear incident. \n \n 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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n \n (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 temporary storage incidental thereto; \n \n (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; \n \n (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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act. \n \n 5.  Person indemnified  means the licensee and any other person who may be liable for public liability. \n \n 6.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), 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; and (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.\n \n 7.  The location  means the location described in Item 4 of the Attachment hereto. \n \n 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 fuel fabrication plant or plants and is subject to the license or licenses designated in the Attachment hereto, or (2) is produces as the result of the operation of said plant or plants or (b) any source, special nuclear, or byproduct material which is waste or contamination from material described in paragraph 8(a). The words  used or to be used  and  processed or to be processed  in this paragraph cover source, special nuclear or byproduct material which is  in the course of transportation  as used in the agreement or is received at the plant for use or processing in the plant but which is, in fact, for any reason, not so used or processed. \n \n 9.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States. \n \n Article II \n \n 1. At all times during the term of the license or licenses designated in Item 3 of the Attachment hereto, the licensee will maintain financial protection in the amount specified in Item 2 of the Attachment and in the form of the nuclear energy liability insurance policy designated in the Attachment. If more than one license is designated in Item 3 of the Attachment, the licensee agrees to maintain such financial protection until the end of the term of that license which will be the last to expire. The licensee shall, notwithstanding the expiration, termination, modification, amendment, suspension of revocation of any license or licenses designated in Item 3 of the Attachment, maintain such financial protection in effect until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in subparagraph 4(b), Article I, or until the Commission authorizes the termination or the modification of such financial protection. The Commission will not unreasonably withhold such authorization. \n \n 2. In the event of any payment by the insurer or insurers under a policy or policies specified in Item 5 of the Attachment hereto which reduces the aggregate limit of such policy or policies below the amount of financial protection, the licensee will promptly apply to his insurers for reinstatement of the amount specified in Item 2a of the Attachment (without reference to paragraph b of Item 2) and will make all reasonable efforts to obtain such reinstatement. In the event that the licensee has not obtained reinstatement of such amount within ninety days after the date of such reduction, and in the absence of good cause shown to the contrary, the Commission may issue an order requiring the licensee to furnish financial protection for such amount in another form. \n \n 3. Any 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 hereto, shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident, including the reasonable costs of investigating and settling claims and defending suits for damage. \n \n 4. The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 5. Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article: provided, that the licensee is then entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders. \n \n 6. With respect to any common occurrence,\n \n (a) If the sum of the limit of liability of any Nuclear Energy Liability-Property Insurance Association policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Nuclear Energy Liability-Property Insurance Association exceeds $155,000,000, the amount of financial protection specified in Item 2 a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $155,000,000 as the limit of liability of the Nuclear Energy Liability-Property Insurance Association 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 Nuclear Energy Liability-Property Insurance Association;\n \n (b) If the sum of the limit of liability of any Mutual Atomic Energy Liability Underwriters policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters exceeds $45,000,000, the amount of financial protection specified in Item 2 a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $45,000,000 as the limit of liability of the Mutual Atomic Energy Liability 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; \n \n (c) If any of the other applicable agreements is with a person who has furnished financial protection in a form other than a nuclear energy liability insurance policy (facility form) issued by Nuclear Energy Liability-Property Insurance Association or Mutual Atomic Energy Liability Underwriters, 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 $200,000,000 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 $200,000,000 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.\n \n (d) As used in this paragraph 6., Article II and in Article III,  other applicable agreements  means each other agreement entered into by the Commission pursuant to subsection 170(c). 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 incurred by the insurers in investigating and settling claims and defending suits for damage.\n \n 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 insolvency 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. \n \n Article III \n \n 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. \n \n 2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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: \n \n (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 Item 5 of the Attachment; \n \n (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; \n \n (c) If the nuclear incident occurs in the course of transportation of the raidoactive material, the transporting vehicle and containers used in such transportation; \n \n (d) The radioactive material. \n \n 3. [Reserved]\n \n 4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed the amount of financial protection.\n \n (b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed $200,000,000.\n \n 5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement. \n \n 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. \n \n 7. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified, or of the estate of the licensee or any other person indemnified, shall not relieve the Commission of any of its obligations hereunder. \n \n Article IV \n \n 1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n \n 2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission. \n \n Article V \n \n The parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission. \n \n Article VI \n \n The licensee agrees to pay the Commission such fees as are established by the Commission pursuant to regulations or others of the Commission. \n \n Article VII \n \n The term of this agreement shall commence as of the date and time specified in Item 6 of the Attachment and shall terminate at the time of expiration of that license specified in Item 3 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 4(b), Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement. \n \n United States Nuclear Regulatory Commission \n \n attachment \n \n Indemnity Agreement No. ________________\n \n Item 1\u2014Licensee. __________________________\n \n Item 2\u2014\n \n a. Amount of financial protection ________\n \n b. With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (i) reduced to the extent that any payment made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachment reduces the aggregate amount of such insurance policies below the amount specified in Item 2a and (ii) restored to the extent that, following such reduction, the aggregate amount of such insurance polices is reinstated. \n \n Item 3\u2014License number or numbers______\n \n Item 4\u2014Location __________________________\n \n Item 5\u2014Insurance Policy No.(s)____________\n \n Item 6\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of 12:01 a.m., on the ______________ day of ______________, 19____. \n \n For the U.S. Nuclear Regulatory Commission.\n \n   For \n \n   By\n \n Dated at Bethesda, MD, the ________\n \n day of __________ 19____.\n\nThis 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.\n\nAs used in this agreement:\n\n1.  By product material, person, source material, special nuclear material, precautionary evacuation,  and  extraordinary nuclear occurrence  shall have the meaning given them in the Atomic Energy Act of 1954, as amended, and the regulations issued by the Commission.\n\n2. 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.\n\n3. (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.\n\n(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:\n\n(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 material  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\n\n(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 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 shall be deemed to constitute a single nuclear incident.\n\n4.  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, and moving from one person licensed by the Commission to another person licensed by the Commission, including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:\n\n(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 temporary storage incidental thereto;\n\n(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;\n\n(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 agreement entered into by the Commission pursuant to subsection 170(c) or (k) of the Act.\n\n5.  Person indemnified  means the licensee and any other person who may be liable for public liability.\n\n6.  Public liability  means any legal liability arising out of or resulting from a nuclear incident or precautionary evacuation (including all reasonable additional costs incurred by a State, or a political subdivision of a State, in the course of responding to a nuclear incident or precautionary evacuation), 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; and (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.\n\n7.  The location  means the location described in Item 4 of the Attachment hereto.\n\n8.  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 fuel fabrication plant or plants and is subject to the license or licenses designated in the Attachment hereto, or (2) is produces as the result of the operation of said plant or plants or (b) any source, special nuclear, or byproduct material which is waste or contamination from material described in paragraph 8(a). The words  used or to be used  and  processed or to be processed  in this paragraph cover source, special nuclear or byproduct material which is  in the course of transportation  as used in the agreement or is received at the plant for use or processing in the plant but which is, in fact, for any reason, not so used or processed.\n\n9.  United States  when used in a geographical sense includes Puerto Rico and all territories and possessions of the United States.\n\n1. At all times during the term of the license or licenses designated in Item 3 of the Attachment hereto, the licensee will maintain financial protection in the amount specified in Item 2 of the Attachment and in the form of the nuclear energy liability insurance policy designated in the Attachment. If more than one license is designated in Item 3 of the Attachment, the licensee agrees to maintain such financial protection until the end of the term of that license which will be the last to expire. The licensee shall, notwithstanding the expiration, termination, modification, amendment, suspension of revocation of any license or licenses designated in Item 3 of the Attachment, maintain such financial protection in effect until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in subparagraph 4(b), Article I, or until the Commission authorizes the termination or the modification of such financial protection. The Commission will not unreasonably withhold such authorization.\n\n2. In the event of any payment by the insurer or insurers under a policy or policies specified in Item 5 of the Attachment hereto which reduces the aggregate limit of such policy or policies below the amount of financial protection, the licensee will promptly apply to his insurers for reinstatement of the amount specified in Item 2a of the Attachment (without reference to paragraph b of Item 2) and will make all reasonable efforts to obtain such reinstatement. In the event that the licensee has not obtained reinstatement of such amount within ninety days after the date of such reduction, and in the absence of good cause shown to the contrary, the Commission may issue an order requiring the licensee to furnish financial protection for such amount in another form.\n\n3. Any 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 hereto, shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident, including the reasonable costs of investigating and settling claims and defending suits for damage.\n\n4. The obligations of the licensee under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n5. Upon the expiration or revocation of any license designated in Item 3 of the Attachment, the Commission will enter into an appropriate amendment of this agreement with the licensee reducing the amount of financial protection required under this Article: provided, that the licensee is then entitled to a reduction in the amount of financial protection under applicable Commission regulations and orders.\n\n6. With respect to any common occurrence,\n\n(a) If the sum of the limit of liability of any Nuclear Energy Liability-Property Insurance Association policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Nuclear Energy Liability-Property Insurance Association exceeds $155,000,000, the amount of financial protection specified in Item 2 a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $155,000,000 as the limit of liability of the Nuclear Energy Liability-Property Insurance Association 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 Nuclear Energy Liability-Property Insurance Association;\n\n(b) If the sum of the limit of liability of any Mutual Atomic Energy Liability Underwriters policy designated in Item 5 of the Attachment and the limits of liability of all other nuclear energy liability insurance policies (facility form) applicable to such common occurrence and issued by Mutual Atomic Energy Liability Underwriters exceeds $45,000,000, the amount of financial protection specified in Item 2 a and b of the Attachment shall be deemed to be reduced by that proportion of the difference between said sum and $45,000,000 as the limit of liability of the Mutual Atomic Energy Liability 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;\n\n(c) If any of the other applicable agreements is with a person who has furnished financial protection in a form other than a nuclear energy liability insurance policy (facility form) issued by Nuclear Energy Liability-Property Insurance Association or Mutual Atomic Energy Liability Underwriters, 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 $200,000,000 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 $200,000,000 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.\n\n(d) As used in this paragraph 6., Article II and in Article III,  other applicable agreements  means each other agreement entered into by the Commission pursuant to subsection 170(c). 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 incurred by the insurers in investigating and settling claims and defending suits for damage.\n\n7. 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 insolvency 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.\n\n1. The Commission undertakes and agrees to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability.\n\n2. With respect to damage caused by a nuclear incident to property of any person legally liable for the nuclear incident, the 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:\n\n(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 Item 5 of the Attachment;\n\n(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;\n\n(c) If the nuclear incident occurs in the course of transportation of the raidoactive material, the transporting vehicle and containers used in such transportation;\n\n(d) The radioactive material.\n\n3. [Reserved]\n\n4. (a) The obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed the amount of financial protection.\n\n(b) With respect to a common occurrence, the obligations of the Commission under this agreement shall apply only with respect to such public liability and 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) as in the aggregate exceed $200,000,000.\n\n5. The obligations of the Commission under this agreement shall apply only with respect to nuclear incidents occurring during the term of this agreement.\n\n6. 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.\n\n7. The obligations of the Commission under this agreement, except to the licensee for damage to property of the licensee, shall not be affected by any failure on the part of the licensee to fulfill its obligations under this agreement. Bankruptcy or insolvency of the licensee or any other person indemnified, or of the estate of the licensee or any other person indemnified, shall not relieve the Commission of any of its obligations hereunder.\n\n1. When the Commission determines that the United States will probably be required to make indemnity payments under the provisions of this agreement, the Commission shall have the right to collaborate with the licensee and other persons indemnified in the settlement and defense of any claim (provided that no government indemnity that would otherwise be available to pay public liability claims is used for these purposes) and shall have the right (a) to require the prior approval of the Commission for the settlement or payment of any claim or action asserted against the licensee or other person indemnified for public liability or damage to property of persons legally liable for the nuclear incident which claim or action the licensee or the Commission may be required to indemnify under this agreement; and (b) to appear through the Attorney General of the United States on behalf of the licensee or other person indemnified, take charge of such action and settle or defend any such action. If the settlement or defense of any such action or claim is undertaken by the Commission, the licensee shall furnish all reasonable assistance in effecting a settlement or asserting a defense.\n\n2. Neither this agreement nor any interest therein nor claim thereunder may be assigned or transferred without the approval of the Commission.\n\nThe parties agree that they will enter into appropriate amendments of this agreement to the extent that such amendments are required pursuant to the Atomic Energy Act of 1954, as amended, or licenses, regulations or orders of the Commission.\n\nThe licensee agrees to pay the Commission such fees as are established by the Commission pursuant to regulations or others of the Commission.\n\nThe term of this agreement shall commence as of the date and time specified in Item 6 of the Attachment and shall terminate at the time of expiration of that license specified in Item 3 of the Attachment, which is the last to expire; provided that, except as may otherwise be provided in applicable regulations or orders of the Commission, the term of this agreement shall not terminate until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in paragraph 4(b), Article I. Termination of the term of this agreement shall not affect any obligation of the licensee or the Commission under this agreement with respect to any nuclear incident occurring during the term of this agreement.