This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

1590 

Vol. 80, No. 8 

Tuesday, January 13, 2015 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 440 

[Docket No.: FAA–2014–1012; Notice No. 

14–10] 

RIN 2120–AK44 

Reciprocal Waivers of Claims for 

Licensed or Permitted Launch and 

Reentry Activities 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to amend 

the reciprocal waivers of claims 

regulations so that customers would 

waive claims against all the customers 

involved in a launch or reentry, 

including those signing a different set of 

reciprocal waivers. Also, customers of 

any customer contracting directly with 

a licensee or permittee would not have 

to sign a waiver directly with the 

licensee or permittee, other customers, 

or the FAA. The FAA also proposes to 

add an appendix to provide permittees 

with an example of a Waiver of Claims 

and Assumption of Responsibility for 

Permitted Activities with No Customer. 

The proposed rule would incorporate 

the reciprocal waiver of claims 

requirements in the regulatory text, 

ensure that customers would waive 

claims against all other customers 

involved in a launch or reentry, 

including those signing different 

reciprocal waivers, reduce the need for 

licensees and permittees to request a 

partial waiver of the reciprocal waiver 

of claims requirements and for the FAA 

to process those requests, and provide a 

reciprocal waiver template for 

permittees with no customers, reducing 

the need for the FAA to assist such a 

permittee in drafting its cross waivers. 

DATES: Send comments on or before 

March 16, 2015. 

ADDRESSES: Send comments identified 

by docket number FAA–2014–1012 

using any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30; U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE., Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE., Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at (202) 493–2251. 

Privacy: The FAA will post all 

comments it receives, without change, 

to http://www.regulations.gov, including 

any personal information the 

commenter provides. Using the search 

function of the docket Web site, anyone 

can find and read the electronic form of 

all comments received into any FAA 

dockets, including the name of the 

individual sending the comment (or 

signing the comment for an association, 

business, labor union, etc.). DOT’s 

complete Privacy Act Statement can be 

found in the Federal Register published 

on April 11, 2000 (65 FR 19477–19478), 

as well as at http://DocketsInfo.dot.gov. 

Docket: Background documents or 

comments received may be read at 

http://www.regulations.gov at any time. 

Follow the online instructions for 

accessing the docket or Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

proposed rule, contact Shirley McBride, 

Regulations Program Lead, Commercial 

Space Transportation, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone (202) 267–7470; email 

Shirley.McBride@faa.gov. 

For legal questions concerning this 

proposed rule, contact Sabrina Jawed, 

Attorney, AGC–200, Office of the Chief 

Counsel, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone (202) 267–8839; email 

Sabrina.Jawed@faa.gov. 

SUPPLEMENTARY INFORMATION: See the 

‘‘Additional Information’’ section for 

information on how to comment on this 

proposal and how the FAA will handle 

comments received. The ‘‘Additional 

Information’’ section also contains 

related information about the docket, 

privacy, the handling of proprietary or 

confidential business information. In 

addition, there is information on 

obtaining copies of related rulemaking 

documents. 

Authority for This Rulemaking 

The Commercial Space Launch Act of 

1984, as amended at 51 U.S.C. 50901– 

50923 (the Act), authorizes the 

Department of Transportation and thus 

the FAA, through delegations, to 

oversee, license, and regulate 

commercial launch and reentry 

activities, and the operation of launch 

and reentry sites as carried out by U.S. 

citizens or within the United States. 51 

U.S.C. 50904, 50905. The Act directs the 

FAA to exercise this responsibility 

consistent with public health and safety, 

safety of property, and the national 

security and foreign policy interests of 

the United States. 51 U.S.C. 50905. 

Section 50901(a)(7) directs the FAA to 

regulate only to the extent necessary, in 

relevant part, to protect the public 

health and safety and safety of property. 

The FAA is also responsible for 

encouraging, facilitating, and promoting 

commercial space launches by the 

private sector. 51 U.S.C. 50903. 

The statute under which the Secretary 

of Transportation regulates commercial 

space transportation, 51 U.S.C. subtitle 

V, chapter 509, sections 50901–50923 

(chapter 509), requires that, for each 

commercial space launch or reentry, the 

Department of Transportation (DOT) 

and, through delegation, the Federal 

Aviation Administration (FAA) enter 

into a reciprocal waiver of claims 

agreement with ‘‘the licensee or 

transferee, contractors, subcontractors, 

crew, space flight participants, and 

customers of the licensee or transferee, 

and contractors and subcontractors of 

the customers. . . .’’ 51 U.S.C. 

50914(b)(2). This requirement also 

applies to permittees under 51 U.S.C. 

50906(i). This rule changes Title 14, 

Code of Federal Regulations (14 CFR) 

440.3, 440.17 and appendices B and C 


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1See Financial Responsibility Requirements for 

Licensed Launch Activities, Final Rule, 63 FR 45592 

(Aug. 26, 1998). 

2See Financial Responsibility Requirements for 

Licensed Reentry Activities, Final Rule, 65 FR 

56670 (Sept. 19, 2000). 

3See Human Space Flight Requirements for Crew 

and Space Flight Participants, Final Rule, 71 FR 

75616 (Dec. 5, 2006). 

4See Clarification of Reciprocal Waivers of 

Claims for Multiple-Customer Commercial Space 

Launch and Reentry, Technical Amendment, 76 FR 

8629 (Feb. 15, 2011). 

5Space Station—Here we Come! NASA Press 

Release: http://www.nasa.gov/audience/

foreducators/station-here-we-come.html (last 

visited February 2, 2014). 

6 A person is an individual or an entity organized 

or existing under the laws of a State or country. 51 

U.S.C. 50901(12), 14 CFR 401.5. The students and 

NanoRacks were persons because the students are 

individuals and NanoRacks is an entity, a limited 

liability corporation. 

7Waiver of Requirement to Enter Into a 

Reciprocal Waiver of Claims Agreement With All 

Customers, Notice of Waiver, 77 FR 63221 (Oct. 16, 

2012). 

8Waiver of Requirement to Enter Into a 

Reciprocal Waiver of Claims Agreement With All 

Customers for Orbital Sciences Corporation, Notice 

of Waiver, 78 FR 70392 (Nov. 25, 2013); Waiver of 

Requirement to Enter Into a Reciprocal Waiver of 

Claims Agreement With All Customers for Orbital 

Sciences Corporation, Notice of Waiver, 78 FR 

57215 (Sept. 17, 2013). The FAA has also granted 

waivers that it did not publish in the Federal 

Register because they did not present any novel 

issues. 

to address new scenarios involving 

hosted payloads. 

I. Background 

The FAA first promulgated 

regulations regarding reciprocal waivers 

of claims agreements in 1998 1 at 14 CFR 

part 440, and included appendix B as an 

example of an Agreement of Waiver of 

Claims and Assumption of 

Responsibility for Licensed Activities. 

In 2000 and 2006, respectively, the FAA 

amended its regulations to include these 

same requirements for licensed 

reentries 2 and permitted launches.3 The 

2006 final rule also added appendix C 

as an example of an Agreement for 

Waiver of Claims and Assumption of 

Responsibility for Permitted Activities. 

In the original requirements, the FAA 

referenced the reciprocal waiver of 

claims as a ‘‘three-party agreement’’ 

(i.e., between the licensee or permittee, 

its customer, and the FAA). The term 

‘‘three-party’’ created confusion and 

caused some customers of commercial 

space launches to believe that only three 

parties were necessary to complete a 

waiver, even if there were multiple 

customers associated with a single 

launch. In other words, according to 

some, one customer could sign the 

reciprocal waiver with the licensee or 

permittee and the U.S. Government and 

by so doing waive not only its own 

claims but also the claims of all other 

customers to the launch. Appendices B 

and C defined ‘‘Customer’’ as ‘‘the 

above-named customer on behalf of the 

Customer and any person described in 

§ 440.3 of the Regulations.’’ Again, some 

customers construed this language to 

mean one customer could sign on behalf 

of all other customers. 

In 2011, the FAA amended § 440.17 

and the appendices to part 440 to clarify 

that each individual customer must 

enter into the reciprocal waiver of 

claims, and a customer does not sign on 

behalf of other customers. In doing so, 

the FAA removed the term ‘‘threeparty’’ from § 440.17(c) and from 

paragraph 5(d) of the appendices to 

dispel the notions that only three parties 

had to sign the reciprocal waivers and 

that one customer could sign on behalf 

of the remaining customers in a multicustomer launch.4

In 2012, the FAA became aware of a 

new scenario where the U.S. 

Government is a customer of a licensee, 

and the Government provides its 

customers’ payloads to the licensee. 

This scenario makes compliance with 

part 440 challenging for the licensee 

because the licensee is not contracting 

directly with all its customers, and there 

are a large number of total customers. 

Since 2012, the FAA has licensed 

additional launches that raised similar 

issues, and it expects to continue to see 

increasingly complex scenarios. The 

FAA briefly describes the first of these 

launches below to provide a better 

understanding of the issues it would 

address with this proposed rule. 

On October 7, 2012, SpaceX launched 

a Falcon 9 rocket carrying its Dragon 

spacecraft as part of NASA’s first 

contracted cargo delivery flight to the 

International Space Station (ISS). In 

addition to providing supplies to the 

ISS, Dragon carried a number of student 

experiments as part of NASA’s Student 

Spaceflight Experiments Program 

(SSEP). NASA described SSEP as a 

national science, technology, 

engineering, and mathematics education 

initiative.5 NanoRacks, LLC 

(‘‘NanoRacks’’), contracted with NASA 

and arranged to carry the student 

experiments on a locker insert to put 

into an experimental locker onboard the 

ISS. Under the FAA’s definitions, 

NanoRacks and each student who 

placed a payload onboard the 

NanoRacks insert qualified as a 

‘‘customer’’. Section 440.3 defines a 

customer, in relevant part, as any person 

with rights in the payload or any part of 

the payload, or any person who has 

placed property onboard the payload for 

launch, reentry, or payload services.6

Accordingly, because NanoRacks and 

the students were persons who had 

rights in their respective payloads, the 

locker insert and the experiments, due 

to their ownership of those objects, and 

because they placed property onboard 

the Dragon, they were customers. 

Therefore, § 440.17 required their 

signatures as customers on the 

reciprocal waivers of claims along with 

the licensee (SpaceX), and the FAA. 

SpaceX had a contract with NASA, 

but was not in a contractual relationship 

with NanoRacks or any of the students 

placing experiments onboard Dragon. 

On September 20, 2012, SpaceX 

submitted a petition to the FAA 

requesting a partial waiver of § 440.17, 

which requires a licensee to enter into 

a reciprocal waiver of claims with each 

of its customers.7 To be in compliance 

with § 440.17, SpaceX would have first 

had to determine who its customers 

were, and then obtain each of their 

signatures. To avoid this burdensome 

process, SpaceX instead requested a 

partial waiver from the FAA of § 440.17. 

Thereafter, both SpaceX and Orbital 

Sciences, Corp. have requested partial 

waivers for missions in which NASA 

was a customer.8 Since October 2012, 

the FAA has published three partial 

waivers to part 440 requirements in the 

Federal Register, and has issued three 

letters of waiver. Issuing a waiver is 

costly and time-consuming to the FAA, 

while requesting a waiver is costly and 

time-consuming for industry. 

II. Overview of Proposed Rule 

This NRPM proposes to revise part 

440 in the following ways: (1) Amend 

§ 440.17 to state the reciprocal waiver of 

claims requirements; (2) amend § 440.17 

and appendices B and C so that 

customers of any customer contracting 

directly with a licensee or permittee 

would not have to sign a waiver directly 

with the licensee or permittee, other 

customers, or the FAA; (3) amend 

appendices B and C of part 440 so that 

customers would waive claims, as 

required by statute, against all the 

customers involved in the launch or 

reentry, including those signing a 

different set of reciprocal waivers; (4) 

amend § 440.3 to add a definition of 

‘‘first-tier customer’’ and ‘‘part 440 

customer’’; and (5) add an appendix to 

provide licensees with an example of a 

Waiver of Claims and Assumption of 

Responsibility for Permitted Activities 

with No Customer. 

These changes would result in cost 

savings to the licensee, government and 

customers and minimal cost to any 

customer in a direct contractual 

relationship with the licensee or 


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9This requirement would be new to both the 

regulatory text and the appendices and is discussed 

in detail in Section B of this preamble. 

10See 63 FR at 45607. 

11See 61 FR at 39012. 

permittee if it has customers to the 

launch. 

III. Discussion of the Proposal 

A. Amend § 440.17 To State the 

Reciprocal Waiver of Claims 

Requirements 

The FAA proposes to amend § 440.17 

to describe the requirements for the 

reciprocal waiver of claims agreement. 

