Subpart 950.70 - Nuclear Indemnification of

DOE Contractors

Parent topic: PART 950 - EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT

950.7000 Scope of subpart.

This subpart describes the established policies concerning indemnification of Department of Energy

(DOE) contractors against public liability for a nuclear incident arising out of or in connection with

the contract activity.

950.7001 Applicability

The policies and procedures of this subpart shall govern DOE's entering into agreements of

indemnification with recipients of a contract whose work under the contract involves the risk of

public liability for a nuclear incident or precautionary evacuation.

950.7002 Definitions.

DOE contractor means any DOE prime contractor, including any agency of the Federal Government

with which DOE has entered into an interagency agreement.

Nuclear incident means any occurrence, including an extraordinary nuclear occurrence, within the

United States causing, within or outside the United States, 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 source, special nuclear, or byproduct

material. The term includes any such occurrence outside the United States if such occurrence

involves source, special nuclear, or byproduct material owned by, and used by or under contract

with, the United States.

Person indemnified means -

(1) With respect to a nuclear incident occurring within the United States or outside the United

States as the term is defined above and with respect to any nuclear incident in connection with the

design, development, construction, operation, repair, maintenance, or use of the nuclear ship

Savannah, the person with whom an indemnity agreement is executed or who is required to maintain

financial protection, and any other person who may be liable for public liability; or

(2) With respect to any other nuclear incident occurring outside the United States, the person with

whom an indemnity agreement is executed and any other person who may be liable for public

liability by reason of his activities under any contract with the Secretary of Energy or any project to

which indemnification under the provisions of section 170d. of the Atomic Energy Act of 1954, as

amended, has been extended or under any subcontract, purchase order, or other agreement, or any

tier under any such contract or project.
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 at the site of and in connection with the activity where the

nuclear incident occurs; (2) claims arising out of an act of war; and (3) whenever used in subsections

a., c., and k. of section 170 of the Atomic Energy Act of 1954, as amended, claims for loss of, or

damage to, or loss of use of property which is located at the site of and used in connection with the

licensed activity where the nuclear incident occurs. Public liability also includes damage to property

of persons indemnified: Provided, that such property is covered under the terms of the financial

protection required, except property which is located at the site of and used in connection with the

activity where the nuclear incident occurs.

950.7003 Nuclear hazards indemnity.

(a) Section 170d. of the Atomic Energy Act, as amended, requires DOE “to enter into agreements of

indemnification with any person who may conduct activities under a contract with DOE that involve

the risk of public liability * * *.” However, DOE contractors whose activities are already subject to

indemnification by the Nuclear Regulatory Commission are not eligible for such statutory indemnity.

See 950.7006 below.

(b) The Heads of Contracting Activities shall assure that contracts subject to this requirement

contain the appropriate nuclear hazards indemnity provisions.

950.7004-950.7005 [Reserved]

950.7006 Statutory nuclear hazards indemnity agreement.

(a) The contract clause contained in 952.250-70 shall be incorporated in all contracts in which the

contractor is under risk of public liability for a nuclear incident or precautionary evacuation arising

out of or in connection with the contract work, including such events caused by a product delivered

to a DOE-owned facility for use by DOE or its contractors. The clause at 952.250-70 shall be included

in contracts with architect-engineer contractors for the design of a DOE facility, the construction or

operation of which may involve the risk of public liability for a nuclear incident or a precautionary

evacuation.

(b) However, this clause shall not be included in contracts in which the contractor is subject to

Nuclear Regulatory Commission (NRC) financial protection requirements under section 170b. of the

Act or NRC agreements of indemnification under section 170c. or k. of the Act for activities to be

performed under the contract.

950.7007-950.7008 [Reserved]
950.7009 Fees.

No fee will be charged a DOE contractor for a statutory nuclear hazards indemnity agreement.

950.7010 Financial protection requirements.

DOE contractors with whom statutory nuclear hazards indemnity agreements under the authority of

section 170d. of the Atomic Energy Act of 1954, as amended, are executed will not normally be

required or permitted to furnish financial protection by purchase of insurance to cover public

liability for nuclear incidents. However, if authorized by the DOE Headquarters office having

responsibility for contractor casualty insurance programs, DOE contractors may be (a) permitted to

furnish financial protection to themselves or (b) permitted to continue to carry such insurance at

cost to the Government if they currently maintain insurance for such liability.