\n\nIndemnity Agreement No. ________________\n\nItem 1\u2014Licensee. __________________________\n\nItem 2\u2014\n\na. Amount of financial protection ________\n\nb. With respect to any nuclear incident, the amount specified in Item 2a of this Attachment shall be deemed to be (i) reduced to the extent that any payment made by the insurer or insurers under a policy or policies specified in Item 5 of this Attachment reduces the aggregate amount of such insurance policies below the amount specified in Item 2a and (ii) restored to the extent that, following such reduction, the aggregate amount of such insurance polices is reinstated.\n\nItem 3\u2014License number or numbers______\n\nItem 4\u2014Location __________________________\n\nItem 5\u2014Insurance Policy No.(s)____________\n\nItem 6\u2014The indemnity agreement designated above, of which this Attachment is a part, is effective as of 12:01 a.m., on the ______________ day of ______________, 19____.\n\nFor the U.S. Nuclear Regulatory Commission.\n\nDated at Bethesda, MD, the ________\n\nday of __________ 19____."], ["17:17:2.0.1.1.12.1.1.1", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "A", "Subpart A\u2014Organization", "", "\u00a7 140.1 Headquarters office.", "CFTC", "", "", "[48 FR 2734, Jan. 21, 1983, as amended at 60 FR 49335, Sept. 25, 1995]", "(a)  General.  The headquarters office of the Commission is located at Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581.\n\n(b) [Reserved]"], ["17:17:2.0.1.1.12.1.1.2", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "A", "Subpart A\u2014Organization", "", "\u00a7 140.2 Regional office\u2014Regional Administrator.", "CFTC", "", "", "[69 FR 41426, July 9, 2004, as amended at 72 FR 16269, Apr. 4, 2007; 89 FR 71813, Sept. 4, 2024]", "Each of the Regional offices described herein functions as set forth in this section under the direction of a Regional Administrator who, as a collateral duty, oversees the administration of the office and represents the Commission in negotiations with employee union officials and in interactions with external parties. Each regional office has delegated authority for the enforcement of the Act and administration of the programs of the Commission in the particular regions.\n\n(a) The Eastern Regional Office is located at 290 Broadway, 6th Floor, New York, NY 10007 and is responsible for enforcement of the Act and administration of programs of the Commission in the States of Alabama, Connecticut, Delaware, Florida, Georgia, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, and West Virginia.\n\n(b) The Central Regional Office is located at 77 W. Jackson Blvd., Suite 800, Chicago, IL 60604 and is responsible for enforcement of the Act and administration of programs of the Commission in the States of Illinois, Indiana, Michigan, Ohio and Wisconsin.\n\n(c) The Southwestern Regional Office is located at 2600 Grand Blvd, Suite 210, Kansas City, MO 64108, and is responsible for enforcement of the Act and administration of the programs of the Commission in the States of Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming."], ["17:17:2.0.1.1.12.2.1.1", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.10 The Commission.", "CFTC", "", "", "[41 FR 28474, July 12, 1976]", "The Commission is composed of a Chairman and four other Commissioners, not more than three of whom may be members of the same political party, who are appointed by the President, with the advice and consent of the Senate, for 5-year terms, one term ending each year. The Commission is assisted by a staff, which includes lawyers, economists, accountants, investigators and examiners, as well as administrative and clerical employees."], ["17:17:2.0.1.1.12.2.1.10", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.24 Control and accountability procedures.", "CFTC", "", "", "[48 FR 15464, Apr. 11, 1983, as amended at 61 FR 21955, May 13, 1996; 89 FR 71813, Sept. 4, 2024]", "Persons entrusted with classified information shall be responsible for providing protection and accountability for such information at all times and for locking classified information in approved security equipment whenever it is not in use or under direct supervision of authorized persons.\n\n(a)  General safeguards.  (1) Classified material must not be left in unoccupied rooms or be left inadequately protected in an occupied office, or one occupied by other than security cleared employees. Under no circumstances shall classified material be placed in desk drawers or anywhere other than in approved storage containers.\n\n(2) Employees using classified material shall take every precaution to prevent deliberate or casual inspection of it by unauthorized persons. Classified material shall be kept under constant surveillance and face down or covered when not in use.\n\n(3) All copies of classified documents and any informal material such as memoranda, rough drafts, shorthand notes, carbon copies, carbon paper, typewriter ribbons, recording discs, spools and tapes shall be given the same classification and secure handling as the classified information they contain.\n\n(4) Commission personnel authorized to use classified materials will obtain them from the Executive Director or their designee on the day required and return them to the Executive Director or their designee before the close of business on the same day.\n\n(5) Classified information shall not be revealed in telephone or telecommunications conversations.\n\n(6) Any person who has knowledge of the loss or possible compromise of classified information shall immediately report the circumstances either to the Security Officer or to the Executive Director or their designee in consultation with the General Counsel or their designee. The Executive Director or his delegee shall initiate a preliminary inquiry to determine the circumstances surrounding an actual or possible compromise, and to determine what corrective measures and administrative, disciplinary, or legal action is necessary.\n\n(b)  Reproduction controls.  (1) The number of copies of documents containing classified information must be kept to the minimum required by operational necessity to decrease the risk of compromise and reduce storage costs.\n\n(2) Top Secret documents, except for the controlled initial distribution of information processed or received electrically, shall not be reproduced without the consent of the originator.\n\n(3) Unless restricted by the originating agency, Secret and Confidential documents may be reproduced to the extent required by operational needs.\n\n(4) Reproduced copies of classified documents shall be subject to the same accountability and controls as the original documents.\n\n(5) Classified reproduction shall be controlled by persons with the proper level of security clearance.\n\n(6) Records shall be maintained to show the number and distribution of reproduced copies to all Top Secret documents, of all classified documents covered by special access programs distributed outside the originating agency, and of all Secret and Confidential documents which are marked with special dissemination and reproduction limitations.\n\n(7) Unauthorized reproduction of classified material will be subject to appropriate disciplinary action.\n\n(c)  Storage of classified material.  (1) All classified material in the custody of the Commission will be stored in accordance with the guidelines set forth in 32 CFR 2001.43.\n\n(2) In addition, the Commission remains subject to the provisions of 32 CFR part 2001,  et seq.,  insofar as they are applicable to classified materials held by the Commission."], ["17:17:2.0.1.1.12.2.1.11", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.61 [Reserved]", "CFTC", "", "", "", ""], ["17:17:2.0.1.1.12.2.1.12", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.72 Delegation of authority to disclose confidential information to a registered entity, swap execution facility, swap data repository, registered futures association or self-regulatory organization.", "CFTC", "", "", "[48 FR 22134, May 17, 1983, as amended at 57 FR 20638, May 14, 1992; 61 FR 1709, Jan. 23, 1996; 66 FR 1576, Jan. 9, 2001; 67 FR 62352, Oct. 7, 2002; 73 FR 79609, Dec. 30, 2008; 77 FR 66346, Nov. 2, 2012; 78 FR 21523, Apr. 11, 2013; 78 FR 22419, Apr. 16, 2013; 82 FR 28769, June 26, 2017; 89 FR 71813, Sept. 4, 2024]", "(a) Pursuant to the authority granted under sections 2(a)(11), 8a(5) and 8a(6) of the Act, the Commission hereby delegates, until such time as the Commission orders otherwise, to the Executive Director, the Director of the Market Participants Division, the Director of the Division of Clearing and Risk, the Chief Accountant, the General Counsel, the Director of the Division of Market Oversight, the Director of the Division of Data, the Director of the Division of Enforcement, the Chief Economist of the Office of the Chief Economist, the Director of the Office of International Affairs, or such other employee or employees as the General Counsel, Directors, Chief Accountant or Chief Economist each may designate, the authority to disclose to an official of any registered entity, swap execution facility, swap data repository, registered futures association, or self-regulatory organization as defined in section 3(a)(26) of the Securities Exchange Act of 1934, any information necessary or appropriate to effectuate the purposes of the Act, including, but not limited to, the full facts concerning any transaction or market operation, including the names of the parties thereto. This authority to disclose shall be based on a determination that the transaction or market operation disrupts or tends to disrupt any market or is otherwise harmful or against the best interests of producers, consumers, or investors or that disclosure is necessary or appropriate to effectuate the purposes of the Act.\n\n(b) Disclosure under this section shall only be made to a registered entity, swap execution facility, swap data repository, registered futures association or self-regulatory organization official who is named in a list filed with the Commission by the chief executive officer of the registered entity, swap execution facility, swap data repository, registered futures association or self-regulatory organization, which sets forth the official's name, business address and telephone number. The chief executive officer shall thereafter notify the Commission of any deletions or additions to the list of officials authorized to receive disclosures under this section. The original list and any supplemental list required by this paragraph shall be filed with the Secretary of the Commission, and a copy thereof shall also be filed with the Regional Administrator for the region in which the registered entity, swap execution facility, or swap data repository is located or in which the registered futures association or self-regulatory organization has its principal office.\n\n(c) Notwithstanding the provisions of paragraph (a) of this section, in any case in which a Commission employee delegated authority under this section believes it appropriate, he or she may submit to the Commission for its consideration the question of whether disclosure of information should be made.\n\n(d) For purposes of this section, the term \u201cofficial\u201d shall mean any officer or member of a committee of a registered entity, swap execution facility, swap data repository, registered futures association or self-regulatory organization who is specifically charged with market surveillance or audit or investigative responsibilities, or their duly authorized representative or agent, who is named on the list filed pursuant to paragraph (b) of this section or any supplement thereto.\n\n(e) For the purposes of this section, the term \u201cself-regulatory organization\u201d shall mean the same as that defined in section 3(a) (26) of the Securities Exchange Act of 1934.\n\n(f) Any registered entity, swap execution facility, swap data repository, registered futures association or self-regulatory organization receiving information from the Commission under these provisions shall not disclose such information except that disclosure may be made in any self-regulatory action or proceeding."], ["17:17:2.0.1.1.12.2.1.13", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.73 Delegation of authority to disclose information to United States, States, and foreign government agencies and foreign futures authorities.", "CFTC", "", "", "[48 FR 22135, May 17, 1983, as amended at 57 FR 20638, May 14, 1992; 61 FR 1709, Jan. 23, 1996; 66 FR 1576, Jan. 9, 2001; 67 FR 62352, Oct. 7, 2002; 73 FR 79609, Dec. 30, 2008; 78 FR 22419, Apr. 16, 2013; 82 FR 28770, June 26, 2017; 89 FR 71813, Sept. 4, 2024]", "(a) Pursuant to sections 2(a)(11), 8a(5) and 8(e) of the Act, the Commission hereby delegates, until such time as the Commission orders otherwise, to the General Counsel, the Director of the Division of Enforcement, the Director of the Division of Data, the Director of the Division of Market Oversight, the Director of the Market Participants Division, the Director of the Division of Clearing and Risk, the Chief Economist of the Office of the Chief Economist, the Director of the Office of International Affairs, or such other employee or employees as the General Counsel, Chief Economist or Directors listed in this section each may designate the authority to furnish information in the possession of the Commission obtained in connection with the administration of the Act, upon written request, to:\n\n(1) Any department or agency of the United States, including for this purpose an independent regulatory agency, acting within the scope of its jurisdiction;\n\n(2) Any department or agency of any State or any political subdivision thereof, acting within the scope of its jurisdiction; or\n\n(3) Any foreign futures authority, as defined in section 1a(10) of the Act, or any department or agency of any foreign government or political subdivision thereof, acting within the scope of its jurisdiction, provided that the Commission official making the disclosure is satisfied that the information will not be disclosed except in connection with an adjudicatory action or proceeding brought under the laws of such foreign government or political subdivision to which such foreign government or political subdivision or any department or agency thereof, or foreign futures authority is a party.\n\n(b) Any disclosure made pursuant to paragraph (a) of this section shall be made with the concurrence of the Director of the Division of Enforcement or in their absence a Deputy Director of the Division of Enforcement. Provided, however, that no such concurrence is necessary for the Director of Market Oversight or in their absence each Deputy Director of the Division to release information under paragraph (a)(1) of this section concerning current or on-going market transactions or operations.\n\n(c) In furnishing information under this delegation pursuant to paragraphs (a)(1) and (2) of this section, the Commission official making the disclosure shall remind the department or agency involved that section 8(e) of the Act prohibits the disclosure by such department or agency of information that would separately disclose the business transactions or market positions of any person and trade secrets or names of customers except in an action or proceeding under the laws of the United States, the State, or a political subdivision thereof to which the department or the agency of either the state or political subdivision, the Commission, or the United States is a party.\n\n(d) This delegation shall not affect any other delegation which the Commission has made or may make, which authorizes any other officer or employee of the Commission to furnish information to governmental bodies on the Commission's behalf.\n\n(e) Notwithstanding the provisions of paragraph (a) of this section, in any case in which any employee delegated authority therein believes it appropriate the matter may be submitted to the Commission for its consideration. Nothing in this section shall prohibit the Commission from exercising the authority delegated in paragraph (a) of this section."], ["17:17:2.0.1.1.12.2.1.14", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.74 Delegation of authority to issue special calls for Series 03 Reports.", "CFTC", "", "", "[82 FR 28770, June 26, 2017]", "(a) The Commodity Futures Trading Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Enforcement, or such other employee or employees as the Director may designate from time to time, the authority to issue special calls for series 03 reports under \u00a7 18.00 of this chapter.\n\n(b) The Director of the Division of Enforcement may submit any matter which has been delegated to the Director under this section to the Commission for its consideration.\n\n(c) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Enforcement under paragraph (a) of this section."], ["17:17:2.0.1.1.12.2.1.15", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.75 Delegation of authority to the Director of the Division of Clearing and Risk and to the Director of the Market Participants Division.", "CFTC", "", "", "[48 FR 22136, May 17, 1983, as amended at 67 FR 62352, Oct. 7, 2002; 78 FR 22419, Apr. 16, 2013]", "Pursuant to sections 2(a)(11), 8a(5) and 8(g) of the Act, the Commission hereby delegates to the Director of the Division of Clearing and Risk and to the Director of the Market Participants Division and to such members of the Commission's staff acting under their direction as either Director may designate, the authority to disclose any registration information contained in the registration applications filed by Commission registrants or any compilation of such information maintained by the Commission to any department or agency of any State or any political subdivision thereof. Disclosure under this section may be made upon reasonable request made to the Commission or without request whenever the Director of the Division of Clearing and Risk, the Director of the Market Participants Division, or any Commission employee designated by either Director to make disclosures under this section determines that such information may be appropriate for use by any department or agency of a State or political subdivision thereof. Notwithstanding the provisions of this section, in any case in which the Director of Division of Clearing and Risk and Division of Swap Dealer and Intermediary Oversight deems it appropriate, or in any case in which the Commission so requests, the Director may submit matter to the Commission for its consideration."], ["17:17:2.0.1.1.12.2.1.16", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.76 Delegation of authority to disclose information in a receivership or bankruptcy proceeding.", "CFTC", "", "", "[49 FR 4464, Feb. 7, 1984, as amended at 67 FR 62352, Oct. 7, 2002; 78 FR 22419, Apr. 16, 2013; 89 FR 71813, Sept. 4, 2024]", "(a) Pursuant to sections 2(a)(11) and 8(b) of the Act, the Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Enforcement, the Director of the Division of Clearing and Risk, the Director of the Market Participants Division, the General Counsel, or any Commission employee under their direction as they may designate Commission employee under their direction as they may designate, the authority to disclose data and information that would separately disclose the business transactions or market positions of any person and trade secrets or names of customers, when such disclosure is made in any receivership proceeding involving a receiver appointed in a judicial proceeding brought under the Act, or in any bankruptcy proceeding in which the Commission has intervened or in which the Commission has the right to appear and be heard under title 11 of the United States Code.