Currently, those requirements are 

detailed in part 440 appendices, but are 

not all reflected in § 440.17. This 

proposed change would locate the crosswaiver requirements in the regulatory 

text rather than just the appendices. 

Section 440.17(c) would describe the 

requirements for each party to the 

reciprocal waiver of claims, to the 

extent provided in appendices B and C, 

to (i) waive and release claims for its 

property damage and its employees’ 

bodily injury or property damage; (ii) 

assume responsibility for its property 

damage and its employees’ bodily injury 

or property damage; (iii) extend its 

assumption of responsibility and waiver 

and release of claims to its contractors 

and subcontractors, and customers in 

the case of a first-tier customer; 9 and 

(iv) hold harmless and indemnify each 

other party from bodily injury or 

property damage sustained by its 

employees. Sections 440.17(d) and (e) 

would require each party to the 

reciprocal waiver of claims, to the 

extent described in appendices D and E, 

to (i) waive and release claims for bodily 

injury or property damage; (ii) assume 

responsibility for bodily injury or 

property damage; and (iii) hold 

harmless and indemnify the United 

States and its agencies, servants, agents, 

subsidiaries, employees and assignees 

against claims for property damage or 

bodily injury. 

Section 440.17 does not currently 

detail the reciprocal waiver of claims 

requirements in full. Rather, the section 

currently uses appendices, as 

incorporated through sub-sections, to 

detail the scope of the reciprocal waiver 

of claims. At the same time, subsection 

(c) currently qualifies the use of 

appendices with the additional clause 

‘‘or in a form that satisfies the 

requirements.’’ The FAA believes that 

this qualification could lead to 

uncertain expectations for launch 

participants because the appendices are 

more comprehensive than what § 440.17 

contains. Section 440.17 only includes 

general references to requirements such 

as assumption of responsibility, hold 

harmless, and indemnification clauses. 

To address this deficiency, the FAA 

proposes that § 440.17 list the specific 

requirements that should be included in 

the reciprocal waiver of claims 

agreement. This proposed change would 

serve to locate the requirements in one 

place within the regulation for clarity 

and ease of use. 

B. Amend § 440.17 and Appendices B 

and C so That Only First-Tier Customers 

Sign the Statutorily Mandated Waiver of 

Claims, and Amend § 440.3 To Define 

‘‘First-Tier Customer’’ and ‘‘Part 440 

Customer’’ 

This rulemaking would amend the 

part 440 requirement describing which 

entities are required to sign the 

statutorily-mandated waiver of claims. 

Specifically, this rulemaking would no 

longer require a first-tier customer’s 

customer to sign reciprocal waivers with 

the licensee and the Government, and 

would require that a first-tier customer 

obtain its customers’ agreement but 

indemnify the other parties for any 

failure to properly apply the 

requirements of the waiver to its 

customers. The FAA proposes defining 

first-tier customer as a customer as 

defined in § 440.3 who has a contractual 

relationship with the licensee or 

permittee to obtain launch or reentry 

services. In other words, a first-tier 

customer would be one who met the 

FAA’s regulatory definition of a 

customer, and was in a contractual 

relationship with the licensee. The FAA 

proposes defining part 440 customer as 

a customer defined by § 440.3 of the 

Regulations, other than a first-tier 

customer. The FAA would add these 

definitions because they are a concise 

way to differentiate between a customer 

who is a direct contractual relationship 

with the licensee or permittee, and a 

customer who is not. The FAA would 

also revise the wording in the definition 

of contractors and subcontractors 

throughout the appendices, for greater 

specificity. 

The FAA will discuss the proposed 

requirements in the following order: (1) 

First-tier customers would flow down 

the reciprocal waiver requirements to 

their customers; and (2) first-tier 

customers would indemnify other 

parties against claims brought by their 

customers. 

The FAA would revise § 440.17(c) to 

require each first-tier customer to apply 

the requirements of § 440.17 to each of 

its customers, and would amend 

appendices B and C to reflect this 

requirement. Currently, part 440 

requires all customers, as defined by 

§ 440.3, to sign reciprocal waivers with 

the licensee and the U.S. Government, 

even those not contracting directly with 

a licensee or permittee. This rulemaking 

would relieve licensees or permittees of 

having to obtain signatures of their part 

440 customers, i.e., any customer who is 

not contracting directly with the 

licensee or permittee. The FAA 

proposes to use its current practice of 

requiring that launch participants 

extend reciprocal waiver requirements 

to their contractors and subcontractors 

as a model. A first-tier customer 

currently extends the reciprocal waiver 

provisions to its contractors and 

subcontractors. The FAA proposes 

similarly requiring a first-tier customer 

to extend the reciprocal waiver 

provisions to its customers, assuming its 

customers are not also first-tier 

customers. Consistent with current 

practice, the agency leaves 

implementation of these provisions to 

the licensee or permittee and does not 

intend to monitor compliance with the 

requirement to extend the reciprocal 

waiver provisions.10 The 

indemnification, discussed later in this 

section, provides its own incentives. 

The result of requiring first-tier 

customers to extend the FAA reciprocal 

waiver requirements to their own 

customers, would be that the licensee or 

permittee would only be responsible for 

signing reciprocal waivers with 

customers with whom it is in a direct 

contractual relationship. The FAA notes 

that the Commercial Space Launch Act 

specifies that the reciprocal waivers of 

claims requirement applies only to 

customers involved in launch or reentry 

services. 51 U.S.C. 50914(b). Thus, part 

440 customers are limited to customers 

involved in launch or reentry services. 

As the FAA has stated previously, ‘‘[t]he 

term ‘‘customer’’ does not include the 

ultimate beneficiary of the payload 

services, as opposed to launch services, 

because doing so could theoretically 

include any person who uses a 

television or makes a long-distance 

telephone call, and goes beyond the 

intended scope of the Act.’’ 11

The FAA offers three examples to 

illustrate the effects of this proposed 

change. First, this proposed change 

would not affect launches in which a 

licensee or permittee contracted directly 

with all its customers. For example, if 

Licensee Launcher was launching a 

payload owned by ToyCo, then Licensee 

Launcher, ToyCo and the FAA would 

sign the part 440 reciprocal waivers. 

This straightforward scenario is what 

the FAA contemplated when it 

originally drafted part 440. 

In the second example, involving a 

hosted payload situation, if Licensee 


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12The FAA, through delegation from the 

Department of Transportation, is required by 51 

U.S.C. 50914(b)(2) to make reciprocal waiver of 

claims for the Government. 

13 Financial Responsibility Requirements for 

Licensed Launch Activities, Final Rule, 63 FR 

45592, 45601 (Aug. 26, 1998). 

14See Financial Responsibility Requirement for 

Licensed Launch Activities Proposed Rule, 61 FR at 

39012. 

15 Financial Responsibility Requirements for 

Licensed Launch Activities, Notice of Proposed 

Rulemaking, 61 FR 38992, 39012 (July 25, 1996). 

16See 76 FR 8629 at 8630. 

Launcher was launching a payload 

provided by LockerCo that included 

property owned by WatchCo and 

CologneCo, under the current rules, 

Licensee Launcher, LockerCo, WatchCo, 

and CologneCo would be required to 

sign the reciprocal waivers with the 

FAA. In this scenario, Licensee 

Launcher contracted with LockerCo for 

the launch, and LockerCo contracted 

with WatchCo and CologneCo. Even 

though Licensee Launcher had no 

contractual relationship with any of the 

customers other than LockerCo, he is 

still required to obtain signatures for all 

the customers of the launch to comply 

with part 440. This proposed rule would 

allow Licensee Launcher to sign a 

reciprocal waiver with only LockerCo 

and the FAA. LockerCo would then be 

required to flow down the reciprocal 

waiver requirements to its customers: 

WatchCo and CologneCo. LockerCo 

would be free to choose the method by 

which it extended these requirements 

down, so long as the end effect was that 

LockerCo’s customers waived all claims 

they would have waived had they 

signed the original waiver with Licensee 

Launcher and the FAA. 

The third example involves a hosted 

payload with a U.S. Government 

customer. If Licensee Launcher were 

launching a payload provided by NASA 

that included cubesats owned by South 

University, North University, and Jane 

Doe, under the current rules Licensee 

Launcher, South University, North 

University, Jane Doe, and the FAA 

would be required to sign reciprocal 

waivers. In this scenario, Licensee 

Launcher contracted with NASA for the 

launch, and NASA contracted with 

South University, North University, and 

Jane Doe. Besides NASA, Licensee 

Launcher had no contractual 

relationship with any of the customers. 

However, as in the examples above, 

Licensee Launcher is currently required 

to obtain signatures from all the 

customers of the launch to comply with 

part 440. This proposed rule would 

allow Licensee Launcher to sign a 

reciprocal waiver with only the FAA. 

The FAA would sign on behalf of the 

U.S. Government,12 which would 

include NASA, even though NASA is 

also a customer. Under part 440, NASA, 

as a Government customer, currently 

already accepts responsibility for 

property damage to its payload.13 Under 

the proposed amendments, NASA 

would be required to extend the 

reciprocal waiver requirements to its 

customers: South University, North 

University, and Jane Doe. NASA would 

be free to choose the method by which 

it extended these requirements down, as 

long as the end effect was that NASA’s 

customers waived all claims they would 

have waived had they signed the 

original waiver with Licensee Launcher 

and the FAA. 

The proposal to require a first-tier 

customer to extend the reciprocal 

waiver requirements does not conflict 

with previous positions the FAA has 

taken on this issue. In its 2011 

Technical Amendment, the FAA stated 

that ‘‘a plain language reading of the 

[Commercial Space Launch Act] makes 

it clear that Congress intended the 

government to enter into a reciprocal 

waiver of claims with all customers.’’ 

This proposal is consistent with what 

the FAA has stated before, even though 

the FAA would only require customers 

contracting directly with the licensee or 

permittee to sign with the Government 

and the licensee or permittee. The intent 

of the statute would be preserved 

because first-tier customers would 

extend the part 440 requirements to any 

customers they had that met the 

definition of customer in § 440.3. Thus, 

customers who did not sign with the 

Government and the licensee, but who 

still met the FAA’s definition of 

customer, would waive claims against 

all the relevant parties, namely the 

Government, the licensee or permittee, 

all other part 440 customers, and the 

relevant parties’ contractors. In this 

way, the protections Congress intended 

the statute to afford would be preserved 

even though the result would be that all 

customers would no longer have to sign 

directly with the Government and the 

licensee or permittee. As the FAA 

contemplated, in cases with more than 

one customer’s payload on the manifest 

for a single launch, executing separate 

but appropriately modified agreements 

to ensure that all parties are protected 

would satisfy the statute’s mandate. 14

All customers would still have to enter 

into a waiver of claims agreement; 

however, the licensee or permittee 

would no longer be responsible for 

obtaining a part 440 customer’s 

signature on its reciprocal waiver with 

the FAA. 

The FAA also modeled its proposal 

regarding indemnification on the 

current practice for contractors and 

subcontractors. In the context of a party 

requiring its contractors and 

subcontractors to agree to abide by the 

requirements of part 440, the FAA has 

stated previously that indemnification 

provides a strong incentive for parties to 

correctly extend reciprocal waiver 

requirements. This incentive provides a 

remedy for parties who sustain loss due 

to another party’s failure to extend the 

reciprocal waiver requirements.15 The 

FAA would apply the same reasoning to 

customers of a first-tier customer. Each 

customer would be required to 

indemnify the Government, the licensee 

or permittee, and any other customer 

not its own, against claims brought by 

its contractors, subcontractors, and 

customers that are not also in a direct 

contractual relationship with the 

licensee or permittee. 

This proposal similarly does not 

conflict with the 2011 Technical 

Amendment, where the FAA stated that 

in no case was any one customer 

required to indemnify against claims 

brought by another customer, or to 

extend the reciprocal waiver of claims 

to other customers. At that time, the 

FAA was not contemplating a scenario 

in which a customer’s customer would 

have a payload on the launch manifest, 

but would not be in a direct contractual 

relationship with the licensee or 

permittee. Instead, in 2011 the FAA 

meant only to clarify that unrelated 

customers could not waive claims on 

behalf of each other. The FAA 

envisioned a scenario in which the 

licensee or permittee itself contracted 

with various customers. In such a 

scenario, each customer would sign the 

reciprocal waiver of claims and could 

not sign for any other customer, or 

indemnify other signatories to the 

waiver of claims against a non-signing 

customers’ claims. 

