AT (49-18)-12 Appendices: ABC D E F Description of LMFBR Demonstration Plant Facility and Site Provisions Applicable to Activities Involving the Use of Additional Principal Obligations of TVA and Additional Provisions Generally Applicable to the Contract Additional Principal Undertakings of Commonwealth Edison AT (49-18)-12 AGREEMENT AMONG UNITED STATES OF AMERICA AS REPRESENTED BY THE UNITED STATES ATOMIC ENERGY COMMISSION AND TENNESSEE VALLEY AUTHORITY AND COMMONWEALTH EDISON COMPANY AND PROJECT MANAGEMENT CORPORATION This Agreement, by and among the United States of America (hereinafter "Government"), as represented by the United States Atomic Energy Commission (hereinafter "AEC" or "Commission"); Tennessee Valley Authority (hereinafter "TVA"); Commonwealth Edison Company (hereinafter "CE"); and Project Management Corporation (hereinafter "PMC"), shall be effective as of the 13th day of January 1972. By Memorandum of Understanding executed the 7th day of August, 1972, as amended, (hereinafter "Memorandum of Understanding") AEC, PMC, CE, TVA and Breeder Reactor Corporation agreed to negotiate with a view to entering into definitive agreements through which they would cooperatively participate in the design, construction, and operation of the Nation's first large-scale Liquid Metal Fast Breeder Reactor Demonstration Plant. The parties to this contract recognize the following principal objectives for this Project: 1. To attempt to fulfill the commitment for the successful demonstration of the Liquid Metal Fast Breeder Reactor by 1980, as announced by the President of the United States in his June 4, 1971 Message on Energy to the Congress of the United States. 2. To help (1) confirm and demonstrate the potential value and environmental desirability of the LMFBR concept as a practical and economic future option for generating electric power (consideration to the impact of the Demonstration Plant on the environment will be given throughout the design and planning phase of the Project and will be integrated into design and planning decisions); (ii) confirm the value of this concept for conserving important nonrenewable natural resources; (111) develop for the benefit of government, industry, and the public, important technological and economic data, (iv) provide a broad base of experience and information important for commercial and industrial application of the LMFBR concept; and (v) verify certain key characteristics and capabilities of breeder power plants for operation on utility systems such as licensability and safety, operability, reliability, availability, maintainability, flexibility, and prospect for economy. 3. To utilize to the maximum extent practicable the technology developed or being developed in the AEC's programs recognizing that this Project is an indispensable part of AEC's overall long-range LMFBR research and development program and that the base program is and will be essential to the success of the LMFBR Demonstration Plant. In carrying out its part in this Project, the AEC will do everything that is necessary and appropriate, in a manner consistent with its statutory authority, to assure that it meets its objectives, commitments and responsibilities and contractual obligations which include: a. assisting PMC to produce a successful Demonstration Plant and demonstrate satisfactory operation over the period of this contract, b. advancing the AEC's base program as required to achieve the objectives of this Project, c. utilizing to the maximum degree the resources and capability being developed by the AEC in its technology and engineering programs, d. contributing directly to development and utilization of the industrial capability to produce these types of advanced reactors, and 72-818 - 76 - 17 e. otherwise furthering the development and utilization of the fast breeder reactor as an energy conversion option for the future. The parties to this contract are bringing a broad spectrum of expertise, resources and commitments to the Project. Both CE and TVA have participated in the Project Definition phase of Round IV of the AEC's Power Reactor Demonstration Program and have been leaders in an effort among the private, public, municipal and cooperatively owned utilities of this country to raise approximately $250,000,000 for the Project. Both TVA and CE are making substantial financial contributions to the Project. In addition TVA is providing the site for the LF3R Demonstration Plant. Together, CE and TVA will bring to the Project management expertise and utility operating experience and will represent the interests of the many utility contributors in assuring that the design and operating features of the Plant take into consideration pertinent technical and economic requirements for operation of a breeder electric generating plant on a utility system. AEC brings to the Project the expertise of its staff, its laboratories and its contractors in the LFBR Program and other major developmental programs; its experience in the management of the design, construction and operation of a large number of experimental reactor plants and test facilities; and its background and experience in applying such resources toward the successful commercial introduction and operation of nuclear power plants through cooperative projects and other complex developmental undertakings. Moreover, the AEC will provide a large, direct financial and personnel contribution to the Project, as well as major support from its base programs. In addition, AEC agrees to accept the open-end riske connected with the Project beyond the fixed contribution of the utilities and the expressed additional commitments of TVA and CE, and AEC agrees that if the Project resources prove to be insufficient it will endeavor to obtain additional legal authority and funds to make additional contributions to the Project, all as specifically provided in this contract. This contract is entered into pursuant to applicable law, including section 106 of Public Law 91-273, as amended by Public Law 92-84. IN CONSIDERATION of the foregoing and of the promises hereinafter set forth, the parties hereto agree as follows: 1.0 Definitions 1.1 As used in this contract (including its appendices), the following terms are defined as set forth in this paragraph. |