\n\n(b) Notwithstanding the provisions of paragraph (a), in any case in which the Director of the Division of Enforcement, the Director of the Division of Clearing and Risk, the Director of the Market Participants Division, the General Counsel, or any employee designated by them to make disclosures pursuant to this section believes it appropriate, the matter may be submitted to the Commission for consideration. In addition, the Commission reserves to itself the authority to determine whether to grant a request for information in any particular case."], ["17:17:2.0.1.1.12.2.1.17", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.77 Delegation of authority to determine that applications for contract market designation, swap execution facility registration, or swap data repository registration are materially incomplete.", "CFTC", "", "", "[48 FR 34946, Aug. 2, 1983, as amended at 57 FR 20638, May 14, 1992; 67 FR 62353, Oct. 7, 2002; 77 FR 66347, Nov. 2, 2012]", "(a) The Commodity Futures Trading Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Market Oversight or the Director's designees, the authority to determine that an application for contract market designation, swap execution facility registration, or swap data repository registration is materially incomplete under section 6 of the Commodity Exchange Act and to so notify the applicant.\n\n(b) The Director of the Division of Market Oversight may submit any matter which has been delegated to the director under paragraph (a) of this section to the Commission for its consideration.\n\n(c) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Market Oversight under paragraph (a) of this section."], ["17:17:2.0.1.1.12.2.1.18", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.80 Disclosure of information pursuant to a subpoena or summons.", "CFTC", "", "", "[49 FR 4464, Feb. 7, 1984]", "The Commission shall provide notice to any person who has submitted information to the Commission when a summons or subpoena seeking the submitted information is received by the Commission. Notice ordinarily will be provided by mailing a copy of the summons or subpoena to the last known home or business address of the person who submitted the information. However, under circumstances which would make notice by mail unduly burdensome or costly, notice of the existence of the summons or subpoena may be affected by alternative means such as publication in the  Federal Register.  The Commission will not disclose such information until the expiration of at least fourteen days from the date of mailing, or such other notice as is given. This section shall not apply to (a) Congressional subpoenas or Congressional requests for information, (b) information which is considered by the Commission to be public information, or (c) information as to which the submitter has waived the notice provision of this section."], ["17:17:2.0.1.1.12.2.1.19", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.81 [Reserved]", "CFTC", "", "", "", ""], ["17:17:2.0.1.1.12.2.1.2", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.11 Emergency action by the senior Commissioner available.", "CFTC", "", "", "[41 FR 28474, July 12, 1976, as amended at 89 FR 71813, Sept. 4, 2024]", "(a)  Authority of senior Commissioner.  When it is not feasible to convene a quorum of the Commission, the Senior Commissioner present at the Commission headquarters (or, during non-business hours, available in the Washington, DC area) may take emergency action on behalf of and in the name of the Commission in accordance with the procedures set forth in this section. Members of the Commission shall be considered senior in the following order: the Chairman and other Commissioners in order of their length of service on the Commission. Where two or more Commissioners have commenced their service on the same date, the Commissioner whose unexpired term in office is the longest will be considered senior.\n\n(b)  Exercise of authority.  Subject to the right of the Commission to review any emergency action taken as hereinafter provided, the Senior Commissioner may act on behalf of and in the name of the Commission with respect to all of the functions of the Commission except general rulemaking functions:  Provided, however,  That the Senior Commissioner shall not exercise any authority on behalf of the Commission (1) without consultation with such other member of the Commission as may at the time be present at the Commission's Washington, DC headquarters, and without a reasonable attempt to consult, by telephone, with other members of the Commission; and (2) unless, in the opinion of the Senior Commissioner (after consulting with the General Counsel or his deputy or associate, and such other members of the Commission staff as the Senior Commissioner deems appropriate) the public interest requires that action be taken prior to the next scheduled meeting of the Commission.\n\n(c)  Report to the Commission.  The exercise of Senior Commissioner authority shall be reported to the Commission within one business day thereafter either by the Senior Commissioner or at their direction, and shall be recorded by the Secretariat in the Minute Record of all official actions of the Commission. The Secretariat shall promptly notify any directly affected person of the action taken and that it was the Senior Commissioner available, rather than the Commission as a whole, who took the action.\n\n(d)  Review by the Commission.  The Commission may, in the following circumstances, review any action taken under Senior Commissioner authority and may affirm, modify, alter or set aside the decision:\n\n(1) Upon the request of any member of the Commission, any action taken by a Senior Commissioner shall be reviewed by the Commission.\n\n(2) In the event action by a Senior Commissioner suspends, denies or revokes or otherwise directly and adversely affects any license, right or privilege of any person, that person may in writing request review by the Commission and shall be entitled to have the action of the Senior Commissioner reviewed by the Commission.\n\n(3) The Commission may, in its discretion, review any action taken by a Senior Commissioner upon petition by any other person.\n\n(e)  Final effect of action by Senior Commissioner.  In any matter, the action taken under Senior Commissioner authority shall be deemed the action of the Commission unless and until the Commission shall otherwise direct."], ["17:17:2.0.1.1.12.2.1.20", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.91 Delegation of authority to the Director of the Division of Clearing and Risk and to the Market Participants Division.", "CFTC", "", "", "[44 FR 13460, Mar. 12, 1979, as amended at 60 FR 8195, Feb. 13, 1995; 66 FR 43087, Aug. 17, 2001; 66 FR 53523, Oct. 23, 2001; 67 FR 62353, Oct. 7, 2002; 78 FR 22419, Apr. 16, 2013; 78 FR 68655, Nov. 14, 2013; 79 FR 44126, July 30, 2014; 85 FR 57570, Sept. 15, 2020; 89 FR 71813, Sept. 4, 2024]", "(a) The Commission hereby delegates, until such time as the Commission orders otherwise, the following functions to the Director of the Division of Clearing and Risk and to the Director of the Market Participants Division and to such members of the Commission's staff acting under their direction as they may designate:\n\n(1) All functions reserved to the Commission in \u00a7 1.10 of this chapter, except for those relating to nonpublic treatment of reports set forth in \u00a7 1.10(g) of this chapter;\n\n(2) All functions reserved to the Commission in \u00a7 1.12 of this chapter;\n\n(3) All functions reserved to the Commission in \u00a7 1.14 of this chapter;\n\n(4) All functions reserved to the Commission in \u00a7 1.15 of this chapter;\n\n(5) All functions reserved to the Commission in \u00a7 1.16 of this chapter; and\n\n(6) All functions reserved to the Commission in \u00a7 1.17 of this chapter, except for those relating to non-enumerated cover cases set forth in \u00a7 1.17(j)(3) of this chapter.\n\n(7) All functions reserved to the Commission in \u00a7 1.20 of this chapter.\n\n(8) All functions reserved to the Commission in \u00a7 1.25 of this chapter.\n\n(9) All functions reserved to the Commission in \u00a7 1.26 of this chapter.\n\n(10) All functions reserved to the Commission in \u00a7 1.52 of this chapter.\n\n(11) All functions reserved to the Commission in \u00a7 23.100-106 of this chapter, except for those related to the revocation of a swap dealer's or major swap participant's approval to use internal models to compute capital requirements under \u00a7 23.102 of this chapter, those related to the Commission's order under \u00a7 23.104 of this chapter, and the issuance of Capital Comparability Determinations under \u00a7 23.106 of this chapter.\n\n(12) All functions reserved to the Commission in \u00a7 30.7 of this chapter.\n\n(13) All functions reserved to the Commission in \u00a7 41.41 of this chapter. Any action taken pursuant to the delegation of authority under this paragraph (a)(13) shall be made with the concurrence of the General Counsel or, in their absence, a Deputy General Counsel.\n\n(b) The Director of the Division of Clearing and Risk and the Director of the Market Participants Division may submit any matter which has been delegated to them under paragraph (a) of this section to the Commission for its consideration."], ["17:17:2.0.1.1.12.2.1.21", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.92 Delegation of authority to grant registrations and renewals thereof.", "CFTC", "", "", "[45 FR 20785, Mar. 31, 1980, as amended at 67 FR 62353, Oct. 7, 2002; 78 FR 22419, Apr. 16, 2013]", "(a) The Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Clearing and Risk and to the Director of the Market Participants Division and to such members of the Commission's staff acting under their direction as they may designate, the authority to grant registrations and renewals thereof.\n\n(b) The Director of the Division of Clearing and Risk and the Director of the Market Participants Division may submit any matter which has been delegated to them under paragraph (a) of this section to the Commission for its consideration.\n\n(c) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Clearing and Risk and to the Director of the Market Participants Division under paragraph (a) of this section."], ["17:17:2.0.1.1.12.2.1.22", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.93 Delegation of authority to the Director of the Market Participants Division.", "CFTC", "", "", "[46 FR 26023, May 8, 1981, as amended at 46 FR 34311, July 1, 1981; 50 FR 15884, Apr. 23, 1985; 52 FR 41986, Nov. 2, 1987; 67 FR 62353, Oct. 7, 2002; 70 FR 2566, Jan. 14, 2005; 78 FR 22419, Apr. 16, 2013; 81 FR 704, Jan. 6, 2016]", "(a) The Commission hereby delegates, until such time as the Commission orders otherwise, the following functions to the Director of the Division of Clearing and Risk and to the Director of the Market Participants Division and to such members of the Commission's staff acting under their direction as they may designate:\n\n(1) All functions reserved to the Commission in \u00a7 4.12(a) of this chapter.\n\n(2) All functions reserved to the Commission in \u00a7 4.22(g)(3) of this chapter.\n\n(3) All functions reserved to the Commission in \u00a7 4.20(a) of this chapter.\n\n(4) All functions reserved to the Commission in \u00a7 4.5(c)(2)(ii) of this chapter.\n\n(5) All functions reserved to the Commission in \u00a7 4.6(b) of this chapter.\n\n(6) All functions reserved to the Commission in \u00a7\u00a7 23.150 through 23.161 of this chapter.\n\n(b) The Director of the Division of Clearing and Risk and the Director of the Market Participants Division may submit any matter which has been delegated to them under paragraph (a) of this section to the Commission for its consideration.\n\n(c) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Clearing and Risk and the Director of the Market Participants Division under paragraph (a) of this section."], ["17:17:2.0.1.1.12.2.1.23", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.94 Delegation of authority to the Director of the Market Participants Division and to the Director of the Division of Clearing and Risk.", "CFTC", "", "", "[78 FR 22420, Apr. 16, 2013, as amended at 78 FR 72514, Dec. 2, 2013; 85 FR 4900, Jan. 27, 2020; 85 FR 67189, Oct. 21, 2020; 86 FR 968, Jan. 7, 2021; 88 FR 53698, Aug. 8, 2023]", "(a) The Commission hereby delegates, until such time as the Commission orders otherwise, the following functions to the Director of the Market Participants Division and to such members of the Commission's staff acting under their direction as they may designate:\n\n(1) All functions reserved to the Commission in \u00a7 5.7 of this chapter;\n\n(2) All function reserved to the Commission in \u00a7 5.10 of this chapter;\n\n(3) All functions reserved to the Commission in \u00a7 5.11 of this chapter;\n\n(4) All functions reserved to the Commission in \u00a7 5.12 of this chapter, except for those relating to nonpublic treatment of reports set forth in \u00a7 5.12(i) of this chapter; and\n\n(5) All functions reserved to the Commission in \u00a7 5.14 of this chapter.\n\n(b) The Director of the Market Participants Division \n\nmay submit any matter which has been delegated to him or her under paragraph (a) of this section to the Commission for its consideration.\n\n(c) The Commission hereby delegates, until such time as the Commission orders otherwise, the following functions to the Director of the Division of Clearing and Risk and to such members of the Commission's staff actingunder their direction as they may designate:\n\n(1) The authority to review applications for registration as a derivatives clearing organization filed with the Commission under \u00a7 39.3(a)(1) of this chapter, to determine that an application is materially complete pursuant to \u00a7 39.3(a)(2) of this chapter, to request additional information in support of an application pursuant to \u00a7 39.3(a)(4) of this chapter, to extend the review period for an application pursuant to \u00a7 39.3(a)(7) of this chapter, to stay the running of the 180-day review period if an application is incomplete pursuant to \u00a7 39.3(b)(1) of this chapter, to review requests for amendments to orders of registration filed with the Commission under \u00a7 39.3(d)(1) of this chapter, to request additional information in support of a request for an amendment to an order of registration pursuant to \u00a7 39.3(d)(2) of this chapter, and to request additional information in support of a rule submission pursuant to \u00a7 39.3(g)(3) of this chapter;\n\n(2) All functions reserved to the Commission in \u00a7 39.4(a) of this chapter;\n\n(3) All functions reserved to the Commission in \u00a7 39.5(b)(2), (b)(3)(ix), (c)(1), and (d)(3) of this chapter;\n\n(4) All functions reserved to the Commission in \u00a7 39.6 of this chapter, except for the authority to:\n\n(i) Grant an exemption under \u00a7 39.6(a) of this chapter;\n\n(ii) Prescribe conditions to an exemption under \u00a7 39.6(b) of this chapter;\n\n(iii) Modify or terminate an exemption under \u00a7 39.6(f)(4) of this chapter; and\n\n(iv) Terminate an exemption under \u00a7 39.6(g)(3) of this chapter.\n\n(5) All functions reserved to the Commission in \u00a7 39.10(c)(4)(iv) of this chapter;\n\n(6) All functions reserved to the Commission in \u00a7 39.11(b)(1)(v), (b)(2)(ii), (c)(1) and (3), and (f)(1), and (2) of this chapter;\n\n(7) All functions reserved to the Commission in \u00a7 39.12(a)(5)(iii) of this chapter;\n\n(8) All functions reserved to the Commission in \u00a7 39.13(g)(8)(ii), (h)(1)(i)(C), (h)(1)(ii), (h)(3)(i) and (ii), and (h)(5)(i)(C) of this chapter;\n\n(9) The authority to request additional information in support of a rule submission under \u00a7\u00a7 39.13(i)(2) and 39.15(b)(2)(iii) of this chapter;\n\n(10) All functions reserved to the Commission in \u00a7 39.19(a), (b)(1), (c)(2), (c)(3)(iv), and (c)(5) of this chapter;\n\n(11) All functions reserved to the Commission in \u00a7 39.20(a)(5) of this chapter;\n\n(12) All functions reserved to the Commission in \u00a7 39.21(c) of this chapter;\n\n(13) All functions reserved to the Commission in \u00a7 39.31 of this chapter; and\n\n(14) The authority to approve the requests described in \u00a7\u00a7 39.34(d) and 39.39(f) of this chapter.\n\n(15) All functions reserved to the Commission in \u00a7 39.51 of this chapter, except for the authority to:\n\n(i) Grant registration under \u00a7 39.51(a) of this chapter;\n\n(ii) Prescribe conditions to registration under \u00a7 39.51(b) of this chapter; and\n\n(iii) Modify registration under \u00a7 39.51(d)(4) of this chapter.\n\n(d) The Director of Clearing and Risk may submit any matter which has been delegated to them under paragraph (c) of this section to the Commission for its consideration.\n\n(e) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Market Participants Division under paragraph (a) or to the Director of the Division of Clearing and Risk under paragraph (c) of this section."], ["17:17:2.0.1.1.12.2.1.24", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.95 Delegation of authority with respect to withdrawals from registration.", "CFTC", "", "", "[46 FR 48918, Oct. 5, 1981, as amended at 67 FR 62353, Oct. 7, 2002; 78 FR 22419, Apr. 16, 2013]", "(a) The Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Clearing and Risk and to the Director of the Market Participants Division and to such members of the Commission's staff acting under their direction as they may designate, the authority to review, postpone, condition, deny, or otherwise act upon a request for withdrawal from registration.\n\n(b) The Director of the Division of Clearing and Risk and the Director of the Market Participants Division may submit any matter which has been delegated to them under paragraph (a) of this section to the Commission for its consideration.\n\n(c) Nothing in this section shall prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Clearing and Risk and to the Director of the Market Participants Division under paragraph (a) of this section."], ["17:17:2.0.1.1.12.2.1.25", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.96 Delegation of authority to publish in the Federal Register.", "CFTC", "", "", "[50 FR 47532, Nov. 19, 1985, as amended at 55 FR 35897, Sept. 4, 1990; 57 FR 20638, May 14, 1992; 67 FR 62353, Oct. 7, 2002; 7 FR 66347, Nov. 2, 2012; 78 FR 22419, Apr. 16, 2013]", "(a) The Commodity Futures Trading Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Market Oversight or the Director's designee, or the Director of the Division of Data or the Director's designee, with the concurrence of the General Counsel or the General Counsel's designee, the authority to publish in the  Federal Register  notice of the availability for comment of the proposed terms and conditions of applications for contract market designation, swap execution facility and swap data repository registration, and to determine to publish, and to publish, requests for public comment on proposed exchange, swap execution facility, or swap data repository rules, and rule amendments, when there exists novel or complex issues that require additional time to analyze, an inadequate explanation by the submitting registered entity, or a potential inconsistency with the Act, including regulations under the Act.\n\n(b) The Commodity Futures Trading Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Market Oversight or the Director's designee, and to the Director of the Director of the Market Participants Division or the Director's designee, and to the Director of the Division of Clearing and Risk or the Director's designee, with the concurrence of the General Counsel or the General Counsel's designee, the authority to determine to publish, and to publish, in the  Federal Register,  requests for public comment on proposed rule amendments by a derivatives clearing organization, designated contract market, swap data repository, swap execution facility, or registered futures association when publication of the proposed rule amendment is in the public interest and will assist the Commission in considering the views of interested persons.\n\n(c) The Director of the Division of Market Oversight or the Director of the Market Participants Division or the Director of the Division of Clearing and Risk or the Director of the Division of Data may submit any matter which has been delegated to such Director under paragraphs (a) or (b) of this section to the Commission for its consideration.