Although the FAA removed language 

stating that a customer must provide 

indemnification on behalf of another 

customer,16 the intent was to clarify that 

a customer could not sign on behalf of 

another customer and indemnify a 

signatory to the reciprocal waiver 

against that customer’s claim in a 

scenario where the signing customer 

was not in a relationship with the nonsigning customer. The effect of allowing 

a customer to sign on behalf of a 

different customer it has no relationship 

with and indemnify against that 

customer’s claims is the non-signing 

customer effectively receives the 

benefits of the reciprocal waiver of 

claims without the obligations. 


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In contrast, this proposal would 

require not only that a customer in a 

contractual relationship with the 

licensee or permittee extend the cross 

waiver requirements to its customers, 

but also that it indemnify the other 

parties against claims brought by its 

own customers. In this scenario, all 

customers would be aware of the claims 

they were waiving, and, if a customer 

failed to extend the reciprocal waiver 

requirements, it would be required to 

indemnify. Therefore, it would be in a 

customer’s best interests to correctly 

extend the reciprocal waiver 

requirements so that its customers 

would not bring claims against the other 

parties. To accomplish this, the FAA 

would recommend using the forms 

provided in part 440 appendices B and 

C. 

C. Amend Appendices B and C of Part 

440 so That Customers of Any Customer 

Contracting Directly With a Licensee or 

Permittee Would Not Have To Sign a 

Waiver Directly With the Licensee or 

Permittee, Other Customers, or the FAA 

The FAA proposes requiring that 

customers waive claims against all other 

customers involved in a launch or 

reentry. This change would obviate 

launch participants re-signing reciprocal 

waivers if a new customer was added 

close to the launch date. 

The FAA proposes amending the 

waivers of claims agreements in 

appendices B and C so that customers 

waive claims, as required by the statute, 

against all the customers involved in the 

launch or reentry, including those 

signing a different set of reciprocal 

waivers. In the 2011 Technical 

Amendment, the FAA inadvertently 

removed from the definition of 

‘‘customer’’ in appendices B and C the 

phrase ‘‘and any person described in 

§ 440.3 of the Regulations.’’ By 

removing this phrase, it became unclear 

that the customer signing the waiver 

with the licensee or permittee and the 

FAA was waiving any claims it had 

against all other customers. 

Correcting this omission is important 

in order to ease the administrative 

burden on the FAA, customers, 

licensees, and permittees in instances 

where a new customer is added to a 

launch only a short time before the 

scheduled launch date. As the rule 

currently stands, all of the parties 

involved would need to re-sign the 

original waiver of claims because the 

protection only extends to those 

customers who have signed the specific 

waiver. This could be an onerous 

process were there to be many entities 

as customers for a single launch. The 

proposed amendment would clarify that 

a signing customer waived any claims 

against all other customers currently or 

to be involved in a launch, and would 

allow a customer who was added at the 

last minute to sign a new and separate 

waiver of claims with the FAA and the 

licensee or permittee, while still 

waiving claims against any other 

customers who have signed a separate 

waiver of claims. This correction should 

not be construed to allow a customer to 

sign an indemnification agreement on 

behalf of another customer. Each 

customer in a contractual relationship 

with the licensee or permittee would 

still sign a waiver of claims on its own 

behalf. 

Although it may look contradictory to 

include the clause ‘‘and any other 

customer as defined by 14 CFR 440.3’’ 

in the reciprocal waiver with one 

customer found in appendices B and C, 

the clause is necessary to meet the 

intent of allowing a last-minute 

customer to sign a new and separate 

waiver of claims with the FAA and the 

licensee or permittee, while also 

waiving claims against any customers 

on a launch who have signed a previous 

waiver of claims. Reciprocal waiver of 

claims with one customer found in 

appendices B and C would be used 

when one customer signed, and 

reciprocal waiver of claims with 

multiple customers found in appendices 

B and C would be used when multiple 

customers signed the same reciprocal 

waiver. 

For example, Licensee Launcher is 

conducting a launch, and has one 

customer (WatchCo). WatchCo signs the 

‘‘Waiver of Claims and Assumption of 

Responsibility for Licensed Launch, 

Including Suborbital Launch, With One 

Customer,’’ located in appendix B to 

part 440, with the FAA and Licensee 

Launcher. Two months later, Licensee 

Launcher acquires customer CologneCo. 

CologneCo is not a customer of 

WatchCo. Licensee Launcher now has 

two customers for its launch. Under the 

proposed rule, CologneCo would sign 

reciprocal waivers with Licensee 

Launcher and the FAA, but it would not 

need to sign with WatchCo because 

WatchCo waived and released claims it 

may have against any other customers as 

defined by § 440.3 and their contractors 

and subcontractors. 

Thus, a licensee with multiple 

customers for a launch or reentry may 

sign one cross-waiver with multiple 

customers, or may sign multiple crosswaivers with each individual customer. 

Under the proposed rule, the outcome 

would be the same. 

D. Add an Appendix for Waiver of 

Claims and Assumption of 

Responsibility for Permitted Activities 

With No Customer 

Finally, this rulemaking would add a 

waiver of claims to appendix C that 

accounts for scenarios in which a 

permitted activity does not involve any 

customer. Permitted activities are 

launches or reentries of a reusable 

suborbital rocket for the purpose of 

research and development, 

demonstrating compliance with 

requirements in order to obtain a 

license, or crew training, and often do 

not involve a customer. Permittees may 

not receive compensation for carrying 

any property or human being. 51 U.S.C. 

50906(h). Accordingly, although the 

FAA contemplated nonpaying 

customers, permittees may regularly 

conduct launches without any 

customer. 

Currently, when a permittee plans to 

conduct permitted activities without 

any customer, the FAA and permittee 

modify the existing waivers of claims 

forms in appendix C in order to create 

a two-party agreement between the U.S. 

Government and the permittee. The 

FAA permits No. EP 07–003 issued to 

Armadillo Aerospace, L.P. in 2007, No. 

EP 12–007 issued to Scaled Composites 

in 2012, and No. EP 12–008 issued to 

SpaceX in 2012 all involved such a 

modified waiver of claims. This process 

led to additional coordination between 

the FAA and the permittees, and the 

permittees typically sought 

confirmation from the FAA that the 

modified waiver of claims agreement 

complied with part 440. With the 

addition of a separate waiver of claims 

template in appendix C for permitted 

activities with no customer, the FAA 

would be able to provide a uniform and 

compliant waiver of claims that would 

make the permitting process more 

efficient. 

IV. Regulatory Notices and Analyses 

A. Regulatory Evaluation 

Changes to Federal regulations must 

undergo several economic analyses. 

First, Executive Order 12866 and 

Executive Order 13563 direct that each 

Federal agency shall propose or adopt a 

regulation only upon a reasoned 

determination that the benefits of the 

intended regulation justify its costs. 

Second, the Regulatory Flexibility Act 

of 1980 (Pub. L. 96–354) requires 

agencies to analyze the economic 

impact of regulatory changes on small 

entities. Third, the Trade Agreements 

Act (Pub. L. 96–39) prohibits agencies 

from setting standards that create 

unnecessary obstacles to the foreign 


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commerce of the United States. In 

developing U.S. standards, this Trade 

Act requires agencies to consider 

international standards and, where 

appropriate, that they be the basis of 

U.S. standards. Fourth, the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4) requires agencies to prepare a 

written assessment of the costs, benefits, 

and other effects of proposed or final 

rules that include a Federal mandate 

likely to result in the expenditure by 

State, local, or tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more annually (adjusted 

for inflation with base year of 1995). 

This portion of the preamble 

summarizes the FAA’s analysis of the 

economic impacts of this proposed rule. 

We suggest readers seeking greater 

detail read the full regulatory 

evaluation, a copy of which we have 

placed in the docket for this rulemaking. 

In conducting these analyses, FAA 

has determined that this proposed rule: 

(1) Has benefits that justify its costs, (2) 

is not an economically ‘‘significant 

regulatory action’’ as defined in section 

3(f) of Executive Order 12866, (3) is not 

‘‘significant’’ as defined in DOT’s 

Regulatory Policies and Procedures; (4) 

would not have a significant economic 

impact on a substantial number of small 

entities; (5) would not create 

unnecessary obstacles to the foreign 

commerce of the United States; and (6) 

would not impose an unfunded 

mandate on State, local, or tribal 

governments, or on the private sector by 

exceeding the threshold identified 

above. These analyses are summarized 

below. 

Total Benefits and Costs of This Rule 

These changes would result in cost 

savings to the licensee, government and 

customers and minimal cost to the firsttier customer if it has customers to the 

launch. 

Cost savings are presented in the table 

below, which are discussed in more 

detail in the paragraphs that follow. 

Minor Rounding Occurs in Summation 

The proposal might result in minimal 

costs to first-tier customers who would 

be responsible for implementing crosswaivers with their customers. 

Who is potentially affected by this rule? 

Launch Licensees and Permittees 

Federal Government 

Customers of the Launch Licensees and 

Permittees 

Assumptions: 

The following assumptions apply to 

the analysis. 

• Ten year time horizon 

• 2013 dollars 

• Without the rule FAA would issue 4 

partial waivers to the reciprocal cross 

waiver requirement per year 

• Without the rule the licensee would 

have to obtain some signatures from 

sub-tier customers on launches unless 

waivers have been issued. 

Benefits of This Rule 

The proposal would result in cost 

savings because licensees would no 

longer have to obtain signatures of subtier customers on the cross-waiver. Cost 

savings may result because licensees 

would not have to incur expenses to 

obtain sub-tier signatures or licensees 

would not seek waivers from the FAA 

to the requirement that sub-tier 

customers sign the cross-waiver. The 

estimated cost savings to the licensee 

and the Federal Government that would 

result were indicated in the table above. 

Also, the FAA estimated a small cost 

savings due to the proposal to allow a 

customer added at the last minute to 

sign a new and separate waiver of 

claims agreement. 

Finally, the FAA expects minimal 

cost savings with the proposed addition 

of a template for permitted activities 

with no customer. 

Costs of This Rule 

The responsibility to obtain signatures 

of customers who are not in a direct 

contractual relationship (i.e. sub-tier 

customers) with the licensee would shift 

under the proposal, from the licensee to 

the appropriate first-tier customer. The 

FAA expects the costs the first-tier 

customer would incur under the rule to 

implement the cross-waiver would be 

minimal because the first-tier customer 

could modify the templates provided in 

Appendices B and C to part 440 and add 

it to the contract that it has with its 

customers. In addition, customers are 

currently required to extend the FAA 

cross-waiver obligations to their 

respective contractors and 

subcontractors. The FAA thinks that 

this would be a one-time cost that could 

be accomplished in a short period of 

time by the company’s in-house 

lawyers. 

B. Regulatory Flexibility Determination 

The Regulatory Flexibility Act of 1980 

(Pub. L. 96–354) (RFA) establishes ‘‘as a 

principle of regulatory issuance that 

agencies shall endeavor, consistent with 

the objectives of the rule and of 

applicable statutes, to fit regulatory and 

informational requirements to the scale 

of the businesses, organizations, and 

governmental jurisdictions subject to 

regulation. To achieve this principle, 

agencies are required to solicit and 

consider flexible regulatory proposals 

and to explain the rationale for their 

actions to assure that such proposals are 

given serious consideration.’’ The RFA 

covers a wide-range of small entities, 

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profit organizations, and small 

governmental jurisdictions. 

Agencies must perform a review to 

determine whether a rule will have a 

significant economic impact on a 

substantial number of small entities. If 

the agency determines that it will, the 

agency must prepare a regulatory 

flexibility analysis as described in the 

RFA. 

However, if an agency determines that 

a rule is not expected to have a 

significant economic impact on a 

substantial number of small entities, 

section 605(b) of the RFA provides that 

the head of the agency may so certify 

and a regulatory flexibility analysis is 

not required. The certification must 

include a statement providing the 

factual basis for this determination, and 

the reasoning should be clear. 

The FAA believes that this proposed 

rule would not have a significant impact 

on a substantial number of entities 

because the rule would result in cost 

savings and some minimal costs as 

described below. 

Cost savings are expected because the 

licensee would no longer have to 

request waivers or obtain sub-tier 

signatures, nor have to obtain signatures 

if a party is added to the launch at the 

last minute. However, there might be 

minimal costs to first-tier customers. 

The responsibility to obtain signatures 

of customers who are not in a direct 

contractual relationship (i.e., sub-tier 

customers) with the licensee would shift 

under the proposal, from the licensee to 

the appropriate first-tier customer. This 

would be a new requirement on the 

first-tier customer. 

Under the proposal, the first-tier 

customer would be responsible, as 

described above, to implement the 

cross-waiver with their customers. 