\n\n(d) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Market Oversight or to the Director of the Market Participants Division or to the Director of the Division of Clearing and Risk or to the Director of the Division of Data under paragraphs (a) and (b) of this section."], ["17:17:2.0.1.1.12.2.1.26", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.97 [Reserved]", "CFTC", "", "", "", ""], ["17:17:2.0.1.1.12.2.1.27", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.98 Publication of no-action, interpretative and exemption letters and other written communications.", "CFTC", "", "", "[57 FR 61291, Dec. 24, 1992]", "(a) Except as provided in paragraphs (b) and (c) of this section, and except for applications for orders granting exemptions submitted pursuant to section 4(c) of the Commodity Exchange Act and any written responses thereto, each written response by the Commission or its staff to a letter or other written communication requesting:\n\n(1) Interpretative legal advice with respect to the Commodity Exchange Act or any rule, regulation or order issued or adopted by the Commission thereunder;\n\n(2) A statement that, on the basis of the facts stated in such letter or other communication, the staff would not recommend that the Commission take any enforcement action; or\n\n(3) An exemption, on the basis of the facts stated in such letter or other communication, from the provisions of the Commodity Exchange Act or any rules, or regulations or orders issued or adopted by the Commission thereunder; shall be made available, together with the letter or other written communication making the request, for inspection and copying by any person as soon as practicable after the response has been sent or given to the person requesting it.\n\n(b) Any person submitting a letter or other written communication making such a request may also submit therewith a request that the letter or other written communication, as well as any Commission or staff response thereto, be accorded confidential treatment for a specified period of time, not exceeding 120 days from the date of the response thereto, together with a statement setting forth the considerations upon which the request for such treatment is based. If the staff determines that the request is reasonable and appropriate it will be granted and the letter or other written communication as well as the response thereto will not be made available for public inspection or copying until the expiration of the specified period. If it appears to the staff that the request for confidential treatment should be denied, the staff shall so advise the person making the request and such person may withdraw the letter or other written communication within 30 days thereafter. In such case, no response will be sent or given and the letter or other written communication shall remain in the Commission's files but will not be made public pursuant to this section. If such letter or other written communication is not so withdrawn, it shall be deemed to be available for public inspection and copying together with any written response thereto.\n\n(c) Notwithstanding the provisions of paragraphs (a) and (b) of this section, no portion of a letter or other written communication received by the Commission or its staff of the type described in paragraph (a) of this section, or any written response thereto, shall be made available for inspection and copying or otherwise published which would separately disclose the business transactions or market positions of any person and trade secrets or names of customers, except in accordance with the provisions of section 8 of the Commodity Exchange Act."], ["17:17:2.0.1.1.12.2.1.28", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.99 Requests for exemptive, no-action and interpretative letters.", "CFTC", "", "", "[63 FR 68181, Dec. 10, 1998, as amended at 65 FR 47859, Aug. 4, 2000; 66 FR 44967, Aug. 27, 2001; 67 FR 62353, Oct. 7, 2002; 69 FR 41426, July 9, 2004; 77 FR 66347, Nov. 2, 2012; 78 FR 22419, Apr. 16, 2013; 80 FR 59578, Oct. 2, 2015; 89 FR 71813, Sept. 4, 2024]", "(a)  Definitions.  For the purpose of this section:\n\n(1)  Exemptive letter  means a written grant of relief issued by the staff of a Division of the Commission from the applicability of a specific provision of the Act or of a rule, regulation or order issued thereunder by the Commission. An exemptive letter may only be issued by staff of a Division when the Commission itself has exemptive authority and that authority has been delegated by the Commission to the Division in question. An exemptive letter binds the Commission and its staff with respect to the relief provided therein. Only the Beneficiary may rely upon the exemptive letter.\n\n(2)  No-action letter  means a written statement issued by the staff of a Division of the Commission or of the Office of the General Counsel that it will not recommend enforcement action to the Commission for failure to comply with a specific provision of the Act or of a Commission rule, regulation or order if a proposed transaction is completed or a proposed activity is conducted by the Beneficiary. A no-action letter represents the position only of the Division that issued it, or the Office of the General Counsel if issued thereby. A no-action letter binds only the issuing Division or the Office of the General Counsel, as applicable, and not the Commission or other Commission staff. Only the Beneficiary may rely upon the no-action letter.\n\n(3)  Interpretative letter  means written advice or guidance issued by the staff of a Division of the Commission or the Office of the General Counsel. An interpretative letter binds only the issuing Division or the Office of the General Counsel, as applicable, and does not bind the Commission or other Commission staff. An interpretative letter may be relied upon by persons in addition to the Beneficiary.\n\n(4)  Letter  means an exemptive, no-action or interpretative letter.\n\n(5)  Division  means the Market Participants Division, the Division of Clearing and Risk, the Division of Market Oversight, the Division of Data, or the Office of the General Counsel, or any successor divisions or organizational units, as the context requires.\n\n(b)  General requirements.  (1) Issuance of a Letter is entirely within the discretion of Commission staff.\n\n(2) Each request for a Letter must comply with the requirements of this section. Commission staff may reject or decline to respond to a request that does not comply with the requirements of this section.\n\n(3) The request must relate to a proposed transaction or a proposed activity. Absent extraordinary circumstances, Commission staff will not issue a Letter based upon transactions or activities that have been completed or activities that have been conducted prior to the date upon which the request is filed with the Commission.\n\n(4) The request must be made by or on behalf of the person whose activities or transactions are the subject of the request. Commission staff will not respond to a request for a Letter that is made by or on behalf of an unidentified person.\n\n(5)(i) The request must set forth as completely as possible all material facts and circumstances giving rise to the request.\n\n(ii) Commission staff will not respond to a request based on a hypothetical situation. However, a requester may set forth one or more alternative structures or fact situations for a proposed transaction or activity;  Provided,  That the request complies with this section with respect to each alternative structure or fact situation.\n\n(c)  Information requirements.  Each request for a Letter must comply with the following information requirements:\n\n(1)(i) A request made by the person on whose behalf the Letter is sought must contain:\n\n(A) The name, main business address, main telephone number and, if applicable, the National Futures Association registration identification number of such person; and\n\n(B) The name and, if applicable, the National Futures Association registration identification number of each other person for whose benefit the person is seeking the Letter.\n\n(ii) When made by a requester other than the person on whose behalf the Letter is sought, the request must contain:\n\n(A) The name, main business address and main business telephone number of the requester;\n\n(B) The name and, if applicable, the National Futures Association registration identification number of the person on whose behalf the Letter is sought; and\n\n(C) The name and, if applicable, the National Futures Association registration identification number of each other person for whose benefit the requester is seeking the Letter.\n\n(iii) The request must provide the name, address and telephone number of a contact person from whom Commission staff may obtain additional information if necessary.\n\n(2) The section number of the particular provision of the Act and/or Commission rules, regulations or orders to which the request relates must be set forth in the upper right-hand corner of the first page of the request.\n\n(3) The request must be accompanied by:\n\n(i) A certification by a person with knowledge of the facts that the material facts as represented in the request are true and complete. The following form of certification is sufficient for this purpose:\n\nI hereby certify that the material facts set forth in the attached letter dated ____ are true and complete to the best of my knowledge.\n \n (name and title)\n\nI hereby certify that the material facts set forth in the attached letter dated ____ are true and complete to the best of my knowledge.\n\nand\n\n(ii) An undertaking made by the person on whose behalf the Letter is sought or by that person's authorized representative that, if at any time prior to issuance of a Letter, any material representation made in the request ceases to be true and complete, the person who made the undertaking will ensure that Commission staff is informed promptly in writing of all materially changed facts and circumstances. If a material change in facts or circumstances occurs subsequent to issuance of a Letter, the person on whose behalf the Letter is sought (or that person's authorized representative at the time of the change) must promptly so inform Commission staff.\n\n(4) The request must identify the type of relief requested and Letter sought and must clearly state why a Letter is needed. The request must identify all relevant legal and factual issues and discuss the legal and public policy bases supporting issuance of the Letter.\n\n(5) The request must contain references to all relevant authorities, including applicable provisions of the Act, Commission rules, regulations and orders, judicial decisions, administrative decisions, relevant statutory interpretations and policy statements. Adverse authority must be cited and discussed.\n\n(6) The request must identify prior publicly available Letters issued by Commission staff in response to circumstances similar to those surrounding the request (including adverse Letters), and must identify any conditions imposed by prior Letters as prerequisites for the issuance of those Letters. Citation of a representative sample of prior Letters is sufficient where a comprehensive recitation of prior Letters on a given topic would be repetitious or would not assist the staff in considering the request.\n\n(7) Requests may ask that, if the requested exemptive relief, no-action position or interpretative guidance is denied, the staff consider granting alternative relief or adopting an alternative position.\n\n(d)  Filing requirements.  Each request for a Letter must comply with the following filing requirements:\n\n(1) The request must be in writing and signed.\n\n(2)(i)(A) A request for a letter relating to the provisions of the Act or the Commission's rules, regulations, or orders issued thereunder governing designated contract markets, registered swap execution facilities, registered swap data repositories, registered foreign boards of trade, the nature of particular transactions and whether they are exempt or excluded from being required to be traded on one of the foregoing entities, made available for trading determinations, position limits, hedging exemptions, the trading of block trades, or position aggregation treatment shall be filed with the Director, Division of Market Oversight, Commodity Futures Trading Commission, at the Commission's Washington, DC headquarters.\n\n(B) A request for a letter regarding the form and manner of data reporting, data standards for reporting, or the content of any trade report or form to be submitted to the Commission, under Parts 15-20, 43, 45, 46, or 49, shall be filed with the Director, Division of Data at the Commission's Washington, DC headquarters.\n\n(ii) A request for a Letter relating to the provisions of the Act or the Commission's rules, regulations or orders governing or related to derivatives clearing organizations and other central counterparties, the clearing process, the clearing requirement determination, Commission regulation 1.25 jointly with the Director of the Market Participants Division, risk assessment, financial surveillance, the end user exemption, and bankruptcy shall be filed with the Director of the Division of Clearing and Risk at the Commission's Washington, DC headquarters.\n\n(iii) A request for a Letter relating to all other provisions of the Act or Commission rules, including Commission regulation 1.25 jointly with the Director of the Division of Clearing and Risk, shall be filed with the Director of the Market Participants Division at the Commission's Washington, DC headquarters.\n\n(iv) The requests described in paragraphs (d)(2)(i) through (iii) of this section must be submitted electronically using the email address  dmoletters@cftc.gov  (for a request filed with the Division of Market Oversight),  dcrletters@cftc.gov  (for a request filed with the Division of Clearing and Risk), or  dodletters@cftc.gov  (for a request filed with the Division of Data), or  mpdletters@cftc.gov  (for a request filed with the Market Participants Division), as appropriate, and a properly signed paper copy of the request must be provided to the Division of Market Oversight, the Division of Data, the Division of Clearing and Risk, or the Market Participants Division, as appropriate, pursuant to paragraphs (d)(2)(i) through (iii) of this section, as applicable, within ten days for purposes of verification of the electronic submission.\n\n(e)  Form of staff response.  No response to any request governed by this section is effective unless it is in writing, signed by appropriate Commission staff, and transmitted in final form to the recipient. Failure by Commission staff to respond to a request for a Letter does not constitute approval of the request. Nothing in this section shall preclude Commission staff from responding to a request for a Letter by way of endorsement or any other abbreviated, written form of response.\n\n(f)  Withdrawal of requests.  (1) A request for a Letter may be withdrawn by filing with Commission staff a written request for withdrawal, signed by the person on whose behalf the Letter was sought or by that person's authorized representative, that states whether the person on whose behalf the Letter was sought will proceed with the proposed transaction or activity.\n\n(2) Where a request has been submitted by an authorized representative of the person on whose behalf a Letter is sought, the authorized representative may withdraw from representation at any time without explanation,  Provided,  That Commission staff is promptly so notified.\n\n(g)  Failure to pursue a request.  In the event that Commission staff requests additional information or analysis from a requester and the requester does not provide that information or analysis within thirty calendar days, Commission staff generally will issue a denial of the request;  Provided, however,  that Commission staff in its discretion may issue an extension of time to provide the information and or analysis.\n\n(h)  Confidential treatment.  Confidential treatment of a request for a Letter must be requested separately in accordance with \u00a7 140.98 or \u00a7 145.9 of this chapter, as applicable.\n\n(i)  Applicability to other sections.  The provisions of this section shall not affect the requirements of, or otherwise be applicable to:\n\n(1) Notice filings required to be made to claim relief from the Act or from a Commission rule, regulation, or order including, without limitations, \u00a7\u00a7 4.5, 4.7(a), 4.7(b), 4.12(b), 4.13(b) and 4.14(a)(8) of this chapter;\n\n(2) Requests for exemption pursuant to section 4(c) of the Act; or\n\n(3) Requests for exemption pursuant to \u00a7 41.33 of this chapter."], ["17:17:2.0.1.1.12.2.1.3", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.12 Disposition of business by seriatim Commission consideration.", "CFTC", "", "", "[43 FR 43452, Sept. 26, 1978]", "(a) Whenever the Chairman of the Commission is of the opinion that joint deliberation among the members of the Commission upon any matter is unnecessary in light of the nature of the matter, impracticable, or would impede the orderly disposition of agency business, but is of the view that such matter should be the subject of a vote of the Commission, such matter may be disposed of by circulation of any relevant materials concerning the matter. The relevant materials shall be circulated to each member of the Commission, unless a member is unavailable or has determined not to participate in the matter. A written record of the vote of each participating Commission member shall be reported to the Secretariat who shall retain it in the records of the Commission.\n\n(b) Whenever any member of the Commission so requests, any matter circulated for disposition pursuant to paragraph (a) of this section shall be withdrawn from circulation and scheduled instead for a Commission meeting."], ["17:17:2.0.1.1.12.2.1.4", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.13 Vacancy in position of Chairman.", "CFTC", "", "", "[43 FR 50167, Oct. 27, 1978, 89 FR 71813, Sept. 4, 2024]", "At any time that a vacancy exists in the position of Chairman of the Commission the remaining members of the Commission shall elect a member to serve as acting Chairman who shall exercise the executive and administrative functions of the Commission that would otherwise be exercised by a Chairman in accordance with section 2(a)(6) of the Commodity Exchange Act, as amended, until a new Chairman has been appointed by the President and confirmed by the Senate:  Provided, however,  That if the President shall appoint a new Chairman from among the existing members of the Commission, that Commissioner shall serve as acting Chairman for these purposes until such time as their appointment as Chairman has been confirmed or rejected by the Senate."], ["17:17:2.0.1.1.12.2.1.5", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.14 Delegation of authority to the Secretary of the Commission.", "CFTC", "", "", "[44 FR 33677, June 12, 1979]", "After the Commission has formally reached a decision or taken other action on a matter, has agreed upon the language of the document which embodies the Commission decision or other action, including, but not limited to, a rule, regulation or order, and has directed that the document be issued, the Secretary of the Commission (or a person designated in writing by the Secretary) shall sign the document on behalf of the Commission. Signature by the Secretary shall be a ministerial function and shall not be discretionary. The delegation to the Secretary of the authority to sign documents on the Commission's behalf shall not affect any other delegation which the Commission has made, or may make, which authorizes any other officer or employee of the Commission to take action and to sign documents on the Commission's behalf. In addition, the Commission reserves the authority to provide for signature on its behalf by the Chairman or any other member of the Commission in particular circumstances."], ["17:17:2.0.1.1.12.2.1.6", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.20 Designation of senior official to oversee Commission use of national security information.", "CFTC", "", "", "[44 FR 65736, Nov. 15, 1979, as amended at 61 FR 21955, May 13, 1996]", "(a) The Executive Director is hereby designated to oversee the Commission's program to ensure the safeguarding of national security information received by the Commission from other agencies, to chair a Commission committee composed of members of the staff selected by him with authority to act on all suggestions and complaints with respect to the Commission administration of its information security program, and, in conjunction with the Security Officer of the Commission, to ensure that practices for safeguarding national security information are systematically reviewed and that those practices which are duplicative or unnecessary are eliminated.