These costs would be minimal because 

the first-tier customer could modify the 

templates provided in Appendices B 

and C to part 440 and add it to the 

contract that it has with its customers. 

The FAA thinks that this would be a 

one-time cost that could be 

accomplished in a short period of time 

by the company’s in-house lawyers at an 

estimated cost of $185. 

It is not clear whether this minimal 

cost would impact a substantial number 

of small entities. To date, the only 

entities that the FAA is aware of 

currently that fly hosted payloads are 

NASA and the Air Force. We do not 

know whether in the future there might 

be small entities which would have to 

implement a cross-waiver with their 

customers, but even if there were a 

substantial number of small entities, the 

proposal would not have a significant 

impact on these entities. 

Therefore, as provided in section 

605(b), the head of the FAA certifies 

that this rulemaking will not result in a 

significant economic impact on a 

substantial number of small entities. 

The FAA solicits comments regarding 

this determination. 

C. International Trade Impact 

Assessment 

The Trade Agreements Act of 1979 

(Pub. L. 96–39), as amended by the 

Uruguay Round Agreements Act (Pub. 

L. 103–465), prohibits Federal agencies 

from establishing standards or engaging 

in related activities that create 

unnecessary obstacles to the foreign 

commerce of the United States. 

Pursuant to these Acts, the 

establishment of standards is not 

considered an unnecessary obstacle to 

the foreign commerce of the United 

States, so long as the standard has a 

legitimate domestic objective, such as 

the protection of safety, and does not 

operate in a manner that excludes 

imports that meet this objective. The 

statute also requires consideration of 

international standards and, where 

appropriate, that they be the basis for 

U.S. standards. The FAA has assessed 

the potential effect of this proposed rule 

and determined that it would impose 

the same costs on domestic and 

international entities and thus has a 

neutral trade impact. 

D. Unfunded Mandates Assessment 

Title II of the Unfunded Mandates 

Reform Act of 1995 (Pub. L. 104–4) 

requires each Federal agency to prepare 

a written statement assessing the effects 

of any Federal mandate in a proposed or 

final agency rule that may result in an 

expenditure of $100 million or more (in 

1995 dollars) in any one year by State, 

local, and tribal governments, in the 

aggregate, or by the private sector; such 

a mandate is deemed to be a ‘‘significant 

regulatory action.’’ The FAA currently 

uses an inflation-adjusted value of 

$151.0 million in lieu of $100 million. 

This proposed rule does not contain 

such a mandate; therefore, the 

requirements of Title II of the Act do not 

apply. 

E. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3507(d)) requires that the 

FAA consider the impact of paperwork 

and other information collection 

burdens imposed on the public. The 

FAA has determined that there would 

be no new requirement for information 

collection associated with this proposed 

rule. 

F. International Compatibility and 

Cooperation 

In keeping with U.S. obligations 

under the Convention on International 

Civil Aviation, it is FAA policy to 

conform to International Civil Aviation 

Organization (ICAO) Standards and 

Recommended Practices to the 

maximum extent practicable. The FAA 

has determined that there are no ICAO 

Standards and Recommended Practices 

that correspond to these proposed 

regulations. 

G. Environmental Analysis 

FAA Order 1050.1E identifies FAA 

actions that are categorically excluded 

from preparation of an environmental 

assessment or environmental impact 

statement under the National 

Environmental Policy Act in the 

absence of extraordinary circumstances. 

The FAA has determined this 

rulemaking action qualifies for the 

categorical exclusion identified in 

paragraph 312f and involves no 

extraordinary circumstances. 

V. Executive Order Determinations 

A. Executive Order 12866 

See the ‘‘Regulatory Evaluation’’ 

discussion in the ‘‘Regulatory Notices 

and Analyses’’ section elsewhere in this 

preamble. 

B. Executive Order 13132, Federalism 

The FAA has analyzed this proposed 

rule under the principles and criteria of 

Executive Order 13132, Federalism. The 

agency has determined that this action 

would not have a substantial direct 

effect on the States, or the relationship 

between the Federal Government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government, and, 

therefore, would not have Federalism 

implications. 

C. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA analyzed this proposed rule 

under Executive Order 13211, Actions 

Concerning Regulations that 

Significantly Affect Energy Supply, 

Distribution, or Use (May 18, 2001). The 

agency has determined that it would not 

be a ‘‘significant energy action’’ under 

the executive order and would not be 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. 

VI. Additional Information 

A. Comments Invited 

The FAA invites interested persons to 

participate in this rulemaking by 


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submitting written comments, data, or 

views. The agency also invites 

comments relating to the economic, 

environmental, energy, or federalism 

impacts that might result from adopting 

the proposals in this document. The 

most helpful comments reference a 

specific portion of the proposal, explain 

the reason for any recommended 

change, and include supporting data. To 

ensure the docket does not contain 

duplicate comments, commenters 

should send only one copy of written 

comments, or if comments are filed 

electronically, commenters should 

submit only one time. 

The FAA will file in the docket all 

comments it receives, as well as a report 

summarizing each substantive public 

contact with FAA personnel concerning 

this proposed rulemaking. Before acting 

on this proposal, the FAA will consider 

all comments it receives on or before the 

closing date for comments. The FAA 

will consider comments filed after the 

comment period has closed if it is 

possible to do so without incurring 

expense or delay. The agency may 

change this proposal in light of the 

comments it receives. 

B. Availability of Rulemaking 

Documents 

An electronic copy of rulemaking 

documents may be obtained from the 

Internet by— 

1. Searching the Federal eRulemaking 

Portal (http://www.regulations.gov); 

2. Visiting the FAA’s Regulations and 

Policies Web page at http://

www.faa.gov/regulations_policies or 

3. Accessing the Government Printing 

Office’s Web page at http://

www.gpo.gov/fdsys/. 

Copies may also be obtained by 

sending a request to the Federal 

Aviation Administration, Office of 

Rulemaking, ARM–1, 800 Independence 

Avenue SW., Washington, DC 20591, or 

by calling (202) 267–9680. Commenters 

must identify the docket or notice 

number of this rulemaking. 

All documents the FAA considered in 

developing this proposed rule, 

including economic analyses and 

technical reports, may be accessed from 

the Internet through the Federal 

eRulemaking Portal referenced in item 

(1) above. 

List of Subjects in 14 CFR Part 440 

Indemnity payments, Insurance, 

Reporting and recordkeeping 

requirements, Space transportation and 

exploration. 

The Amendments 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend chapter III of title 14, 

Code of Federal Regulations as follows: 

PART 440—FINANCIAL 

RESPONSIBILITY 

■ 1. The authority citation for part 440 

continues to read as follows: 

Authority: 51 U.S.C. 50901–50923. 

■ 2. Amend § 440.3 to add the definition 

of first-tier customer and part 440 

customer in alphabetical order to read 

as follows: 

§ 440.3 Definitions. 

* * * * * 

First-tier customer means a customer 

as defined in this section, and who has 

a contractual relationship with a license 

or permit holder to obtain launch or 

reentry services. 

* * * * * 

Part 440 customer means a customer 

as defined in this section, other than a 

first-tier customer. 

* * * * * 

■ 3. Revise § 440.17 to read as follows: 

§ 440.17 Reciprocal waiver of claims 

requirements. 

(a) As a condition of each license or 

permit, the licensee or permittee must 

comply with the reciprocal waiver of 

claims requirements of this section. 

(b) The licensee or permittee must 

implement a reciprocal waiver of claims 

with each of its contractors and 

subcontractors, each first-tier customer 

and each of the first-tier customer’s 

contractors and subcontractors, under 

which each party waives and releases 

claims against all the other parties to the 

waiver and against any other customer, 

and agrees to assume financial 

responsibility for property damage it 

sustains and for bodily injury or 

property damage sustained by its own 

employees, and to hold harmless and 

indemnify each other from bodily injury 

or property damage sustained by its 

employees, resulting from a licensed or 

permitted activity, regardless of fault. 

(c) For each licensed or permitted 

activity in which the U.S. Government, 

any agency, or its contractors and 

subcontractors is involved or where 

property insurance is required under 

section 440.9(d), the Federal Aviation 

Administration of the Department of 

Transportation, the licensee or 

permittee, and each first-tier customer 

must enter into a reciprocal waiver of 

claims agreement. The reciprocal waiver 

of claims must be in the form set forth 

in Appendix B of this part for licensed 

activity, in Appendix C of this part for 

permitted activity, or in a form that 

otherwise provides all the same 

obligations and benefits. The reciprocal 

waiver of claims must provide that: 

(1) Each party, including the United 

States but only to the extent provided in 

legislation: 

(i) Waives and releases claims it may 

have against each other party, any 

customer, and against their respective 

contractors and subcontractors, for 

property damage it sustains and for 

bodily injury or property damage 

sustained by its own employees, 

resulting from licensed activities, 

regardless of fault; 

(ii) Assumes responsibility for 

property damage it sustains and for 

bodily injury or property damage 

sustained by its own employees, 

resulting from licensed activities, 

regardless of fault. Licensee and firsttier customer shall each hold harmless 

and indemnify each other, the United 

States, any other customer, and the 

contractors and subcontractors of each 

for bodily injury or property damage 

sustained by its own employees, 

resulting from Licensed Activities, 

regardless of fault; and 

(iii) Extends the requirements of the 

waiver and release of claims, and the 

assumption of responsibility, hold 

harmless, and indemnification, to its 

contractors and subcontractors and, for 

first-tier customer its customers, by 

requiring them to waive and release all 

claims they may have against: 

(A) For the contractors and 

subcontractors of the licensee or 

permittee, all claims against any 

customer, the United States, and each of 

their respective contractors and 

subcontractors, and to agree to be 

responsible, for property damage they 

sustain and to be responsible, hold 

harmless and indemnify any customer, 

the United States, and each of their 

respective contractors and 

subcontractors, for bodily injury or 

property damage sustained by their own 

employees, resulting from licensed 

activities, regardless of fault; 

(B) For the contractors and 

subcontractors of first-tier customer, all 

claims against the licensee or permittee, 

any other customer, the United States, 

and each of their respective contractors 

and subcontractors, and to agree to be 

responsible, for property damage they 

sustain and to be responsible, hold 

harmless and indemnify the licensee or 

permittee, any other customer, the 

United States, and each of their 

respective contractors and 

subcontractors, for bodily injury or 

property damage sustained by their own 

employees, resulting from licensed 

activities, regardless of fault; 

(C) For the contractors and 

subcontractors of the United States, all 


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claims against the licensee or permittee, 

any customer, and each of their 

respective contractors and 

subcontractors, and to agree to be 

responsible, for property damage they 

sustain and to be responsible, hold 

harmless and indemnify the licensee or 

permittee, any other customer, the 

United States, and each of their 

respective contractors and 

subcontractors, for bodily injury or 

property damage sustained by their own 

employees, resulting from licensed 

activities, regardless of fault to the 

extent that claims they would otherwise 

have for such damage or injury exceed 

the amount of insurance or 

demonstration of financial 

responsibility required under sections 

440.9(c) and (e) of this part; and 

(2) For the following parties— 

(i) The licensee or permittee must 

hold harmless and indemnify each firsttier customer and its directors, officers, 

servants, agents, subsidiaries, 

employees and assignees, or any of 

them; the United States and its agencies, 

servants, agents, subsidiaries, 

employees and assignees, or any of 

them; and any part 440 customer and its 

directors, officers, servants, agents, 

subsidiaries, employees and assignees, 

or any of them from and against 

liability, loss or damage arising out of 

claims that any of licensee’s or 

permittee’s contractors and 

subcontractors may have for property 

damage sustained by them and for 

bodily injury or property damage 

sustained by their employees, resulting 

from licensed or permitted activities. 

The requirement of (c)(2)(i) of this 

section to hold harmless and indemnify 

the United States and its agencies, 

servants, agents, subsidiaries, 

employees and assignees, or any of 

them, does not apply when: 

(A) Claims result from willful 

misconduct of the United States or its 

agents; 

(B) Claims for property damage 

sustained by the United States or its 

contractors and subcontractors exceed 

the amount of insurance or 

demonstration of financial 

responsibility required under section 

440.9(e) of this part; 

(C) Claims by a third party for bodily 

injury or property damage exceed the 

amount of insurance or demonstration 

of financial responsibility required 

under section 440.9(c) of this part, and 

do not exceed $1,500,000,000 (as 

adjusted for inflation after January 1, 

1989) above such amount, and are 

payable pursuant to the provisions of 51 

U.S.C. 50915 and section 440.19 of this 

part; or 

(D) Licensee or permittee has no 

liability for claims exceeding 

$1,500,000,000 (as adjusted for inflation 

after January 1, 1989) above the amount 

of insurance or demonstration of 

financial responsibility required under 

section 440.9(c) of this part. 