\n\n(b) The Executive Director may submit any matter for which he has been designated under paragraph (a) of this section to the Commission for its consideration."], ["17:17:2.0.1.1.12.2.1.7", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.21 Definitions.", "CFTC", "", "", "[48 FR 15464, Apr. 11, 1983]", "(a)  Classified information.  Information or material that is:\n\n(1) Owned by, produced for or by, or under control of the United States Government, and\n\n(2) Determined pursuant to Executive Order 12356 or prior or succeeding orders to require protection against unauthorized disclosure, and\n\n(3) So designated.\n\n(b)  Compromise.  The disclosure of classified information to persons not authorized access thereto.\n\n(c)  Custodians.  An individual who has possession of or is otherwise charged with the responsibility for safeguarding or accounting for classified information.\n\n(d)  Classification levels.  Refers to Top Secret \u201c(TS)\u201d, Secret \u201c(S)\u201d, and Confidential \u201c(C)\u201d levels used to identify national security information. Markings \u201cFor Official Use Only,\u201d and \u201cLimited Official Use\u201d shall not be used to identify national security information."], ["17:17:2.0.1.1.12.2.1.8", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.22 Procedures.", "CFTC", "", "", "[48 FR 15464, Apr. 11, 1983]", "(a)  Original classification.  The Commodity Futures Trading Commission has no original classification authority.\n\n(b)  Derivative classification.  Personnel of the Commission shall respect the original classification markings assigned to information they receive from other agencies.\n\n(c)  Declassification and downgrading.  Since the Commission does no original classification of material, declassification and downgrading of sensitive material is not applicable.\n\n(d)  Dissemination.  All classified national security information which the Commission receives from any agency will be cared for and returned in accordance with the particular agency's policy guidelines and may not be disseminated to any other agency without the consent of the originating agency."], ["17:17:2.0.1.1.12.2.1.9", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "B", "Subpart B\u2014Functions", "", "\u00a7 140.23 General access requirements.", "CFTC", "", "", "[48 FR 15464, Apr. 11, 1983]", "(a)  Determination of trustworthiness.  No person shall be given access to classified information unless a favorable determination has been made as to the person's trustworthiness. The determination of eligibility, referred to as a security clearance, shall be based on such investigations as the Commission may require in accordance with the applicable Office of Personnel Management standards and criteria.\n\n(b)  Determination of need-to-know.  A person is not entitled to receive classified information solely by virtue of having been granted a security clearance. A person must also have a need for access to the particular classified information sought in connection with the performance of official government duties or contractual obligations. The determination of that need shall be made by officials having responsibility for the classified information."], ["17:17:2.0.1.1.12.3.1.1", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-1 Authority and purpose.", "CFTC", "", "", "[67 FR 5939, Feb. 8, 2002]", "This subpart sets forth specific standards of conduct required of Commission members, employees of the Commission, and special government employees as well as regulations concerning former Commissioners, employees, and special government employees of the Commodity Futures Trading Commission. These rules are separate from and in addition to the Office of Government Ethics' conduct rules, Standards of Ethical Conduct for Employees of the Executive Branch, 5 CFR part 2635. In addition, this subpart contains references to various statutes governing employee conduct in order to aid Commission members, employees of the Commission and others in their understanding of statutory restrictions and requirements. \n 1 \n   Absent compelling countervailing reasons, all Commission members and employees are subject to all the terms of this section.\n\n1  These references, however, do not purport to cover all restrictions and requirements, and paraphrased restatements of statutory provisions are not intended to be, and should not be construed as, verbatim quotations of the law. Statutory text should be consulted in any situation in which it might apply."], ["17:17:2.0.1.1.12.3.1.2", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-2 Prohibited transactions.", "CFTC", "", "", "[67 FR 5939, Feb. 8, 2002, as amended at 77 FR 66347, Nov. 2, 2012]", "(a)  Application.  This section applies to all transactions effected by or on behalf of a Commission member or employee of the Commission, including transactions for the account of other persons effected by the member or employee, directly or indirectly under a power of attorney or otherwise. A member or employee shall be deemed to have a sufficient interest in the transactions of his or her spouse, minor child, or other relative who is a resident of the immediate household of the member or employee so that such transactions must be reported and are subject to all the terms of this section.\n\n(b)  Prohibitions.  Except as otherwise provided in this subsection, no member or employee of the Commission shall:\n\n(1) Participate, directly or indirectly, in any transaction:\n\n(i) In swaps;\n\n(ii) In commodity futures;\n\n(iii) In retail forex transactions, as that term is defined in \u00a7 5.1(m) of this chapter;\n\n(iv) Involving any commodity that is of the character of or which is commonly known to the trade as an option, privilege, indemnity, bid, offer, put, call, advance guaranty, or decline guaranty; or\n\n(v) For the delivery of any commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract;\n\n(2) Effect any purchase or sale of a commodity option, futures contract, or swap involving a security or group of securities;\n\n(3) Sell a security which he or she does not own or consummate a sale by the delivery of a security borrowed by or for his or her account;\n\n(4) Participate, directly or indirectly, in any investment transaction in an actual commodity if:\n\n(i) Nonpublic information is used in the investment transaction;\n\n(ii) It is prohibited by rule or regulation of the Commission; or\n\n(iii) It is effected by means of any instrument regulated by the Commission and is not otherwise permitted by an exception under this section;\n\n(5) Purchase or sell any securities of a company which, to his or her knowledge, is involved in any:\n\n(i) Pending investigation by the Commission;\n\n(ii) Proceeding before the Commission or to which the Commission is a party;\n\n(iii) Other matter under consideration by the Commission that could have a direct and predictable effect upon the company; or\n\n(6) Recommend or suggest to another person any transaction in which the member or employee is not permitted to participate in any circumstance where the member or employee could reasonably expect to benefit or where the member or employee has or may have control or substantial influence over such person.\n\n(c)  Exception for farming, ranching, and natural resource operations.  The prohibitions in paragraphs (b)(1)(i), (ii), and (iv) of this section shall not apply to a transaction in connection with any farming, ranching, oil and gas, mineral rights, or other natural resource operation in which the member or employee has a financial interest, if he or she is not involved in the decision to engage in, and does not have prior knowledge of, the actual futures, commodity option, or swap transaction and has previously notified the General Counsel \n 2 \n   in writing of the nature of the operation, the extent of the member's or employee's interest, the types of transactions in which the operation may engage, and the identity of the person or persons who will make trading decisions for the operation; \n 3 \n   or\n\n2  As used in this subpart, \u201cGeneral Counsel\u201d refers to the General Counsel in his or her capacity as counselor for the Commission and designated agency ethics official for the Commission, and includes his or her designee and the alternate designated agency ethics official appointed by the agency head pursuant to 5 CFR 2638.202.\n\n3  Although not required, if they choose to do so, members or employees may use powers of attorney or other arrangements in order to meet the notice requirements of, and to assure that they have no control or knowledge of, futures, commodity option, or swap transactions permitted under paragraph (c) of this section. A member or employee considering such arrangements should consult with the Office of General Counsel in advance for approval. Should a member or employee gain knowledge of an actual futures, commodity option, or swap transaction entered into by an operation described in paragraph (c) of this section that has already taken place and the market position represented by that transaction remains open, he or she should promptly report that fact and all other details to the General Counsel and seek advice as to what action, including recusal from any particular matter that will have a direct and predictable effect on the financial interest in question, may be appropriate.\n\n(d)  Other exceptions.  The prohibitions in paragraphs (b)(1), (2) and (3) of this section shall not apply to:\n\n(1) A transaction entered into by any publicly-available pooled investment vehicle (such as a mutual fund or exchange-traded fund) other than one operated by a person who is a commodity pool operator with respect to such entity if the direct or indirect ownership interest of the member or employee neither exercises control nor has the ability to exercise control over the transactions entered into by such vehicle; \n 4\n\n4  Section 9(c) of the Commodity Exchange Act makes it a felony for any member or employee, or agent thereof, to participate, directly or indirectly in,  inter alia,  any transaction in commodity futures, option, leverage transaction, or other arrangement that the Commission determines serves the same function, unless authorized to do so by Commission rule or regulation. 17 CFR 4.5 excludes certain otherwise regulated persons from the definition of \u201ccommodity pool operator\u201d with respect to operation of specific investment entities enumerated in the regulation.\n\n(2) The acceptance or exercise of any stock option or similar right granted by an employer as part of a compensation package to a spouse or minor child or other related member of the immediate household of a member or employee, or to the exercise of any stock option or similar right granted to the member or employee by a previous employer prior to commencement of the member's or employee's tenure with the Commission as part of such member's or employee's compensation package from such previous employer;\n\n(3) A transaction by any trust or estate of which the member or employee or the spouse, minor child, or other related member of the immediate household of the member or employee is solely a beneficiary, has no power to control, and does not in fact control or advise with respect to the investments of the trust or estate;\n\n(4) The exercise of any privilege to convert or exchange securities, of rights accruing unconditionally by virtue of ownership of other securities (as distinguished from a contingent right to acquire securities not subscribed for by others), or of rights in order to round out fractional shares in securities;\n\n(5) The acceptance of stock dividends on securities already owned, the reinvestment of cash dividends on a security already owned, or the participation in a periodic investment plan when the original purchase was otherwise consistent with this rule; or\n\n(6) Investment in any fund established pursuant to the Federal Employees Retirement System.\n\n(e)  No prohibition on stocks or funds.  Nothing in paragraph (b)(1) or (2) of this section shall prohibit a member or employee from purchasing, selling, or retaining any share that represents ownership of a publicly-owned corporation or interest in a publicly-available pooled investment vehicle containing any such shares (such as a mutual fund or exchange-traded fund) other than one operated by a person who is a commodity pool operator with respect to such pooled investment vehicle, regardless of whether any security futures product may at any time be or have been based upon shares of such corporation or pooled investment vehicle, and regardless of whether such pooled investment vehicle may, by design or effect, track or follow any group of securities that also underlies a futures contract.\n\n(f)  Exception applicable to legally separated employees.  This section shall not apply to transactions of a legally separated spouse of a member or employee, including transactions for the benefit of a minor child, if the member or employee has no power to control, and does not, in fact, advise or control with respect to such transactions. If the member or employee has actual or constructive knowledge of such transactions of a legally separated spouse or for the benefit of a minor child, the disqualification provisions of \u00a7 140.735-2a(d)(2)(i)-(iii) and 18 U.S.C. 208 are applicable."], ["17:17:2.0.1.1.12.3.1.3", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-2a Prohibited interests.", "CFTC", "", "", "[67 FR 5940, Feb. 8, 2002, as amended at 67 FR 62353, Oct. 7, 2002; 77 FR 66348, Nov. 2, 2012]", "(a)  Application.  This section applies to all financial interests of a Commission member or employee of the Commission, including financial interests held by the member or employee for the account of other persons. A member or employee shall be deemed to have a sufficient interest in the financial interests of his or her spouse, minor child, or other relative who is a resident of the immediate household of the member or employee, so that such financial interests must be reported and are subject to all the terms of this section.\n\n(b)  Prohibitions.  Except as otherwise provided in this subsection, no member or employee of the Commission shall:\n\n(1) Have a financial interest, through ownership of securities or otherwise, in any person \n 5 \n   registered with the Commission (including futures commission merchants, associated persons and agents of futures commission merchants, floor brokers, commodity trading advisors and commodity pool operators, and any other persons required to be registered in a fashion similar to any of the above under the Commodity Exchange Act or pursuant to any rule or regulation promulgated by the Commission), or any contract market, swap execution facility, swap data repository, board of trade, or other trading facility, or any derivatives clearing organization subject to regulation or oversight by the Commission; \n 6\n\n5  As defined in section 1a(38) of the Commodity Exchange Act and 17 CFR 1.3(u) thereunder, a \u201cperson\u201d includes an individual, association, partnership, corporation and a trust.\n\n6  Attention is directed to 18 U.S.C. 208.\n\n7  [Reserved]\n\n(c)  Exceptions.  The prohibitions in paragraph (b) of this section shall not apply to:\n\n(1) A financial interest in any publicly-available pooled investment vehicle (such as a mutual fund or exchange-traded fund) other than one operated by a person who is a commodity pool operator with respect to such entity if such vehicle does not have invested, or indicate in its prospectus the intent to invest, ten percent or more of its assets in securities of persons described in paragraph (b) of this section and the member or employee neither exercises control nor has the ability to exercise control over the financial interests held in such vehicle;\n\n(2) A financial interest in any corporate parent or affiliate of a person described in paragraph (b)(1) of this section if the operations of such person provide less than ten percent of the gross revenues of the corporate parent or affiliate; \n 8\n\n8  It is the member's or employee's responsibility to monitor his or her financial interests and those of a spouse or minor child or other related member of his or her immediate household, to promptly report relevant changes to the General Counsel in writing, and to seek the advice of the General Counsel as to what action may be appropriate. In this regard, attention is directed to 18 U.S.C. 208, which bars an employee from participating in any particular matter that will have a direct and predictable effect on the financial interest in question.\n\n(3) A financial interest in any trust or estate of which the member or employee is solely a beneficiary, has no power to control, and does not in fact control or advise with respect to the investments of the trust or estate; except that such interest is subject to the provisions of paragraphs (d) and (f) of this section.\n\n(d)  Retention or passive acquisition of prohibited financial interests.  Nothing in this section shall prohibit a member or employee, or a spouse or minor child or other related member of the immediate household of the member or employee, from:\n\n(1) Retaining a financial interest that was permitted to be retained by the member or employee prior to the adoption of this regulation, was obtained prior to the commencement of employment with the Commission, or was acquired by a spouse prior to marriage to the member or employee; or\n\n(2) Acquiring, retaining, or controlling an otherwise prohibited financial interest, including but not limited to any security or option on a security (but not a security futures product), where the financial interest was acquired by inheritance, gift, stock split, involuntary stock dividend, merger, acquisition, or other change in corporate ownership, exercise of preemptive right, or otherwise without specific intent to acquire the financial interest, or by a spouse or minor child or other related member of the immediate household of the member or employee as part of an employment compensation package;  provided, however,  that retention of any interest allowed by paragraph (c)(3) or (d) of this section is permitted only where the employee:\n\n(i) Makes full disclosure of any such interest on his or her annual financial disclosure (Standard Form 278 or Standard Form 450);\n\n(ii) Makes full written disclosure to the General Counsel within 30 days of commencing employment or, for incumbents, within twenty days of his or her receipt of actual or constructive notice that the interest has been acquired; \n 9 \n   and\n\n9  Changes in holdings, other than by purchase, which do not affect disqualification, such as those resulting from the automatic reinvestment of dividends, stock splits, stock dividends or reclassifications, may be reported on the annual statement, SF 278 or SF 450, rather than when notification of the transaction is received. Acquisition by, for example, gifts, inheritance, or spinoffs, which may result in additional disqualifications pursuant to paragraph (d)(2)(iii) of this section and 18 U.S.C. 208 shall be reported to the General Counsel within 20 days of the receipt of actual or constructive notice thereof.\n\n(iii) Will be disqualified in accordance with 5 CFR part 2635, subpart D, and 18 U.S.C. 208 from participating in any particular matter that will have a direct and predictable effect on the financial interest in question. Any Commission member or employee affected by this section may, pursuant to 18 U.S.C. 208(b)(1) and 5 CFR 2640.301-303, request a waiver of the disqualification requirement.\n\nWith respect to any financial interest retained under paragraph (c)(3) or (d) of this section, Commission members and employees are reminded of their obligations under 18 U.S.C. 208 and 5 CFR part 2635, subpart D, to disqualify themselves from participating in any particular matter in which they, their spouses or minor children have a financial interest.\n\n(e)  Exception applicable to legally separated employees.  This section shall not apply to the financial interests of a legally separated spouse of a Commission member or employee, including transactions for the benefit of a minor child, if the member or employee has no power to control and does not, in fact, advise or control with respect to such transactions. If the member or employee has actual or constructive knowledge of such financial interests held by a legally separated spouse or for the benefit of a minor child, the disqualification provisions of paragraphs (d)(2)(i)-(iii) of this section and 18 U.S.C. 208 are applicable.\n\n(f)  Divestiture.  Based upon a determination of substantial conflict under 5 CFR 2635.403(b) and 18 U.S.C. 208, the Commission, or its designee, may require in writing that a member or employee, or the spouse or minor child or other related member of the immediate household of a member or employee, divest a financial interest that he or she is otherwise authorized to retain under this section. \n 10\n\n10  Any evidence of a violation of 18 U.S.C. 208 must be reported by the General Counsel to the Commission, which may refer the matter to the Criminal Division of the Department of Justice and the United States Attorney in whose venue the violations lie.  See  28 U.S.C. 535."], ["17:17:2.0.1.1.12.3.1.4", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-3 Non-governmental employment and other outside activity.", "CFTC", "", "", "[ 77 FR 66348, Nov. 2, 2012]", "A Commission member or employee shall not accept employment or compensation from any person, exchange, swap execution facility, swap data repository or derivatives clearing organization subject to regulation by the Commission. For purposes of this section, a person subject to regulation by the Commission includes but is not limited to a contract market, swap execution facility, swap data repository or derivatives clearing organization or member thereof, a registered futures commission merchant, any person associated with a futures commission merchant or with any agent of a futures commission merchant, floor broker, commodity trading advisor, commodity pool operator or any person required to be registered in a fashion similar to any of the above or file reports under the Act or pursuant to any rule or regulation promulgated by the Commission.\n 11\n\n11  Attention is directed to section 2(a)(8) of the Commodity Exchange Act, which provides, among other things, that no Commission member or employee shall accept employment or compensation from any person, exchange or derivatives clearing organization (\u201cclearinghouse\u201d) subject to regulation by the Commission, or participate, directly or indirectly, in any contract market operations or transactions of a character subject to regulation by the Commission."], ["17:17:2.0.1.1.12.3.1.5", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-4 Receipt and disposition of foreign gifts and decorations.", "CFTC", "", "", "[47 FR 24115, June 3, 1982. Redesignated at 58 FR 52658, Oct. 12, 1993; 63 FR 32733, June 16, 1998]", "(a) For purposes of this section only:\n\n(1)  Commission member  or  employee  means any Commission member or any person employed by or who occupies an office or a position in the Commission; an expert or consultant under contract with the Commission, or in the case of an organization performing services under such contract, any individual involved in the performance of such service; and the spouse, unless the individual and his or her spouse are separated, and any dependent, as defined by section 152 of the Internal Revenue Code of 1954, of any such person.\n\n(2)  Foreign government  means:\n\n(A) Any unit of foreign governmental authority, including any foreign national, state, local, and municipal government;\n\n(B) Any international or multinational organization whose membership is composed of any unit of foreign government described in paragraph (a)(2)(A) of this section; and\n\n(C) Any agent or representative of any such unit or such organization, while acting as such.\n\n(3)  Gift  means a tangible or intangible present (other than a decoration) tendered by, or received from, a foreign government, except grants and other forms of assistance to which section 108A of the Mutual Educational and Cultural Exchange Act of 1961 applies.\n\n(4)  Decoration  means an order, device, medal, badge, insignia, emblem, or award tendered by, or received from, a foreign government.\n\n(5)  Minimal value  means a retail value in the United States at the time of acceptance of $140 or less, except as redefined to reflect changes in the consumer price index at three year intervals by the Administrator of General Services pursuant to authority granted in 5 U.S.C. 7342(a)(5)(A).\n\n(b) Commission members and employees shall not:\n\n(1) Request or otherwise encourage the tender of a gift or decoration;\n\n(2) Accept a gift of currency, except that which has an historical or numismatic value;\n\n(3) Accept gifts of travel or gifts of expenses for travel, such as transportation, food and lodging, from foreign governments, other than those authorized in paragraph (c)(5) of this section; or\n\n(4) Accept any gift or decoration, except as authorized by this section.\n\n(c) Gifts which may be accepted:\n\n(1) Commission members and employees may accept and retain gifts of minimal value tendered or received as a souvenir or mark of courtesy from a foreign government without further approval. If the value of a gift is uncertain, the recipient shall be responsible for establishing that it is of minimal value, as defined in this section. Documentary evidence may be required in support of the valuation.\n\n(2) Commission members and employees may accept, on behalf of the United States, gifts of more than minimal value tendered or received from a foreign government when it appears that to refuse the gift would likely cause offense or embarrassment or otherwise adversely affect the foreign relations of the United States. When a tangible gift of more than minimal value is accepted on behalf of the United States, it becomes the property of the United States.\n\n(3) Commission members and employees may accept a gift of more than minimal value where such gift is in the nature of an educational scholarship or medical treatment.\n\n(4) Within 60 days after accepting a tangible gift of more than minimal value, other than a gift described in paragraph (c)(5) of this section, a Commission member or employee shall file a statement with the Executive Director of the Commission which shall include the following information:\n\n(A) The name and position of the Commission member or employee;\n\n(B) A brief description of the gift and the circumstances justify acceptance;\n\n(C) The identity, if known, of the foreign government and the name and position of the individual who presented the gift;\n\n(D) The date of acceptance of the gift;\n\n(E) The estimated value in the United States of the gift at the time of acceptance; and\n\n(F) The disposition or current location of the gift.\n\n(5) Commission members and employees are authorized to accept from a foreign government gifts of travel or gifts of expenses for travel taking place entirely outside the United States, such as transportation, food and lodging, of more than minimal value if the acceptance is approved by the Executive Director, upon a finding that it is consistent with the interests of the Commission. Either prior to or within 30 days after accepting each gift of travel or gift of travel expenses pursuant to this paragraph, the Commission member or employee concerned shall file a statement with the Executive Director containing the following information:\n\n(A) The name and position of the Commission member or employee;\n\n(B) A brief description of the gift and the circumstances justifying acceptance;\n\n(C) The identity, if known, of the foreign government and the name and position of the individual who presented the gift; and\n\n(D) The date of acceptance.\n\n(6) Not later than January 31 of each year the Executive Director shall compile a listing of all statements filed during the preceding year by Commission members and employees pursuant to paragraphs (c)(4) and (c)(5) of this section and shall transmit the listing to the Secretary of State.\n\n(d) Commission members or employees may accept, retain and wear decorations tendered by a foreign government in recognition of active field service in time of combat operations or awarded for other outstanding or unusually meritorious performance, subject to the approval of the Executive Director. Without this approval, the decoration is deemed to have been accepted on behalf of the United States, shall become the property of the United States, and shall be deposited by the employee, within 60 days of acceptance, with the Executive Director for official use or forwarding to the Administrator of General Services for disposal in accordance with paragraph (g) of this section. Under normal circumstances, it can be expected that a Commission member or employee will be notified of the intent of a foreign government to award him or her or a spouse or dependent a decoration for outstanding or unusually meritorious service sufficiently in advance so that the approval required can be sought prior to its acceptance. A request for the approval of the Executive Director shall be submitted in writing, stating the nature of the decoration and the reason why it is being awarded. Whenever possible, the request should also be accompanied by a statement from the foreign government, preferably in the form of the citation, which shows the basis for the tender of the award, whether it is in recognition of active field service in time of combat operations or for other outstanding or unusually meritorious performance.\n\n(e) Within 60 days after acceptance of a tangible gift of more than minimal value or a decoration for which the Executive Director has not given approval, a Commission member or employee shall:\n\n(1) Deposit the gift or decoration for disposal with the Executive Director; or\n\n(2) Subject to the approval of the Commission, upon the recommendation of the Executive Director, deposit the gift or decoration with the Commission for official use.\n\nA gift or decoration may be retained for official use if the Commission determines that it can be properly displayed in an area accessible to employees and members of the public. Within 30 days after termination of the official use of a gift, the Executive Director shall forward the gift to the Administrator of General Services in accordance with paragraph (g) of this section.\n\n(f) Whenever possible, gifts and decorations that have been deposited with the Executive Director for disposal shall be returned to the donor. The Executive Director, in coordination with the Office of the General Counsel, shall examine the circumstances surrounding the donation, assessing whether any adverse effect on the foreign relations of the United States might result from the return of the gift or decoration to the donor. The appropriate Department of State officials shall be consulted if a question of adverse effect on United States foreign relations arises.\n\n(g) Gifts and decorations that have not been returned to the donor, retained for official use, or for which official use has terminated, shall be forwarded by the Executive Director to the Administrator of General Services for transfer, donation, or other disposal in accordance with the provisions of the Federal Property and Administrative Services Act of 1949, as amended, and 5 U.S.C. 7342.\n\n(h) In accordance with 5 U.S.C. 7342(h), the U.S. Attorney General may bring a civil action in any United States district court against any Commission member or employee who knowingly solicits or accepts a gift from a foreign government not consented to by the Congress of the United States in 5 U.S.C. 7342, or who fails to deposit or report such gift as required by 5 U.S.C. 7342. The court may assess a penalty against such Commission member or employee in any amount not exceeding the retail value of the gift improperly solicited or received plus $5,000.\n\n(i) A violation of the requirements set forth in this section by a Commission employee may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law.\n\n(j)(1) The burden of proving minimal value shall be on the recipient. In the event of a dispute over the value of a gift, the Executive Director shall arrange for an outside appraiser to determine whether the gift is of more or less than minimal value.\n\n(2) When requested by the Administrator of Government Services, the Executive Director shall arrange for an appraisal of a gift or decoration.\n\n(k) No appropriated funds of the Commission may be used to buy any tangible gift of more than minimal value for any foreign individual, unless the gift has been approved by Congress."], ["17:17:2.0.1.1.12.3.1.6", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-5 Disclosure of information.", "CFTC", "", "", "[58 FR 52658, Oct. 12, 1993]", "A Commission employee or former employee shall not divulge, or cause or allow to be divulged, confidential or non-public commercial, economic or official information to any unauthorized person, or release such information in advance of authorization for its release. \n 9 \n   Except as directed by the Commission or its General Counsel as provided in these regulations, no Commission employee or former employee is authorized to accept service of any subpoena for documentary information contained in or relating to the files of the Commission. Any employee or former employee who is served with a subpoena requiring testimony regarding non-public information or documents shall, unless the Commission authorizes the disclosure of such information, respectfully decline to disclose the information or produce the documents called for, basing his refusal on these regulations. \n 10 \n   Any employee or former employee who is served with a subpoena calling for information regarding the Commission's business shall promptly advise the General Counsel of the service of such subpoena, the nature of the information or documents sought, and any circumstances which may bear upon the desirability of making such information or document available in the public interest. \n 11 \n   In any proceeding in which the Commission is not a party, no employee of the Commission shall testify concerning matters related to the business of the Commission unless authorized to do so by the Commission.\n\n9  Attention is directed to section 9(d) of the Commodity Exchange Act, which provides that it shall be a felony punishable by a fine of not more than $500,000 or imprisonment for not more than five years, or both, together with the costs of prosecution\u2014(1) for any Commissioner of the Commission or any employee or agent thereof who, by virtue of his employment or position, acquires information which may affect or tend to affect the price of any commodity future or commodity and which information has not been promptly made public, to impart such information with intent to assist another person, directly or indirectly, to participate in any transaction in commodity futures, any transaction in an actual commodity, or in any transaction of the character of or which is commonly known to the trade as an option, privilege, indemnity, bid, offer, put, call, advance guaranty or decline guaranty, or in any transaction for the delivery of any commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account or leverage contract, or under any contract or other arrangement that the Commission determines to serve the same function or is marketed in the same manner as such standardized contract, and (2) for any person to acquire such information from any Commissioner of the Commission or any employee or agent thereof and to use such information in any of the foregoing transactions.\n\n10  No employee shall disclose such information unless directed to do so by the Commission.\n\n11  The prohibitions regarding confidential or nonpublic information stated above are intended to cover the matters addressed in sections 4(c), 8, and 9(d) of the Commodity Exchange Act as well as nonpublic information under the Freedom of Information Act, 5 U.S.C. 552, the rules of the Commission thereunder, 17 CFR part 145, the Privacy Act, 5 U.S.C. 552a, the rules of the Commission thereunder, 17 CFR part 146, and cases where, apart from specific prohibitions in any statute or rule, the disclosure or use of such information would be unethical."], ["17:17:2.0.1.1.12.3.1.7", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-6 Practice by former members and employees of the Commission.", "CFTC", "", "", "[58 FR 52658, Oct. 12, 1993; 58 FR 58593, Nov. 2, 1993]", "(a)  Personal and substantial participation or nonpublic knowledge of a particular matter.  No person who has been a member or employee of the Commission shall ever knowingly make, with the intent to influence, any communication to or appearance before the Commission in connection with any particular matter involving a specific party or parties \n 12 \n   in which such person, or one participating with him or her in the particular matter, participated personally and substantially, or gained nonpublic knowledge of facts thereof, while with the Commission. \n 13\n\n12  The phrase \u201cparticular matter involving a specific party or parties\u201d does not apply to general rulemaking, general policy and standards formulation or other similar matters.  See  \u00a7 2637.201(c)(1) of the regulations of the Office of Government Ethics, 5 CFR 2637.201(c)(1);  cf. , memorandum of the Attorney General dealing with the conflict-of-interest provisions prior to amendment by the Ethics in Government Act (reproduced following 18 U.S.C. 201).\n\n13  Attention is directed to 18 U.S.C. 207(a)(1), as amended, which generally prohibits former Federal officers and employees permanently from knowingly making, with the intent to influence, any communication to or appearance before any Federal (or District of Columbia) department, agency or court, or court martial, or any officer or employee thereof, in connection with any particular matter involving a specific party or parties in which the United States (or the District of Columbia) is a party or has a direct and substantial interest and in which the former officer or employee participated personally and substantially while with the government.\n\n(b)  Particular matter under an individual's official responsibility.  No person who has been a member or employee of the Commission shall, within two years after that employment has ceased, knowingly make, with the intent to influence, any communication to or appearance before the Commission in connection with a particular matter involving a specific party or parties which was actually pending under his official responsibility as a member or employee of the Commission at any time within one year prior to the termination of government service. \n 14\n\n14  Attention is directed to 18 U.S.C. 207(a)(2), as amended. Section 207(a)(2) generally prohibits former Federal officers and employees, within two years after their Federal employment has ceased, from knowingly making, with the intent to influence, any communication to or appearance before any Federal (or District of Columbia) department, agency or court, or court martial, or any officer or employee thereof, in connection with any particular matter involving a specific party or parties in which the United States (or the District of Columbia) is a party or has a direct and substantial interest and which was actually pending under the official responsibility of the former officer or employee within one year prior to the termination of government service.\n\nAs used in paragraph (b) of this section, the term \u201cofficial responsibility\u201d has the meaning assigned to it in 18 U.S.C. 202(b), namely, the \u201cdirect administrative or operating authority, whether intermediate or final, and either exercisable alone or with others, and either personally or through subordinates, to approve, disapprove, or otherwise direct Government action.