(ii) Each first-tier customer must hold 

harmless and indemnify the licensee or 

permitee and its directors, officers, 

servants, agents, subsidiaries, 

employees and assignees, or any of 

them; the United States and its agencies, 

servants, agents, subsidiaries, 

employees and assignees, or any of 

them; and any part 440 customer and its 

directors, officers, servants, agents, 

subsidiaries, employees and assignees, 

or any of them, from and against 

liability, loss or damage arising out of 

claims that any of first-tier customer’s 

contractors, subcontractors, or 

customers may have for property 

damage sustained by them and for 

bodily injury or property damage 

sustained by their employees, resulting 

from licensed or permitted activities. 

(iii) The Federal Aviation 

Administration of the Department of 

Transportation on behalf of the United 

States and its agencies, but only to the 

extent provided in legislation, must 

hold harmless and indemnify the 

licensee or permitee, each first-tier 

customer, any part 440 customer, and 

their respective directors, officers, 

servants, agents, subsidiaries, 

employees and assignees, or any of 

them, from and against liability, loss or 

damage arising out of claims that 

contractors and subcontractors of the 

United States may have for property 

damage sustained by them and for 

bodily injury or property damage 

sustained by their employees, resulting 

from licensed or permitted activities to 

the extent that claims they would 

otherwise have for such damage or 

injury exceed the amount of insurance 

or demonstration of financial 

responsibility required under section 

440.9(c) and (e) of this part. 

(d) For each licensed or permitted 

activity in which the U.S. Government, 

any of its agencies, or its contractors and 

subcontractors are involved, the Federal 

Aviation Administration of the 

Department of Transportation and each 

space flight participant must enter into 

or have in place a reciprocal waiver of 

claims agreement. The reciprocal waiver 

of claims must be in the form set forth 

in Appendix E, or in a form that 

otherwise provides all the same 

obligations and benefits. 

(1) The reciprocal waiver of claims 

must provide that each space flight 

participant: 

(i) Waive and release claims he or she 

may have against the United States, and 

against each of its contractors and 

subcontractors, for bodily injury, 

including death, or property damage 

sustained by space flight participant, 

resulting from licensed or permitted 

activities, regardless of fault; 

(ii) Assume responsibility for bodily 

injury, including death, or property 

damage, sustained by space flight 

participant, resulting from licensed or 

permitted activities, regardless of fault; 

(iii) Hold harmless the United States, 

and its contractors and subcontractors, 

for bodily injury, including death, or 

property damage, sustained by space 

flight participant, resulting from 

licensed or permitted activities, 

regardless of fault; 

(iv) Hold harmless and indemnify the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and 

against liability, loss, or damage arising 

out of claims brought by anyone for 

property damage or bodily injury, 

including death, sustained by space 

flight participant, resulting from 

licensed or permitted activities; and 

(v) Hold harmless the United States 

and its agencies, servants, agents, 

employees and assignees, or any of 

them, from and against liability, loss or 

damage arising out of claims for bodily 

injury, including death, or property 

damage, sustained by space flight 

participant, resulting from licensed or 

permitted activities, regardless of fault, 

except to the extent that claims result 

from willful misconduct of the United 

States or its agents. 

(2) The reciprocal waiver of claims 

must provide that the United States: 

(i) Waive and release claims it may 

have against space flight participant for 

property damage it sustains, and for 

bodily injury, including death, or 

property damage sustained by its own 

employees, resulting from licensed or 

permitted activities, regardless of fault; 

(ii) Assume responsibility for property 

damage it sustains, and for bodily 

injury, including death, or property 

damage sustained by its own employees, 

resulting from licensed activities, 

regardless of fault, to the extent that 

claims it would otherwise have for such 

damage or injury exceed the amount of 

insurance or demonstration of financial 

responsibility required under sections 

440.9(c) and (e), respectively, of this 

part; 

(iii) Assume responsibility for 

property damage it sustains, resulting 

from permitted activities, regardless of 

fault, to the extent that claims it would 

otherwise have for such damage exceed 

the amount of insurance or 


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demonstration of financial 

responsibility required under section 

440.9(e) of this part; 

(iv) Extend the requirements of the 

waiver and release of claims, and the 

assumption of responsibility to its 

contractors and subcontractors by 

requiring them to waive and release all 

claims they may have against space 

flight participant, and to agree to be 

responsible, for any property damage 

they sustain and for any bodily injury, 

including death, or property damage 

sustained by their own employees, 

resulting from licensed activities, 

regardless of fault; and 

(v) Extend the requirements of the 

waiver and release of claims, and the 

assumption of responsibility to its 

contractors and subcontractors by 

requiring them to waive and release all 

claims they may have against space 

flight participant, and to agree to be 

responsible, for any property damage 

they sustain, resulting from permitted 

activities, regardless of fault. 

(e) For each licensed or permitted 

activity in which the U.S. Government, 

any of its agencies, or its contractors and 

subcontractors is involved, the Federal 

Aviation Administration of the 

Department of Transportation and each 

crew member must enter into or have in 

place a reciprocal waiver of claims 

agreement. The reciprocal waiver of 

claims must be in the form set forth in 

appendix D, or in a form that otherwise 

provides all the same obligations and 

benefits. 

(1) The reciprocal waiver of claims 

must provide that each crew member: 

(i) Waive and release claims he or she 

may have against the United States, and 

against each of its contractors and 

subcontractors, for bodily injury, 

including death, or property damage 

sustained by crew member, resulting 

from licensed or permitted activities, 

regardless of fault; 

(ii) Assume responsibility for bodily 

injury, including death, or property 

damage, sustained by crew member, 

resulting from licensed or permitted 

activities, regardless of fault; 

(iii) Hold harmless the United States, 

and its contractors and subcontractors, 

for bodily injury, including death, or 

property damage, sustained by crew 

member, resulting from licensed or 

permitted activities, regardless of fault; 

(iv) Hold harmless and indemnify the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and 

against liability, loss, or damage arising 

out of claims brought by anyone for 

property damage or bodily injury, 

including death, sustained by crew 

member, resulting from licensed or 

permitted activities; and 

(v) Hold harmless the United States 

and its agencies, servants, agents, 

employees and assignees, or any of 

them, from and against liability, loss or 

damage arising out of claims for bodily 

injury, including death, or property 

damage, sustained by crew member, 

resulting from licensed or permitted 

activities, regardless of fault, except to 

the extent that claims result from willful 

misconduct of the United States or its 

agents. 

(2) The reciprocal waiver of claims 

must provide that the United States: 

(i) Waive and release claims it may 

have against the crew member for 

property damage it sustains, and for 

bodily injury, including death, or 

property damage sustained by its own 

employees, resulting from licensed or 

permitted activities, regardless of fault; 

(ii) Assume responsibility for property 

damage it sustains, and for bodily 

injury, including death, or property 

damage sustained by its own employees, 

resulting from licensed activities, 

regardless of fault, to the extent that 

claims it would otherwise have for such 

damage or injury exceed the amount of 

insurance or demonstration of financial 

responsibility required under sections 

440.9(c) and (e), respectively, of this 

part; 

(iii) Assume responsibility for 

property damage it sustains, resulting 

from permitted activities, regardless of 

fault, to the extent that claims it would 

otherwise have for such damage exceed 

the amount of insurance or 

demonstration of financial 

responsibility required under section 

440.9(e) of this part; 

(iv) Extend the requirements of the 

waiver and release of claims, and the 

assumption of responsibility to its 

contractors and subcontractors by 

requiring them to waive and release all 

claims they may have against crew 

member and to agree to be responsible, 

for any property damage they sustain 

and for any bodily injury, including 

death, or property damage sustained by 

their own employees, resulting from 

licensed activities, regardless of fault; 

and 

(v) Extend the requirements of the 

waiver and release of claims, and the 

assumption of responsibility to its 

contractors and subcontractors by 

requiring them to waive and release all 

claims they may have against crew 

member and to agree to be responsible, 

for any property damage they sustain, 

resulting from permitted activities, 

regardless of fault. 

■ 4. Revise Appendix B to part 440 to 

read as follows: 

Appendix B to Part 440—Agreement for 

Waiver of Claims and Assumption of 

Responsibility for Licensed Activities 

Part 1—Waiver of Claims and Assumption of 

Responsibility for Licensed Launch, 

Including Suborbital Launch 

Subpart A—Waiver of Claims and 

Assumption of Responsibility for Licensed 

Launch, Including Suborbital Launch, With 

One Customer 

This agreement is entered into this ll 

day of ll, by and among [Licensee] (the 

‘‘Licensee’’), [Customer] (the ‘‘Customer’’) 

and the Federal Aviation Administration of 

the Department of Transportation, on behalf 

of the United States Government 

(collectively, the ‘‘Parties’’), to implement the 

provisions of section 440.17(c) of the 

Commercial Space Transportation Licensing 

Regulations, 14 CFR Ch. III (the 

‘‘Regulations’’). This agreement applies to the 

launch of [Payload] payload on a [Launch 

Vehicle] vehicle at [Location of Launch Site]. 

In consideration of the mutual releases and 

promises contained herein, the Parties hereby 

agree as follows: 

1. Definitions 

Contractors and Subcontractors means 

entities defined by § 440.3 of the Regulations. 

Customer means the above-named 

Customer. 

Part 440 customer means a customer 

defined by § 440.3 of the Regulations, other 

than the above-named Customer. 

License means License No. lll issued 

on lll, by the Associate Administrator for 

Commercial Space Transportation, Federal 

Aviation Administration, Department of 

Transportation, to the Licensee, including all 

license orders issued in connection with the 

License. 

Licensee means the Licensee and any 

transferee of the Licensee under 51 U.S.C. 

Subtitle V, ch. 509. 

United States means the United States and 

its agencies involved in Licensed Activities. 

Except as otherwise defined herein, terms 

used in this Agreement and defined in 51 

U.S.C. Subtitle V, ch. 509—Commercial 

Space Launch Activities, or in the 

Regulations, shall have the same meaning as 

contained in 51 U.S.C. Subtitle V, ch. 509, or 

the Regulations, respectively. 

2. Waiver and Release of Claims 

(a) Licensee hereby waives and releases 

claims it may have against Customer, the 

United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(b) Customer hereby waives and releases 

claims it may have against Licensee, the 

United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(c) The United States hereby waives and 

releases claims it may have against Licensee, 


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Customer, any part 440 customer, and each 

of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains, and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault, to the extent that claims it would 

otherwise have for such damage or injury 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

3. Assumption of Responsibility 

(a) Licensee and Customer shall each be 

responsible for Property Damage it sustains 

and for Bodily Injury or Property Damage 

sustained by its own employees, resulting 

from Licensed Activities, regardless of fault. 

Licensee and Customer shall each hold 

harmless and indemnify each other, the 

United States, any part 440 customer, and the 

Contractors and Subcontractors of each, for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Licensed Activities, regardless of fault. 

(b) The United States shall be responsible 

for Property Damage it sustains, and for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Licensed Activities, regardless of fault, to the 

extent that claims it would otherwise have 

for such damage or injury exceed the amount 

of insurance or demonstration of financial 

responsibility required under sections 

440.9(c) and (e), respectively, of the 

Regulations. 

4. Extension of Assumption of Responsibility 

and Waiver and Release of Claims 

(a) Licensee shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(a) and 3(a), respectively, to its 

Contractors and Subcontractors by requiring 

them to waive and release all claims they 

may have against Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Customer, the United States, 

any part 440 customer, and each of their 

respective Contractors and Subcontractors, 

for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Licensed Activities, regardless of fault. 

(b) Customer shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(b) and 3(a), respectively, to its 

customers, Contractors, and Subcontractors, 

by requiring them to waive and release all 

claims they may have against Licensee, the 

United States, and part 440 customers, and 

each of their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Licensee, the United States, 

and part 440 customers, and each of their 

respective Contractors and Subcontractors for 

Bodily Injury or Property Damage sustained 

by their own employees, resulting from 

Licensed Activities, regardless of fault. 

(c) The United States shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), 

respectively, to its Contractors and 

Subcontractors by requiring them to waive 

and release all claims they may have against 

Licensee, Customer, any part 440 customer, 

and each of their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for any Property Damage they 

sustain and for any Bodily Injury or Property 

Damage sustained by their own employees, 

resulting from Licensed Activities, regardless 

of fault, to the extent that claims they would 

otherwise have for such damage or injury 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

5. Indemnification 

(a) Licensee shall hold harmless and 

indemnify Customer and its directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them; the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them; and any part 440 

customer and its directors, officers, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and against 

liability, loss or damage arising out of claims 

that Licensee’s Contractors and 

Subcontractors may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Licensed 

Activities. 

(b) Customer shall hold harmless and 

indemnify Licensee and its directors, officers, 

servants, agents, subsidiaries, employees and 

assignees, or any of them; the United States 

and its agencies, servants, agents, 

subsidiaries, employees and assignees, or any 

of them; and any part 440 customer and its 

directors, officers, servants, agents, 

subsidiaries, employees and assignees, or any 

of them, from and against liability, loss or 

damage arising out of claims that Customer’s 

Contractors, Subcontractors, or customers, 

may have for Property Damage sustained by 

them and for Bodily Injury or Property 

Damage sustained by their employees, 

resulting from Licensed Activities. 

(c) To the extent provided in advance in an 

appropriations law or to the extent there is 

enacted additional legislative authority 

providing for the payment of claims, the 

United States shall hold harmless and 

indemnify Licensee, Customer, any part 440 

customer, and their respective directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims that Contractors and 

Subcontractors of the United States may have 

for Property Damage sustained by them, and 

for Bodily Injury or Property Damage 

sustained by their employees, resulting from 

Licensed Activities, to the extent that claims 

they would otherwise have for such damage 

or injury exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

6. Assurances Under 51 U.S.C. 50914(e) 

Notwithstanding any provision of this 

Agreement to the contrary, Licensee shall 

hold harmless and indemnify the United 

States and its agencies, servants, agents, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims for Bodily Injury or 

Property Damage, resulting from Licensed 

Activities, regardless of fault, except to the 

extent that: (i) As provided in section 7(b) of 

this Agreement, claims result from willful 

misconduct of the United States or its agents; 

(ii) claims for Property Damage sustained by 

the United States or its Contractors and 

Subcontractors exceed the amount of 

insurance or demonstration of financial 

responsibility required under section 440.9(e) 

of the Regulations; (iii) claims by a Third 

Party for Bodily Injury or Property Damage 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under section 440.9(c) of the 

Regulations, and do not exceed 

$1,500,000,000 (as adjusted for inflation after 

January 1, 1989) above such amount, and are 

payable pursuant to the provisions of 51 

U.S.C. 50915 and section 440.19 of the 

Regulations; or (iv) Licensee has no liability 

for claims exceeding $1,500,000,000 (as 

adjusted for inflation after January 1, 1989) 

above the amount of insurance or 

demonstration of financial responsibility 

required under section 440.9(c) of the 

Regulations. 

7. Miscellaneous 

(a) Nothing contained herein shall be 

construed as a waiver or release by Licensee, 

Customer or the United States of any claim 

by an employee of the Licensee, Customer or 

the United States, respectively, including a 

member of the Armed Forces of the United 

States, for Bodily Injury or Property Damage, 

resulting from Licensed Activities. 

(b) Notwithstanding any provision of this 

Agreement to the contrary, any waiver, 

release, assumption of responsibility or 

agreement to hold harmless and indemnify 

herein shall not apply to claims for Bodily 

Injury or Property Damage resulting from 

willful misconduct of any of the Parties, the 

Contractors and Subcontractors of any of the 

Parties, any part 440 customer, the 

Contractors and Subcontractors of any part 

440 customer, and in the case of Licensee, 

Customer, any part 440 customer, and the 

Contractors and Subcontractors of each of 

them, the directors, officers, agents and 

employees of any of the foregoing, and in the 

case of the United States, its agents. 

(c) This Agreement shall be governed by 

and construed in accordance with United 

States Federal law. 

In witness whereof, the Parties to this 

Agreement have caused the Agreement to be 

duly executed by their respective duly 

authorized representatives as of the date 

written above. 

Licensee 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Customer 

By: lllllllllllllllllll

Its: lllllllllllllllllll


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Federal Aviation Administration of the 

Department of Transportation on Behalf of 

the United States Government 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Associate Administrator for Commercial 

Space Transportation 

Subpart B—Waiver of Claims and 

Assumption of Responsibility for Licensed 

Launch, Including Suborbital Launch, With 

More Than One Customer 

This agreement is entered into this l day 

of lll, by and among [Licensee] (the 

‘‘Licensee’’); [List of Customers]; (with [List 

of Customers] hereinafter referred to in their 

individual capacity as ‘‘Customer’’); and the 

Federal Aviation Administration of the 

Department of Transportation, on behalf of 

the United States Government (collectively, 

the ‘‘Parties’’), to implement the provisions of 

section 440.17(c) of the Commercial Space 

Transportation Licensing Regulations, 14 

CFR Ch. III (the ‘‘Regulations’’). This 

agreement applies to the launch of [Payload] 

payload on a [Launch Vehicle] vehicle at 

[Location of Launch Site]. 

In consideration of the mutual releases and 

promises contained herein, the Parties hereby 

agree as follows: 

1. Definitions 

Contractors and Subcontractors means 

entities defined by § 440.3 of the Regulations. 

Customer means each above-named 

Customer. 

Part 440 customer means a customer 

defined by § 440.3 of the Regulations, other 

than the above-named Customer. 

License means License No. l issued on l

ll, by the Associate Administrator for 

Commercial Space Transportation, Federal 

Aviation Administration, Department of 

Transportation, to the Licensee, including all 

license orders issued in connection with the 

License. 

Licensee means the Licensee and any 

transferee of the Licensee under 51 U.S.C. 

Subtitle V, ch. 509. 

United States means the United States and 

its agencies involved in Licensed Activities. 

Except as otherwise defined herein, terms 

used in this Agreement and defined in 51 

U.S.C. Subtitle V, ch. 509—Commercial 

Space Launch Activities, or in the 

Regulations, shall have the same meaning as 

contained in 51 U.S.C. Subtitle V, ch. 509, or 

the Regulations, respectively. 

2. Waiver and Release of Claims 

(a) Licensee hereby waives and releases 

claims it may have against each Customer, 

the United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(b) Each Customer hereby waives and 

releases claims it may have against Licensee, 

the United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(c) The United States hereby waives and 

releases claims it may have against Licensee, 

each Customer, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains, and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault, to the extent that claims it would 

otherwise have for such damage or injury 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

3. Assumption of Responsibility 

(a) Licensee and each Customer shall each 

be responsible for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. Licensee and each Customer shall 

each hold harmless and indemnify each 

other, the United States, any part 440 

customer, and the Contractors and 

Subcontractors of each, for Bodily Injury or 

Property Damage sustained by its own 

employees, resulting from Licensed 

Activities, regardless of fault. 

(b) The United States shall be responsible 

for Property Damage it sustains, and for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Licensed Activities, regardless of fault, to the 

extent that claims it would otherwise have 

for such damage or injury exceed the amount 

of insurance or demonstration of financial 

responsibility required under sections 

440.9(c) and (e), respectively, of the 

Regulations. 

4. Extension of Assumption of Responsibility 

and Waiver and Release of Claims 

(a) Licensee shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(a) and 3(a), respectively, to its 

Contractors and Subcontractors by requiring 

them to waive and release all claims they 

may have against each Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify each Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, for Bodily Injury or Property 

Damage sustained by their own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(b) Each Customer shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility, 

hold harmless, and indemnification, as set 

forth in paragraphs 2(b) and 3(a), 

respectively, to its customers, Contractors, 

and Subcontractors, by requiring them to 

waive and release all claims they may have 

against Licensee, the United States, and part 

440 customers, and each of their respective 

Contractors and Subcontractors, and to agree 

to be responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Licensee, the United States, 

and part 440 customers, and each of their 

respective Contractors and Subcontractors, 

for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Licensed Activities, regardless of fault. 

(c) The United States shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), 

respectively, to its Contractors and 

Subcontractors by requiring them to waive 

and release all claims they may have against 

Licensee, each Customer, any part 440 

customer, and each of their respective 

Contractors and Subcontractors, and to agree 

to be responsible, for any Property Damage 

they sustain and for any Bodily Injury or 

Property Damage sustained by their own 

employees, resulting from Licensed 

Activities, regardless of fault, to the extent 

that claims they would otherwise have for 

such damage or injury exceed the amount of 

insurance or demonstration of financial 

responsibility required under sections 

440.9(c) and (e), respectively, of the 

Regulations. 

5. Indemnification 

(a) Licensee shall hold harmless and 

indemnify each Customer and its directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them; the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them; and any part 440 

customer and its directors, officers, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and against 

liability, loss or damage arising out of claims 

that Licensee’s Contractors and 

Subcontractors may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Licensed 

Activities. 

(b) Each Customer shall hold harmless and 

indemnify Licensee and its directors, officers, 

servants, agents, subsidiaries, employees and 

assignees, or any of them; the United States 

and its agencies, servants, agents, 

subsidiaries, employees and assignees, or any 

of them; and any part 440 customer and its 

directors, officers, servants, agents, 

subsidiaries, employees and assignees, or any 

of them, from and against liability, loss or 

damage arising out of claims that each 

Customer’s Contractors, Subcontractors, or 

customers, may have for Property Damage 

sustained by them and for Bodily Injury or 

Property Damage sustained by their 

employees, resulting from Licensed 

Activities. 

(c) To the extent provided in advance in an 

appropriations law or to the extent there is 

enacted additional legislative authority 

providing for the payment of claims, the 

United States shall hold harmless and 

indemnify Licensee, each Customer, any part 

440 customer, and their respective directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims that Contractors and 

Subcontractors of the United States may have 

for Property Damage sustained by them, and 


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for Bodily Injury or Property Damage 

sustained by their employees, resulting from 

Licensed Activities, to the extent that claims 

they would otherwise have for such damage 

or injury exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

6. Assurances Under 51 U.S.C. 50914(e) 

Notwithstanding any provision of this 

Agreement to the contrary, Licensee shall 

hold harmless and indemnify the United 

States and its agencies, servants, agents, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims for Bodily Injury or 

Property Damage, resulting from Licensed 

Activities, regardless of fault, except to the 

extent that: (i) As provided in section 7(b) of 

this Agreement, claims result from willful 

misconduct of the United States or its agents; 

(ii) claims for Property Damage sustained by 

the United States or its Contractors and 

Subcontractors exceed the amount of 

insurance or demonstration of financial 

responsibility required under section 440.9(e) 

of the Regulations; (iii) claims by a Third 

Party for Bodily Injury or Property Damage 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under section 440.9(c) of the 

Regulations, and do not exceed 

$1,500,000,000 (as adjusted for inflation after 

January 1, 1989) above such amount, and are 

payable pursuant to the provisions of 51 

U.S.C. 50915 and section 440.19 of the 

Regulations; or (iv) Licensee has no liability 

for claims exceeding $1,500,000,000 (as 

adjusted for inflation after January 1, 1989) 

above the amount of insurance or 

demonstration of financial responsibility 

required under section 440.9(c) of the 

Regulations. 

7. Miscellaneous 

(a) Nothing contained herein shall be 

construed as a waiver or release by Licensee, 

any Customer or the United States of any 

claim by an employee of the Licensee, any 

Customer or the United States, respectively, 

including a member of the Armed Forces of 

the United States, for Bodily Injury or 

Property Damage, resulting from Licensed 

Activities. 

(b) Notwithstanding any provision of this 

Agreement to the contrary, any waiver, 

release, assumption of responsibility or 

agreement to hold harmless and indemnify 

herein shall not apply to claims for Bodily 

Injury or Property Damage resulting from 

willful misconduct of any of the Parties, the 

Contractors and Subcontractors of any of the 

Parties, any part 440 customer, the 

Contractors and Subcontractors of any part 

440 customer, and in the case of Licensee, 

each Customer, any part 440 customer, and 

the Contractors and Subcontractors of each of 

them, the directors, officers, agents and 

employees of any of the foregoing, and in the 

case of the United States, its agents. 

(c) References herein to Customer shall 

apply to, and be deemed to include, each 

such customer severally and not jointly. 

(d) This Agreement shall be governed by 

and construed in accordance with United 

States Federal law. 

In witness whereof, the Parties to this 

Agreement have caused the Agreement to be 

duly executed by their respective duly 

authorized representatives as of the date 

written above. 