\u201d\n\n(c)  Restrictions on former members and senior employees.  A former member or employee of the Commission who occupied a \u201csenior\u201d position specified in 18 U.S.C. 207(c)(2), as amended, shall not within one year after such \u201csenior\u201d employment has ceased, knowingly make, with the intent to influence, any communication to or appearance before the Commission on behalf of any other person in connection with any matter in which such person seeks official action by the Commission. \n 15\n\n15  Attention is directed to 18 U.S.C. 207(c), as amended, which places restrictions on the representational activities of certain senior officers and employees after their departure from a senior position. Section 207(c) generally makes it unlawful for one year after service in a \u201csenior\u201d position terminates for a former \u201csenior\u201d Federal employee to knowingly make, with the intent to influence, any communication to or appearance before an employee of a department or agency in which he served in any capacity during the one year period prior to termination from \u201csenior\u201d service, if that communication or appearance is on behalf of any other person (except the United States), in connection with any matter concerning which he seeks official action by that employee.\n\nNote that the one year period is measured from the date when the employee ceases to be a senior employee, not from the termination of Government service, unless the two occur simultaneously. This provision prohibits communications to or appearances before the Government and does not prohibit \u201cbehind-the-scenes\u201d assistance. The restriction does not require that the former employee have ever been in any way involved in the matter that is the subject of the communication or appearance. The restriction applies with respect to any matter, whether or not involving a specific party.\n\n(d)  Exceptions.  The prohibitions contained in paragraphs (a), (b), and (c) of this section do not apply to communications solely for the purpose of furnishing scientific or technological information if approved by the Commission or generally to giving testimony under oath or making a statement which is subject to penalty or perjury. Further, the prohibition contained in paragraph (c) of this section does not apply to an uncompensated statement in a particular area within the special knowledge of the former Commission member or employee. \n 16\n\n16  Attention is directed to 18 U.S.C. 207(j), as amended (listing other exceptions). Self-representation is not prohibited under section 207.\n\n(e)  Reporting requirement.  Any former member or employee of the Commission who, within two years after ceasing to be such, is employed or retained as the representative of any person (except the United States) in connection with a matter in which it is contemplated that he will appear before or communicate with the Commission shall, within ten days of such retainer or employment, or of the time when appearance before or communication with the Commission is first contemplated, file with the General Counsel of the Commission a statement as to the nature thereof together with any desired explanation as to why it is deemed consistent with this section. Employment of a recurrent character may be covered by a single comprehensive statement. Each such statement should include an appropriate caption indicating that it is filed pursuant to this section. The reporting requirement of this paragraph does not apply to communications incidental to court appearances in litigation involving the Commission.\n\n(f)  Definitions.  As used in this section, the phrase \u201cappearance before the Commission\u201d means any formal or informal appearance on behalf of any person (except the United States) before the Commission, or any member or employee thereof with an intent to influence. As used in this section, the phrase \u201ccommunication with the Commission\u201d means any oral or written communication made to the Commission, or any member or employee thereof, on behalf of any person (except the United States) with an intent to influence.\n\n(g)  Advisory ruling.  Persons in doubt as to the applicability of this section may apply for an advisory ruling by addressing a letter requesting such a ruling to the General Counsel.\n\n(h)  Procedures for administrative enforcement of statutory restrictions on post-government employment conflicts of interest  \n 17 \n  \u2014(1)  Scope.  The provisions of this paragraph prescribe procedures for administrative enforcement of the restrictions which 18 U.S.C. 207 (a), (b), and (c), as amended, place on appearances before or communications with Federal (and District of Columbia) departments, agencies and courts, and other enumerated entities, as well as the officers and employees thereof, by former Commission members and employees.\n\n17  This section does not apply to employees who leave service after December 31, 1990.\n\n(2)  Investigations.  The General Counsel of the Commission, or his or her designee, shall conduct such investigations as he or she deems appropriate to determine whether any former Commission member or employee have violated 18 U.S.C. 207 (a), (b) or (c), as amended. The General Counsel shall report the results of his or her investigations to the Commission and shall recommend to the Commission such action as he or she deems appropriate.\n\n(3)  Hearings.  Hearings required to be held under the provisions of this section shall be held before an Administrative Law Judge, utilizing the procedures prescribed by the Commission's rules of practice for adjudicatory proceedings (17 CFR part 10), except to the extent that those rules are inconsistent with the provisions of this section. Any proceeding brought under the provisions of this section shall be prosecuted by the General Counsel or his or her designee.\n\n(4)  Sanctions.  If the Commission finds, after notice and opportunity for a hearing, that a former Commission member or employee has violated 18 U.S.C. 207 (a), (b) or (c), as amended, the Commission may prohibit that person from making, on behalf of any other person (except the United States), any formal or informal appearance before, or with the intent to influence any oral or written communication to, the Commission on a pending matter of business for a period not to exceed five years, or may take other appropriate disciplinary action."], ["17:17:2.0.1.1.12.3.1.8", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-7 Statutory violations applicable to conduct of Commission members and employees.", "CFTC", "", "", "[58 FR 52660, Oct. 12, 1993]", "A violation of section 2(a)(7), 8 or 9 (c) or (d) of the Commodity Exchange Act, as amended, shall be deemed to be a violation of this subpart as well."], ["17:17:2.0.1.1.12.3.1.9", 17, "Commodity and Securities Exchanges", "I", "", "140", "PART 140\u2014ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION", "C", "Subpart C\u2014Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission", "", "\u00a7 140.735-8 Interpretative and advisory service.", "CFTC", "", "", "[58 FR 52660, Oct. 12, 1993, as amended at 61 FR 21955, May 13, 1996; 62 FR 13302, Mar. 20, 1997; 67 FR 5941, Feb. 8, 2002]", "(a)  Counselor for the Commission.  The General Counsel, or his or her designee, will serve as Counselor for the Commission and as the Commission's representative to the Office of Government Ethics, on matters covered by this subpart. The General Counsel will also serve as the Commission's designated agency ethics official to review the financial reports filed by high-level Commission officials under title II of the Ethics in Government Act, as well as otherwise to coordinate and manage the Commission's ethics program.\n\n(b)  Duties of the Counselor.  The Counselor shall:\n\n(1) Coordinate the agency's counseling services and assure that counseling and interpretations on questions of conflict of interests and other matters covered by the regulations in this subpart are available as needed to Regional Deputy Counselors, who shall be appointed by the General Counsel, in coordination with the Chairman of the Commission, for each Regional Office of the Commission;\n\n(2) Render authoritative advice and guidance on matters covered by the regulations in this subpart which are presented to him or her by employees in the Washington, DC headquarters office; and\n\n(3) Receive information on, and resolve or forward to the Commission for consideration, any conflict of interests or apparent conflict of interests which appears in the annual financial disclosure (Standard Form 278 or Standard Form 450), or is disclosed to the General Counsel by a member or employee pursuant to \u00a7 140.735-2a(d) of this part, or otherwise is made known to the General Counsel.\n\n(i) A conflict of interests or apparent conflict of interests is considered resolved by the General Counsel when the affected member or employee has executed an ethics agreement pursuant to 5 CFR 2634.801  et seq.  to undertake specific actions in order to  resolve  the actual or apparent conflict.\n\n(ii) If, after advice and guidance from the General Counsel, a member or employee does not execute an ethics agreement, the conflict of interests is considered unresolved and must be referred to the Commission for resolution or further action consistent with 18 U.S.C. 208 and 28 U.S.C. 535.\n\n(iii)  Where an unresolved conflict of interests or apparent conflict of interests is to be forwarded to the Commission by the General Counsel,  the General Counsel will promptly notify the affected member or employee in writing of his or her intent to forward the matter to the Commission. Any member or employee so affected will be afforded an opportunity to be heard by the Commission through written submission.\n\n(c)  Regional Deputy Counselors.  Regional Deputy Counselors shall:\n\n(1) Give advice and guidance as requested to the employees assigned to their respective Regional Offices; and\n\n(2) Receive information on and refer to the Director of Human Resources, any conflict of interests or appearance of conflict of interests in Statements of Employment and Financial Interests submitted by employees to whom they are required to give advice and guidance.\n\n(d)  Confidentiality of communications.  Communications between the Counselor and Regional Deputy Counselors and an employee shall be confidential, except as deemed necessary by the Commission or the Counselor to carry out the purposes of this subpart and of the laws of the United States. \n 18\n\n18  No attorney-client privilege, however, attaches to such communications since the Counselors are counsel to the Commission, not to the employee. Thus, any evidence of criminal law violations divulged by an employee to the Counselor must be reported by the latter to the Commission, which may refer the matter to the Criminal Division of the Department of Justice and the United States Attorney in whose venue the violations lie.\n\n(e)  Furnishing of conduct regulations.  The Director of Human Resources shall furnish a copy of this Conduct Regulation to each member, employee, and special government employee immediately upon his or her entrance on duty and shall thereafter, annually, and at such other times as circumstances warrant, bring to the attention of each member and employee this Conduct Regulation and all revisions thereof.\n\n(f)  Availability of counseling services.  The Director of Human Resources shall notify each member, employee, and special government employee of the availability of counseling services and of how and where these services are available at the time of entrance on duty and periodically thereafter."], ["33:33:2.0.1.3.8.1.33.1", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.1 Purpose.", "USCG", "", "", "", "This subchapter is intended to promote safety of life and property on Outer Continental Shelf (OCS) facilities, vessels, and other units engaged in OCS activities, protect the marine environment, and implement the Outer Continental Shelf Lands Act (43 U.S.C. 1331  et seq. ), as amended by the Outer Continental Shelf Lands Act Amendments of 1978 (Pub. L. 95-372, 92 Stat. 629)."], ["33:33:2.0.1.3.8.1.33.10", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.30 Judicial review.", "USCG", "", "", "", "(a) Nothing in this subchapter shall be construed to prevent any interested party from seeking judicial review as authorized by law.\n\n(b) Judicial review of the regulations in this subchapter, or any final ruling or order of the Commandant or that person's delegate pursuant to the Act or the regulations in this subchapter, is governed by the judicial review provisions of section 23 of the Act (43 U.S.C. 1349)."], ["33:33:2.0.1.3.8.1.33.11", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.35 Sanctions.", "USCG", "", "", "[CGD 78-160, 47 FR 9376, Mar. 4, 1982, as amended by CGD 96-052, 62 FR 16703, Apr. 8, 1997]", "(a) Any person who fails to comply with:\n\n(1) Any provision of the Act;\n\n(2) Any regulation in this subchapter; or\n\n(3) Any order issued under the Act or the regulations in this subchapter by the Commandant, a District Commander, or an Officer in Charge, Marine Inspection, after notice of the failure and after expiration of any reasonable period allowed for corrective action, shall be liable for a civil penalty for each day of the continuance of the failure.\n\n(b) Any person who knowingly and willfully:\n\n(1) Violates any provision of the Act;\n\n(2) Violates any regulation in this subchapter designed to protect health, safety, or the environment;\n\n(3) Violates any order of the Commandant, District Commander, or Officer in Charge, Marine Inspection, issued under the Act or the regulations in this subchapter that is designed to protect health, safety, or the environment;\n\n(4) Makes any false statement, representation, or certification in any application, record, report, or other document filed or required to be maintained under the Act or the regulations in this subchapter;\n\n(5) Falsifies, tampers with, or renders inaccurate any monitoring device or method of record required to be maintained under this Act or the regulations in this subchapter; or\n\n(6) Reveals any data or information required to be kept confidential by the Act shall, upon conviction, be punished by a fine of not more than $100,000, or by imprisonment for not more than ten years, or both. Each day that a violation under paragraph (b)(1), (b)(2), or (b)(3) of this section continues, or each day that any monitoring device or data recorder remains inoperative or inaccurate because of any activity described in paragraph (b)(5) of this section, constitutes a separate violation.\n\n(c) Whenever a corporation or other entity is subject to prosecution under paragraph (b) of this section, any officer or agent of the corporation or entity who knowingly and willfully authorized, ordered, or carried out the prescribed activity shall be subject to the same fines or imprisonment, or both, as provided for under paragraph (b) of this section.\n\n(d) The penalties prescribed in this section are concurrent and cumulative and the exercise of one does not preclude the exercise of the others. Further, the penalties prescribed in this section are in addition to any other penalties afforded by any other law or regulation."], ["33:33:2.0.1.3.8.1.33.12", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.40 Processing penalty cases.", "USCG", "", "", "", "Apparent violations of the regulations in this subchapter are processed in accordance with subpart 1.07 of 33 CFR part 1 on civil and criminal penalty proceedings, except as follows:\n\n(a) The District Commander refers civil penalty cases to the Secretary of the Interior, or that person's delegate, who, under the Act, assesses, collects, and compromises civil penalties.\n\n(b) If a possible violation investigated by the Coast Guard carries both a civil and a criminal penalty, the District Commander determines whether to refer the case to the U.S. Attorney for criminal prosecution or to the Secretary of the Interior, or that person's delegate, for civil penalty proceedings.\n\n(c) When the U.S. Attorney declines to institute criminal proceedings, the District Commander decides whether to refer the case to the Secretary of the Interior, or that person's delegate, for civil penalty proceedings or to close the case."], ["33:33:2.0.1.3.8.1.33.2", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.3 Applicability.", "USCG", "", "", "[CGD 78-160, 47 FR 9376, Mar. 4, 1982, as amended by USCG-2012-0196, 81 FR 48242, July 22, 2016]", "Unless otherwise stated, this subchapter applies to OCS facilities, vessels, and other units engaged in OCS activities as the term \u201cOCS activities\u201d is defined in \u00a7 140.10. This subchapter does not apply to pipelines and deepwater ports (as the term \u201cdeepwater port\u201d is defined in section 3(10) of the Deepwater Port Act of 1974 (33 U.S.C. 1502)). The regulations in this subchapter (parts 140 through 147) have preemptive effect over state or local regulations in the same field."], ["33:33:2.0.1.3.8.1.33.3", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.4 Relationship to other law.", "USCG", "", "", "", "(a) Design and equipment requirements of this subchapter for OCS facilities, including mobile offshore drilling units in contact with the seabed of the OCS for exploration or exploitation of subsea resources, are in addition to the regulations and orders of the U.S. Geological Survey applicable to those facilities.\n\n(b) Any apparent conflict between the application of any requirement of this subchapter and any regulation or order of the U.S. Geological Survey should immediately be brought to the attention of the Officer in Charge, Marine Inspection.\n\n(c) This subchapter does not establish design requirements for fixed OCS facilities or regulate drilling or production equipment on any OCS facility or attending vessel, except for matters affecting navigation or workplace safety or health."], ["33:33:2.0.1.3.8.1.33.4", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.5 Exemptions during construction.", "USCG", "", "", "", "The Officer in Charge, Marine Inspection, may exempt any unit under construction from any requirements of this subchapter that would be impracticable or unreasonable to apply during construction or erection of the unit."], ["33:33:2.0.1.3.8.1.33.5", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.7 Incorporation by reference.", "USCG", "", "", "[USCG-2012-0196, 81 FR 48242, July 22, 2016]", "(a) Certain material is incorporated by reference into this subchapter with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. All approved material is available for inspection at the U.S. Coast Guard, Office of Design and Engineering Standards (CG-ENG-4), 2703 Martin Luther King Jr. Avenue SE., Stop 7509, Washington, DC 20593-7509, and is available from the sources listed below. It is also available for inspection at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030 or go to  http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html .\n\n(b) American National Standards Institute (ANSI), 25 West 43rd Street, New York, NY 10036, 212-642-4900,  https://www.ansi.org .\n\n(1) ANSI A10.14-1975, Requirements for Safety Belts, Harnesses, Lanyards, Lifelines, and Drop Lines for Construction and Industrial Use, IBR approved for \u00a7 142.42(b).\n\n(2) ANSI/UL 1123-1987, Standard for Marine Buoyant Devices, IBR approved for \u00a7 143.405(a).\n\n(3) ANSI Z41-1983, American National Standard for Personal Protection-Protective Footwear, IBR approved for \u00a7 142.33(a) and (b).\n\n(4) ANSI Z87.1-1979, Practice for Occupational and Educational Eye and Face Protection, IBR approved for \u00a7 142.27(a) and (c).\n\n(5) ANSI Z88.2-1980, Practices for Respiratory Protection, IBR approved for \u00a7 142.39(a) through (c).\n\n(6) ANSI Z89.1-1981, Safety Requirements for Industrial Head Protection, IBR approved for \u00a7 142.30(a) and (b).\n\n(c) International Maritime Organization (IMO) Publishing, 4 Albert Embankment, London SE1 7SR, United Kingdom, +44 (0)20 7735 7611,  http://www.imo.org .