Licensee 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Customer 1 

By: lllllllllllllllllll

Its: lllllllllllllllllll

[Signature lines for each additional customer] 

Federal Aviation Administration of the 

Department of Transportation on Behalf of 

the United States Government 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Associate Administrator for Commercial 

Space Transportation 

Part 2—Waiver of Claims and Assumption of 

Responsibility for Licensed Reentry 

Subpart A—Waiver of Claims and 

Assumption of Responsibility for Licensed 

Reentry With One Customer 

This Agreement is entered into this l day 

of lll, by and among [Licensee] (the 

‘‘Licensee’’), [Customer] (the ‘‘Customer’’), 

and the Federal Aviation Administration of 

the Department of Transportation, on behalf 

of the United States Government 

(collectively, the ‘‘Parties’’), to implement the 

provisions of § 440.17(c) of the Commercial 

Space Transportation Licensing Regulations, 

14 CFR Ch. III (the ‘‘Regulations’’). This 

agreement applies to the reentry of the 

[Payload] payload on a [Reentry Vehicle] 

vehicle. 

In consideration of the mutual releases and 

promises contained herein, the Parties hereby 

agree as follows: 

1. Definitions 

Contractors and Subcontractors means 

entities defined by § 440.3 of the Regulations. 

Customer means the above-named 

Customer. 

Part 440 Customer means a customer 

defined by § 440.3 of the Regulations, other 

than the above named Customer. 

License means License No. l issued on l

ll, by the Associate Administrator for 

Commercial Space Transportation, Federal 

Aviation Administration, Department of 

Transportation, to the Licensee, including all 

license orders issued in connection with the 

License. 

Licensee means the Licensee and any 

transferee of the Licensee under 51 U.S.C. 

Subtitle V, ch. 509. 

United States means the United States and 

its agencies involved in Licensed Activities. 

Except as otherwise defined herein, terms 

used in this Agreement and defined in 51 

U.S.C. Subtitle V, ch. 509—Commercial 

Space Launch Activities, or in the 

Regulations, shall have the same meaning as 

contained in 51 U.S.C. Subtitle V, ch. 509, or 

the Regulations, respectively. 

2. Waiver and Release of Claims 

(a) Licensee hereby waives and releases 

claims it may have against Customer, the 

United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(b) Customer hereby waives and releases 

claims it may have against Licensee, the 

United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(c) The United States hereby waives and 

releases claims it may have against Licensee, 

Customer, any part 440 customer, and each 

of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains, and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault, to the extent that claims it would 

otherwise have for such damage or injury 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

3. Assumption of Responsibility 

(a) Licensee and Customer shall each be 

responsible for Property Damage it sustains 

and for Bodily Injury or Property Damage 

sustained by its own employees, resulting 

from Licensed Activities, regardless of fault. 

Licensee and Customer shall each hold 

harmless and indemnify each other, the 

United States, any part 440 customer, and the 

Contractors and Subcontractors of each, for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Licensed Activities, regardless of fault. 

(b) The United States shall be responsible 

for Property Damage it sustains, and for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Licensed Activities, regardless of fault, to the 

extent that claims it would otherwise have 

for such damage or injury exceed the amount 

of insurance or demonstration of financial 

responsibility required under §§ 440.9(c) and 

(e) of the Regulations. 

4. Extension of Assumption of Responsibility 

and Waiver and Release of Claims 

(a) Licensee shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(a) and 3(a), respectively, to its 

Contractors and Subcontractors by requiring 

them to waive and release all claims they 

may have against Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Customer, the United States, 

any part 440 customer, and each of their 

respective Contractors and Subcontractors, 

for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Licensed Activities, regardless of fault. 

(b) Customer shall extend the requirements 

of the waiver and release of claims, and the 


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assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(b) and 3(a), respectively, to its 

customers, Contractors, and Subcontractors, 

by requiring them to waive and release all 

claims they may have against Licensee, the 

United States, and part 440 customers, and 

each of their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Licensee, the United States, 

and part 440 customers, and each of their 

respective Contractors and Subcontractors, 

for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Licensed Activities, regardless of fault. 

(c) The United States shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), 

respectively, to its Contractors and 

Subcontractors by requiring them to waive 

and release all claims they may have against 

Licensee, Customer, any part 440 customer, 

and each of their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for any Property Damage they 

sustain and for any Bodily Injury or Property 

Damage sustained by their own employees, 

resulting from Licensed Activities, regardless 

of fault, to the extent that claims they would 

otherwise have for such damage or injury 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

5. Indemnification 

(a) Licensee shall hold harmless and 

indemnify Customer and its directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them; the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them; and any part 440 

customer and its directors, officers, servants, 

agents, subsidiaries, employees and 

assignees, or any of them from and against 

liability, loss or damage arising out of claims 

that Licensee’s Contractors and 

Subcontractors may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Licensed 

Activities. 

(b) Customer shall hold harmless and 

indemnify Licensee and its directors, officers, 

servants, agents, subsidiaries, employees and 

assignees, or any of them; the United States 

and its agencies, servants, agents, 

subsidiaries, employees and assignees, or any 

of them; and any part 440 customer and its 

directors, officers, servants, agents, 

subsidiaries, employees and assignees, or any 

of them from and against liability, loss or 

damage arising out of claims that Customer’s 

Contractors, Subcontractors, or customers, 

may have for Property Damage sustained by 

them and for Bodily Injury or Property 

Damage sustained by their employees, 

resulting from Licensed Activities. 

(c) To the extent provided in advance in an 

appropriations law or to the extent there is 

enacted additional legislative authority 

providing for the payment of claims, the 

United States shall hold harmless and 

indemnify Licensee, Customer, any part 440 

customer, and their respective directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims that Contractors and 

Subcontractors of the United States may have 

for Property Damage sustained by them, and 

for Bodily Injury or Property Damage 

sustained by their employees, resulting from 

Licensed Activities, to the extent that claims 

they would otherwise have for such damage 

or injury exceed the amount of insurance or 

demonstration of financial responsibility 

required under §§ 440.9(c) and (e) of the 

Regulations. 

6. Assurances Under 51 U.S.C. 50914(e) 

Notwithstanding any provision of this 

Agreement to the contrary, Licensee shall 

hold harmless and indemnify the United 

States and its agencies, servants, agents, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims for Bodily Injury or 

Property Damage, resulting from Licensed 

Activities, regardless of fault, except to the 

extent that: (i) As provided in section 7(b) of 

this Agreement, claims result from willful 

misconduct of the United States or its agents; 

(ii) claims for Property Damage sustained by 

the United States or its Contractors and 

Subcontractors exceed the amount of 

insurance or demonstration of financial 

responsibility required under § 440.9(e) of 

the Regulations; (iii) claims by a Third Party 

for Bodily Injury or Property Damage exceed 

the amount of insurance or demonstration of 

financial responsibility required under 

§ 440.9(c) of the Regulations, and do not 

exceed $1,500,000,000 (as adjusted for 

inflation after January 1, 1989) above such 

amount, and are payable pursuant to the 

provisions of 51 U.S.C. 50915 and § 440.19 of 

the Regulations; or (iv) Licensee has no 

liability for claims exceeding $1,500,000,000 

(as adjusted for inflation after January 1, 

1989) above the amount of insurance or 

demonstration of financial responsibility 

required under § 440.9(c) of the Regulations. 

7. Miscellaneous 

(a) Nothing contained herein shall be 

construed as a waiver or release by Licensee, 

Customer or the United States of any claim 

by an employee of the Licensee, Customer or 

the United States, respectively, including a 

member of the Armed Forces of the United 

States, for Bodily Injury or Property Damage, 

resulting from Licensed Activities. 

(b) Notwithstanding any provision of this 

Agreement to the contrary, any waiver, 

release, assumption of responsibility or 

agreement to hold harmless and indemnify 

herein shall not apply to claims for Bodily 

Injury or Property Damage resulting from 

willful misconduct of any of the Parties, the 

Contractors and Subcontractors of any of the 

Parties, any part 440 customer, the 

Contractors and Subcontractors of any part 

440 customer, and in the case of Licensee, 

Customer, any part 440 customer, and the 

Contractors and Subcontractors of each of 

them, the directors, officers, agents and 

employees of any of the foregoing, and in the 

case of the United States, its agents. 

(c) This Agreement shall be governed by 

and construed in accordance with United 

States Federal law. 

In Witness Whereof, the Parties to this 

Agreement have caused the Agreement to be 

duly executed by their respective duly 

authorized representatives as of the date 

written above. 

Licensee 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Customer 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Federal Aviation Administration of the 

Department of Transportation on Behalf of 

the United States Government 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Associate Administrator for Commercial 

Space Transportation 

Subpart B—Waiver of Claims and 

Assumption of Responsibility for Licensed 

Reentry With More Than One Customer 

This agreement is entered into this __day 

of ___, by and among [Licensee] (the 

‘‘Licensee’’); [List of Customers] (with [List of 

Customers] hereinafter referred to in their 

individual capacity as ‘‘Customer’’); and the 

Federal Aviation Administration of the 

Department of Transportation, on behalf of 

the United States Government (collectively, 

the ‘‘Parties’’), to implement the provisions of 

section 440.17(c) of the Commercial Space 

Transportation Licensing Regulations, 14 

CFR Ch. III (the ‘‘Regulations’’). This 

agreement applies to the reentry of [Payload] 

payload on a [Reentry Vehicle] vehicle. 

In consideration of the mutual releases and 

promises contained herein, the Parties hereby 

agree as follows: 

1. Definitions 

Contractors and Subcontractors means 

entities described in § 440.3 of the 

Regulations. 

Customer means each above-named 

Customer. 

Part 440 customer means a customer 

defined by § 440.3 of the Regulations, other 

than the above-named customer. 

License means License No. __issued 

on ___, by the Associate Administrator for 

Commercial Space Transportation, Federal 

Aviation Administration, Department of 

Transportation, to the Licensee, including all 

license orders issued in connection with the 

License. 

Licensee means the Licensee and any 

transferee of the Licensee under 51 U.S.C. 

Subtitle V, ch. 509. 

United States means the United States and 

its agencies involved in Licensed Activities. 

Except as otherwise defined herein, terms 

used in this Agreement and defined in 51 

U.S.C. Subtitle V, ch. 509—Commercial 

Space Launch Activities, or in the 

Regulations, shall have the same meaning as 

contained in 51 U.S.C. Subtitle V, ch. 509, or 

the Regulations, respectively. 

2. Waiver and Release of Claims 

(a) Licensee hereby waives and releases 

claims it may have against each Customer, 


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the United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(b) Each Customer hereby waives and 

releases claims it may have against Licensee, 

the United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(c) The United States hereby waives and 

releases claims it may have against Licensee, 

each Customer, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains, and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault, to the extent that claims it would 

otherwise have for such damage or injury 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under § 440.9(c) and (e), 

respectively, of the Regulations. 

3. Assumption of Responsibility 

(a) Licensee and each Customer shall each 

be responsible for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Licensed Activities, regardless 

of fault. Licensee and each Customer shall 

each hold harmless and indemnify each 

other, the United States, any part 440 

customer, and the Contractors and 

Subcontractors of each, for Bodily Injury or 

Property Damage sustained by its own 

employees, resulting from Licensed 

Activities, regardless of fault. 

(b) The United States shall be responsible 

for Property Damage it sustains, and for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Licensed Activities, regardless of fault, to the 

extent that claims it would otherwise have 

for such damage or injury exceed the amount 

of insurance or demonstration of financial 

responsibility required under sections 

440.9(c) and (e), respectively, of the 

Regulations. 

4. Extension of Assumption of Responsibility 

and Waiver and Release of Claims 

(a) Licensee shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(a) and 3(a), respectively, to its 

Contractors and Subcontractors by requiring 

them to waive and release all claims they 

may have against each Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify each Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, for Bodily Injury or Property 

Damage sustained by their own employees, 

resulting from Licensed Activities, regardless 

of fault. 

(b) Each Customer shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility, 

hold harmless, and indemnification, as set 

forth in paragraphs 2(b) and 3(a), 

respectively, to its customers, Contractors, 

and Subcontractors, by requiring them to 

waive and release all claims they may have 

against Licensee, the United States, and part 

440 customers, and each of their respective 

Contractors and Subcontractors, and to agree 

to be responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Licensee, the United States, 

and part 440 customers, and each of their 

respective Contractors and Subcontractors, 

for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Licensed Activities, regardless of fault. 

(c) The United States shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), 

respectively, to its Contractors and 

Subcontractors by requiring them to waive 

and release all claims they may have against 

Licensee, each Customer, any part 440 

customer, and each of their respective 

Contractors and Subcontractors, and to agree 

to be responsible, for any Property Damage 

they sustain and for any Bodily Injury or 

Property Damage sustained by their own 

employees, resulting from Licensed 

Activities, regardless of fault, to the extent 

that claims they would otherwise have for 

such damage or injury exceed the amount of 

insurance or demonstration of financial 

responsibility required under sections 

440.9(c) and (e), respectively, of the 

Regulations. 