\n\n(1) IMO Assembly Resolution A.414 (XI), Code for Construction and Equipment of Mobile Offshore Drilling Units, IBR approved for \u00a7\u00a7 143.207(c) and 146.205(c).\n\n(2) [Reserved]\n\n(d) National Fire Protection Association (NFPA), 1 Batterymarch Park, Quincy, MA 02169, 617-770-3000,  http://www.nfpa.org .\n\n(1) NFPA 10, Standard for Portable Fire Extinguishers, 2010 Edition, effective December 5, 2009, IBR approved for \u00a7 145.01(b).\n\n(2) [Reserved]"], ["33:33:2.0.1.3.8.1.33.6", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.10 Definitions.", "USCG", "", "", "[CGD 78-160, 47 FR 9376, Mar. 4, 1982, as amended by CGD 79-077, 51 FR 25059, July 10, 1986; CGD 84-098b, 54 FR 21571, May 18, 1989; USCG-2001-9045, 67 FR 5916, Feb. 7, 2002; USCG-2011-0257, 76 FR 31837, June 2, 2011; USCG-2013-0797, 79 FR 36405, June 27, 2014; USCG-2012-0850, 80 FR 16990, Mar. 31, 2015]", "As used in this subchapter:\n\nAct  means the Outer Continental Shelf Lands Act of 1953 (43 U.S.C. 1331  et seq. ), as amended by the Outer Continental Shelf Lands Act Amendments of 1978 (Pub. L. 95-372).\n\nApproved  means approved by the Commandant, unless otherwise indicated.\n\nAttending vessel  means a vessel which is moored close to and readily accessible from an OCS facility for the purpose of providing power, fuel, or other services to the operation being conducted on the facility.\n\nBureau of Safety and Environmental Enforcement inspector or BSEE inspector  means an individual employed by the Bureau of Safety and Environmental Enforcement who inspects fixed OCS facilities on behalf of the Coast Guard to determine whether the requirements of this subchapter are met.\n\nCommandant  means Commandant of the Coast Guard or that person's authorized representative.\n\nConstructed  means the date\u2014\n\n(1) The vessel's keel was laid; or\n\n(2) Construction identifiable with the vessel or facility began and assembly of that vessel or facility commenced comprising of 50 metric tons or at least 1 percent of the estimated mass of all structural material, whichever is less.\n\nDevelopment  means those activities which take place following discovery of minerals in paying quantities, including, but not limited to, geophysical activity, drilling, and platform construction, and which are for the purpose of ultimately producing the minerals discovered.\n\nDistrict Commander  means an officer who commands a Coast Guard District described in part 3 of this chapter or that person's authorized representative.\n\nExploration  means the process of searching for minerals, including, but not limited to, (1) geophysical surveys where magnetic, gravity, seismic, or other systems are used to detect or imply the presence of such minerals, and (2) any drilling, whether on or off known geological structures, including the drilling of a well in which a discovery of oil or natural gas in paying quantities is made and the drilling of any additional delineation well after the discovery which is needed to delineate any reservoir and to enable the lessee to determine whether to proceed with development and production.\n\nFixed OCS facility  means a bottom founded OCS facility permanently attached to the seabed or subsoil of the OCS, including platforms, guyed towers, articulated gravity platforms, and other structures.\n\nFloating OCS facility  means a buoyant OCS facility securely and substantially moored so that it cannot be moved without a special effort. This term includes tension leg platforms and permanently moored semisubmersibles or shipshape hulls but does not include mobile offshore drilling units and other vessels.\n\nInvestigating officer  means a person assigned by the Commandant, a District Commander, or an Officer in Charge, Marine Inspection, to conduct an investigation of an accident, casualty, or other incident.\n\nManned facility  means an OCS facility on which people are routinely accommodated for more than 12 hours in successive 24 hour periods.\n\nManned platform  means a fixed OCS facility on which people are routinely accommodated for more than 12 hours in successive 24 hour periods.\n\nMarine inspector  means a person designated as such by an Officer in Charge, Marine Inspection, to perform inspections of units to determine whether or not the requirements of laws administered by the Coast Guard and of Coast Guard regulations are met.\n\nMinerals  includes oil, gas, sulphur, geopressured-geothermal and associated resources, and all other minerals which are authorized by an Act of Congress to be produced from \u201cpublic lands\u201d as defined in section 103 of the Federal Lands Policy and Management Act of 1976 (43 U.S.C. 1702(e)).\n\nMobile offshore drilling unit  or  MODU  means a vessel, other than a public vessel of the United States, capable of engaging in drilling operations for exploration or exploitation of subsea resources.\n\nOfficer in Charge, Marine Inspection  means a person who commands a Marine Inspection Zone described in part 3 of this chapter and who is immediately responsible for the performance of duties with respect to inspections, enforcement, and administration of regulations governing units.\n\nOperator  means\u2014(1) In the case of a vessel, a charterer by demise or any other person who is responsible for the operation, manning, victualing, and supplying of the vessel; or\n\n(2) In the case of an OCS facility, the operator as defined in 30 CFR 250.2(gg).\n\nOuter Continental Shelf  or  OCS  means all submerged lands lying seaward and outside of the area of \u201clands beneath navigable waters\u201d as defined in section 2(a) of the Submerged Lands Act (43 U.S.C. 1301(a)) and of which the subsoil and seabed appertain to the United States and are subject to its jurisdiction and control.\n\nOCS activity  means any offshore activity associated with exploration for, or development or production of, the minerals of the Outer Continental Shelf.\n\nOCS facility  means any artificial island, installation, or other device permanently or temporarily attached to the subsoil or seabed of the Outer Continental Shelf, erected for the purpose of exploring for, developing, or producing resources therefrom, or any such installation or other device (other than a ship or vessel) for the purpose of transporting such resources. The term includes mobile offshore drilling units when in contact with the seabed of the OCS for exploration or exploitation of subsea resources. The term does not include any pipeline or deepwater port (as the term \u201cdeepwater port\u201d is defined in section 3(10) of the Deepwater Port Act of 1974 (33 U.S.C. 1502)).\n\nOwner  means a person holding title to or, in the absence of title, other indicia of ownership of a unit; however, this does not include a person who holds indicia of ownership primarily to protect a security interest in the unit and does not participate in the management or operation of the unit.\n\nPerson  means an individual, association, partnership, consortium, joint venture, private, public, or municipal firm or corporation, or a government entity.\n\nPerson in charge  means the master or other individual designated as such by the owner or operator under \u00a7 146.5 of this subchapter or 46 CFR 109.107.\n\nPersonnel  means individuals who are employed by leaseholders, permit holders, operators, owners, contractors, or subcontractors and who are on a unit by reason of their employment.\n\nProduction  means those activities which take place after the successful completion of any means for the removal of minerals, including, but not limited to, such removal, field operations, transfer of minerals to shore, operation monitoring, maintenance, and workover.\n\nRebuilt  means having had substantial alteration or reconstruction of the hull or principal structural component.\n\nStandby vessel  means a vessel meeting the requirements of part 143, subpart E, of this chapter and specifically designated in an Emergency Evacuation Plan under \u00a7 146.140 or \u00a7 146.210 of this chapter to provide rapid evacuation assistance in the event of an emergency.\n\nUnit  means any OCS facility, vessel, rig, platform, or other vehicle or structure, domestic or foreign.\n\nUnmanned facility  means an OCS facility, other than a floating facility or mobile offshore drilling unit, which is not a manned facility even though it may be continuously serviced by an attending vessel.\n\nUnmanned platform  means a fixed, bottom-founded OCS facility which is not a manned facility even though it may be continuously serviced by an attending vessel.\n\nVessel  means every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water."], ["33:33:2.0.1.3.8.1.33.7", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.15 Equivalents and approved equipment.", "USCG", "", "", "[CGD 78-160, 47 FR 9376, Mar. 4, 1982, as amended at CGD 88-052, 53 FR 25121, July 1, 1988; CGD 96-026, 61 FR 33665, June 28, 1996; USCG-2010-0351, 75 FR 36283, June 25, 2010; USCG-2014-0410, 79 FR 38434, July 7, 2014]", "(a) The use of alternate equipment or procedures for those specified in this subchapter may be permitted by an Officer in Charge, Marine Inspection, to the extent and upon conditions as will insure a degree of safety comparable to or greater than that provided by the minimum standards in this subchapter.\n\n(b) Where equipment in this subchapter is required to be of an approved type, the equipment requires the specific approval of the Commandant. Approvals are published in the  Federal Register  and COMDTINST M16714.3 (Series) Equipment List, available from Coast Guard Headquarters. Contact Commandant (CG-ENG), Attn: Office of Design and Engineering Standards, U.S. Coast Guard Stop 7509, 2703 Martin Luther King Jr. Avenue SE., Washington, DC 20593-7509.\n\n(c) Specifications for certain items required to be of an approved type are contained in 46 CFR parts 160 through 164."], ["33:33:2.0.1.3.8.1.33.8", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.20 Delegations.", "USCG", "", "", "", "(a) Each District Commander is responsible for the administration and enforcement of the regulations in this subchapter within that person's assigned district.\n\n(b) Under the general superintendence of the District Commander, the Officer in Charge, Marine Inspection, is delegated authority to administer and enforce the regulations in this subchapter.\n\n(c) Authority delegated under this section may be redelegated as necessary by the delegate."], ["33:33:2.0.1.3.8.1.33.9", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "A", "Subpart A\u2014General", "", "\u00a7 140.25 Appeals.", "USCG", "", "", "", "(a) Any person directly affected by an action or decision of an Officer in Charge, Marine Inspection, under the Act or the regulations in this subchapter may request reconsideration of that action or decision. If still dissatisfied, that person may appeal the action or decision of the Officer in Charge, Marine Inspection, within 30 days to the District Commander of the District in which the action was taken or the decision made. The District Commander issues a decision after reviewing the appeal submitted under this paragraph.\n\n(b) Any person not satisfied with the decision of a District Commander may appeal that decision within 30 days to the Commandant, who issues a ruling after reviewing the appeal submitted under this paragraph. Rulings of the Commandant constitute final agency action.\n\n(c) An appeal to the District Commander or Commandant:\n\n(1) Must be made in writing, except in an emergency when an oral appeal may be accepted;\n\n(2) Must be submitted to the District Commander of the District in which the action was taken or the decision made;\n\n(3) Must describe the decision or action being appealed;\n\n(4) Must state the reasons why the action or decision should be set aside or modified; and\n\n(5) May contain any supporting documents and evidence that the appellant wishes to have considered.\n\n(d) Pending determination of any appeal, the action or decision appealed remains in effect, unless suspended by the District Commander to whom the appeal was made or by the Commandant."], ["33:33:2.0.1.3.8.2.33.1", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "B", "Subpart B\u2014Inspections", "", "\u00a7 140.101 Inspection by Coast Guard marine inspectors or Bureau of Safety and Environmental Enforcement inspectors.", "USCG", "", "", "[CGD 78-160, 47 FR 9376, Mar. 4, 1982, as amended by CGD 84-098a, 53 FR 18980, May 26, 1988; USCG-2001-9045, 67 FR 5916, Feb. 7, 2002; USCG-2011-0257, 76 FR 31837, June 2, 2011; USCG-2013-0797, 79 FR 35405, June 27, 2014]", "(a) Each unit engaged in OCS activities is subject to inspection by the Coast Guard.\n\n(b) On behalf of the Coast Guard, each fixed OCS facility engaged in OCS activities is subject to inspection by the Bureau of Safety and Environmental Enforcement (BSEE).\n\n(c) Under the direction of the Officer in Charge, Marine Inspection, Coast Guard marine inspectors may inspect units engaged in OCS activities, and BSEE inspectors may inspect fixed OCS facilities, to determine whether the requirements of this subchapter are met. These inspections may be conducted with or without advance notice at any time deemed necessary by the Officer in Charge, Marine Inspection, or BSEE.\n\n(d) As part of an inspection, a Coast Guard marine inspector or a BSEE inspector may review records and require and observe the conduct of emergency drills and other tests and procedures as may be necessary to demonstrate to that person's satisfaction that the unit and its equipment are in full compliance with applicable Coast Guard regulations. The Coast Guard marine inspector or the BSEE inspector consults with the person in charge of the unit before requiring a drill or other test or procedure to be conducted to minimize disruption of unit activities and risk to life or property.\n\n(e) Coast Guard inspections of foreign units recognize valid international certificates accepted by the United States, including Safety of Life at Sea (SOLAS), Loadline, and Mobile Offshore Drilling Unit (MODU) Code certificates for matters covered by the certificates, unless there are clear grounds for believing that the condition of the unit or its equipment does not correspond substantially with the particulars of the certificate.\n\n(f) Coast Guard marine inspectors conduct an initial inspection of each fixed OCS facility to determine whether the facility is in compliance with the requirements of this subchapter."], ["33:33:2.0.1.3.8.2.33.2", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "B", "Subpart B\u2014Inspections", "", "\u00a7 140.103 Annual inspection of fixed OCS facilities.", "USCG", "", "", "[CGD 84-098a, 53 FR 18980, May 26, 1988, as amended by USCG-2001-9045, 67 FR 5916, Feb. 7, 2002; USCG-2011-0257, 76 FR 31837, June 2, 2011; USCG-2013-0797, 79 FR 36405, June 27, 2014]", "(a) The owner or operator of each fixed OCS facility shall ensure that the facility is inspected, at intervals not to exceed 12 months, to determine whether the facility is in compliance with the requirements of this subchapter.\n\n(b) Except for initial inspections under \u00a7 140.101(f), inspections by Coast Guard marine inspectors and Bureau of Safety and Environmental Enforcement (BSEE) inspectors do not meet the requirements for an inspection under paragraph (a) of this section.\n\n(c) Except for initial inspections under \u00a7 140.101(f), the results of the inspection under paragraph (a) of this section must be recorded on form CG-5432. Forms CG-5432 may be obtained from the Officer in Charge, Marine Inspection. A copy of the completed form must be kept for 2 years after the inspection under paragraph (a) of this section is conducted and the form made available to the Coast Guard and BOEMRE on request. For manned fixed OCS facilities, the copy of the completed form must be kept on the facility. For unmanned fixed OCS facilities, the copy of the completed form must be kept either at the nearest manned fixed OCS facility or, if there is no manned fixed OCS facility in the area, at the nearest field office of the owner or operator. In addition, the owner or operator must submit, to the appropriate BSEE District office, a copy of each completed form CG-5432 that indicates outstanding deficiencies or hazards, within 30 days after completion of the inspection."], ["33:33:2.0.1.3.8.2.33.3", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "B", "Subpart B\u2014Inspections", "", "\u00a7 140.105 Correction of deficiencies and hazards.", "USCG", "", "", "[CGD84-098a, 53 FR 18981, May 26, 1988, as amended by USCG-2001-9045, 67 FR 5916, Feb. 7, 2002; USCG-2013-0797, 79 FR 36405, June 27, 2014]", "(a) Lifesaving and fire fighting equipment which is found defective during an inspection by a Coast Guard marine inspector or a Bureau of Safety and Environmental Enforcement (BSEE) inspector and which, in the opinion of the inspector, cannot be satisfactorily repaired must be so mutilated in the presence of the inspector that it cannot be used for the purpose for which it was originally intended. Lifesaving and fire fighting equipment subsequently determined to be unrepairable must be similarly mutilated in the presence of the person making that determination.\n\n(b) Any deficiency or hazard discovered during an inspection by a Coast Guard marine inspector or a BSEE inspector is reported to the unit's owner or operator, who shall have the deficiency or hazard corrected or eliminated as soon as practicable and within the period of time specified by the inspector.\n\n(c) Deficiencies and hazards discovered during an inspection of a fixed OCS facility under \u00a7 140.103(a) must be corrected or eliminated, if practicable, before the form CG-5432 is completed. Deficiencies and hazards that are not corrected or eliminated by the time the form is completed must be indicated on the form as \u201coutstanding\u201d and the form submitted to the appropriate BSEE District office. Upon receipt of a form CG-5432 indicating outstanding deficiencies or hazards, BSEE informs, by letter, the owner or operator of the fixed OCS facility of the deficiencies or hazards and the time period specified to correct or eliminate the deficiencies or hazards.\n\n(d) For lifesaving and fire fighting equipment deficiencies on fixed OCS facilities that cannot be corrected before the submission of form CG-5432, the owner or operator must contact the appropriate BSEE District Supervisor to request a time period for repair of the item. The owner or operator must include a description of the deficiency and the time period approved by BSEE for correction of the deficiency in the comment section of form CG-5432.\n\n(e) Where a deficiency or hazard remains uncorrected or uneliminated after the expiration of the time specified for correction or elimination, the Officer in Charge, Marine Inspection or BSEE (for deficiencies or hazards discovered by BSEE during an inspection of a fixed OCS facility), initiates appropriate enforcement measures."], ["33:33:2.0.1.3.8.3.33.1", 33, "Navigation and Navigable Waters", "I", "N", "140", "PART 140\u2014GENERAL", "C", "Subpart C\u2014Investigations", "", "\u00a7 140.201 General.", "USCG", "", "", "", "Under the direction of the Officer in Charge, Marine Inspection, investigating officers investigate the following incidents occurring as a result of OCS activities:\n\n(a) Death.\n\n(b) Injury resulting in substantial impairment of any bodily unit or function.\n\n(c) Fire which causes death, serious injury or property damage exceeding $25,000.\n\n(d) Oil spillage exceeding two hundred barrels of oil in one occurrence during a thirty-day period.\n\n(e) Other injuries, casualties, accidents, complaints of unsafe working conditions, fires, pollution, and incidents occurring as a result of OCS activities as the Officer in Charge, Marine Inspection, deems necessary to promote the safety of life or property or protect the marine environment."]], "truncated": false, "filtered_table_rows_count": 154, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, title_number, title_name, chapter, subchapter, part_number, part_name, subpart, subpart_name, 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