5. Indemnification 

(a) Licensee shall hold harmless and 

indemnify each Customer and its directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them; the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them; and any part 440 

customer and its directors, officers, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and against 

liability, loss or damage arising out of claims 

that Licensee’s Contractors and 

Subcontractors may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Licensed 

Activities. 

(b) Each Customer shall hold harmless and 

indemnify Licensee and its directors, officers, 

servants, agents, subsidiaries, employees and 

assignees, or any of them; and the United 

States and its agencies, servants, agents, 

subsidiaries, employees and assignees, or any 

of them; and any part 440 customer and its 

directors, officers, servants, agents, 

subsidiaries, employees and assignees, or any 

of them, from and against liability, loss or 

damage arising out of claims that each 

Customer’s Contractors, Subcontractors, or 

customers, may have for Property Damage 

sustained by them and for Bodily Injury or 

Property Damage sustained by their 

employees, resulting from Licensed 

Activities. 

(c) To the extent provided in advance in an 

appropriations law or to the extent there is 

enacted additional legislative authority 

providing for the payment of claims, the 

United States shall hold harmless and 

indemnify Licensee, each Customer, any part 

440 customer, and their respective directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims that Contractors and 

Subcontractors of the United States may have 

for Property Damage sustained by them, and 

for Bodily Injury or Property Damage 

sustained by their employees, resulting from 

Licensed Activities, to the extent that claims 

they would otherwise have for such damage 

or injury exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

6. Assurances Under 51 U.S.C. 50914(e) 

Notwithstanding any provision of this 

Agreement to the contrary, Licensee shall 

hold harmless and indemnify the United 

States and its agencies, servants, agents, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims for Bodily Injury or 

Property Damage, resulting from Licensed 

Activities, regardless of fault, except to the 

extent that: (i) As provided in section 7(b) of 

this Agreement, claims result from willful 

misconduct of the United States or its agents; 

(ii) claims for Property Damage sustained by 

the United States or its Contractors and 

Subcontractors exceed the amount of 

insurance or demonstration of financial 

responsibility required under section 440.9(e) 

of the Regulations; (iii) claims by a Third 

Party for Bodily Injury or Property Damage 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under section 440.9(c) of the 

Regulations, and do not exceed 

$1,500,000,000 (as adjusted for inflation after 

January 1, 1989) above such amount, and are 

payable pursuant to the provisions of 51 

U.S.C. 50915 and section 440.19 of the 

Regulations; or (iv) Licensee has no liability 

for claims exceeding $1,500,000,000 (as 

adjusted for inflation after January 1, 1989) 

above the amount of insurance or 

demonstration of financial responsibility 

required under section 440.9(c) of the 

Regulations. 

7. Miscellaneous 

(a) Nothing contained herein shall be 

construed as a waiver or release by Licensee, 

any Customer or the United States of any 

claim by an employee of the Licensee, any 

Customer or the United States, respectively, 

including a member of the Armed Forces of 

the United States, for Bodily Injury or 

Property Damage, resulting from Licensed 

Activities. 

(b) Notwithstanding any provision of this 

Agreement to the contrary, any waiver, 

release, assumption of responsibility or 

agreement to hold harmless and indemnify 

herein shall not apply to claims for Bodily 

Injury or Property Damage resulting from 

willful misconduct of any of the Parties, the 


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Contractors and Subcontractors of any of the 

Parties, any part 440 customers, the 

Contractors and Subcontractors of any part 

440 customer, and in the case of Licensee, 

each Customer, any part 440 customer, and 

the Contractors and Subcontractors of each of 

them, the directors, officers, agents and 

employees of any of the foregoing, and in the 

case of the United States, its agents. 

(c) References herein to Customer shall 

apply to, and be deemed to include, each 

such customer severally and not jointly. 

(d) This Agreement shall be governed by 

and construed in accordance with United 

States Federal law. 

In witness whereof, the Parties to this 

Agreement have caused the Agreement to be 

duly executed by their respective duly 

authorized representatives as of the date 

written above. 

Licensee 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Customer 1 

By: lllllllllllllllllll

Its: lllllllllllllllllll

[Signature lines for each additional customer] 

Federal Aviation Administration of the 

Department of Transportation on Behalf of 

the United States Government 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Associate Administrator for Commercial 

Space Transportation 

■ 5. Revise Appendix C to part 440 to 

read as follows: 

Appendix C to Part 440—Agreement for 

Waiver of Claims and Assumption of 

Responsibility for Permitted Activities 

Part 1—Waiver of Claims and Assumption of 

Responsibility for Permitted Activities With 

No Customer 

This agreement is entered into this ld day 

of lll, by and between [Permittee] (the 

‘‘Permittee’’) and the Federal Aviation 

Administration of the Department of 

Transportation, on behalf of the United States 

Government (collectively, the ‘‘Parties’’), to 

implement the provisions of section 

440.17(c) of the Commercial Space 

Transportation Licensing Regulations, 14 

CFR Ch. III (the ‘‘Regulations’’). This 

agreement applies to [describe permitted 

activity]. In consideration of the mutual 

releases and promises contained herein, the 

Parties hereby agree as follows: 

1. Definitions 

Contractors and Subcontractors means 

entities defined by § 440.3 of the Regulations. 

Permit means Permit No. l issued 

on lll, by the Associate Administrator for 

Commercial Space Transportation, Federal 

Aviation Administration, Department of 

Transportation, to the Permittee, including 

all permit orders issued in connection with 

the Permit. 

Permittee means the holder of the Permit 

issued under 51 U.S.C. Subtitle V, ch. 509. 

United States means the United States and 

its agencies involved in Permitted Activities. 

Except as otherwise defined herein, terms 

used in this Agreement and defined in 51 

U.S.C. Subtitle V, ch. 509—Commercial 

Space Launch Activities, or in the 

Regulations, shall have the same meaning as 

contained in 51 U.S.C. Subtitle V, ch. 509, or 

the Regulations, respectively. 

2. Waiver and Release of Claims 

(a) Permittee hereby waives and releases 

claims it may have against the United States, 

and against its Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Permitted Activities, 

regardless of fault. 

(b) The United States hereby waives and 

releases claims it may have against Permittee 

and against its Contractors and 

Subcontractors, for Property Damage it 

sustains resulting from Permitted Activities, 

regardless of fault, to the extent that claims 

it would otherwise have for such damage 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under section 440.9(e) of the 

Regulations. 

3. Assumption of Responsibility 

(a) Permittee shall be responsible for 

Property Damage it sustains and for Bodily 

Injury or Property Damage sustained by its 

own employees, resulting from Permitted 

Activities, regardless of fault. Permittee shall 

hold harmless and indemnify the United 

States, and the Contractors and 

Subcontractors of the United States, for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Permitted Activities, regardless of fault. 

(b) The United States shall be responsible 

for Property Damage it sustains, resulting 

from Permitted Activities, regardless of fault, 

to the extent that claims it would otherwise 

have for such damage exceed the amount of 

insurance or demonstration of financial 

responsibility required under section 440.9(e) 

of the Regulations. 

4. Extension of Assumption of Responsibility 

and Waiver and Release of Claims 

(a) Permittee shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(a) and 3(a), respectively, to its 

Contractors and Subcontractors by requiring 

them to waive and release all claims they 

may have against the United States, and 

against the Contractors and Subcontractors of 

the United States, and to agree to be 

responsible for Property Damage they sustain 

and to be responsible, hold harmless, and 

indemnify the United States, and the 

Contractors and Subcontractors of the United 

States, for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Permitted Activities, regardless of fault. 

(b) The United States shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility 

as set forth in paragraphs 2(b) and 3(b), 

respectively, to its Contractors and 

Subcontractors by requiring them to waive 

and release all claims they may have against 

Permittee, and against the Contractors and 

Subcontractors of Permittee, and to agree to 

be responsible, for any Property Damage they 

sustain, resulting from Permitted Activities, 

regardless of fault, to the extent that claims 

they would otherwise have for such damage 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under section 440.9(e) of the 

Regulations. 

5. Indemnification 

Permittee shall hold harmless and 

indemnify the United States and its agencies, 

servants, agents, subsidiaries, employees and 

assignees, or any of them, from and against 

liability, loss, or damage arising out of claims 

that Permittee’s Contractors and 

Subcontractors may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Permitted 

Activities. 

6. Assurances Under 51 U.S.C. 50914(e) 

Notwithstanding any provision of this 

Agreement to the contrary, Permittee shall 

hold harmless and indemnify the United 

States and its agencies, servants, agents, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims for Bodily Injury or 

Property Damage, resulting from Permitted 

Activities, regardless of fault, except to the 

extent that: (i) As provided in section 7(b) of 

this Agreement, claims result from willful 

misconduct of the United States or its agents; 

(ii) claims for Property Damage sustained by 

the United States or its Contractors and 

Subcontractors exceed the amount of 

insurance or demonstration of financial 

responsibility required under section 440.9(e) 

of the Regulations; (iii) claims by a Third 

Party for Bodily Injury or Property Damage 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under § 440.9(c) of the Regulations, 

and do not exceed $1,500,000,000 (as 

adjusted for inflation after January 1, 1989) 

above such amount, and are payable 

pursuant to the provisions of 51 U.S.C. 50915 

and § 440.19 of the Regulations; or (iv) 

Licensee has no liability for claims exceeding 

$1,500,000,000 (as adjusted for inflation after 

January 1, 1989) above the amount of 

insurance or demonstration of financial 

responsibility required under § 440.9(c) of 

the Regulations. 

7. Miscellaneous 

(a) Nothing contained herein shall be 

construed as a waiver or release by Permittee 

or the United States of any claim by an 

employee of the Permittee or the United 

States, respectively, including a member of 

the Armed Forces of the United States, for 

Bodily Injury or Property Damage, resulting 

from Permitted Activities. 

(b) Notwithstanding any provision of this 

Agreement to the contrary, any waiver, 

release, assumption of responsibility, or 

agreement to hold harmless and indemnify 

herein shall not apply to claims for Bodily 

Injury or Property Damage resulting from 

willful misconduct of any of the Parties, the 

Contractors and Subcontractors of any of the 

Parties, and in the case of Permittee and its 

Contractors and Subcontractors, the 

directors, officers, agents, and employees of 


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any of the foregoing, and in the case of the 

United States, its agents. 

(c) This Agreement shall be governed by 

and construed in accordance with United 

States Federal law. 

In witness whereof, the Parties to this 

Agreement have caused the Agreement to be 

duly executed by their respective duly 

authorized representatives as of the date 

written above. 

[Permittee] 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Federal Aviation Administration of the 

Department of Transportation on Behalf of 

the United States Government 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Associate Administrator for Commercial 

Space Transportation 

Part 2—Waiver of Claims and Assumption of 

Responsibility for Permitted Activities With 

One Customer 

This agreement is entered into this ld day 

of lll, by and among [Permittee] (the 

‘‘Permittee’’), [Customer] (the ‘‘Customer’’) 

and the Federal Aviation Administration of 

the Department of Transportation, on behalf 

of the United States Government 

(collectively, the ‘‘Parties’’), to implement the 

provisions of section 440.17(c) of the 

Commercial Space Transportation Licensing 

Regulations, 14 CFR Ch. III (the 

‘‘Regulations’’). This agreement applies to 

[describe permitted activity]. In 

consideration of the mutual releases and 

promises contained herein, the Parties hereby 

agree as follows: 

1. Definitions 

Contractors and Subcontractors means 

entities defined by § 440.3 of the Regulations. 

Customer means the above-named 

Customer. 

Part 440 customer means a customer 

defined by § 440.3 of the Regulations, other 

than the above-named customer. 

Permit means Permit No. l issued 

on lll, by the Associate Administrator for 

Commercial Space Transportation, Federal 

Aviation Administration, Department of 

Transportation, to the Permittee, including 

all permit orders issued in connection with 

the Permit. 

Permittee means the holder of the Permit 

issued under 51 U.S.C. Subtitle V, ch. 509. 

United States means the United States and 

its agencies involved in Permitted Activities. 

Except as otherwise defined herein, terms 

used in this Agreement and defined in 51 

U.S.C. Subtitle V, ch. 509—Commercial 

Space Launch Activities, or in the 

Regulations, shall have the same meaning as 

contained in 51 U.S.C. Subtitle V, ch. 509, or 

the Regulations, respectively. 

2. Waiver and Release of Claims 

(a) Permittee hereby waives and releases 

claims it may have against Customer, the 

United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Permitted Activities, 

regardless of fault. 

(b) Customer hereby waives and releases 

claims it may have against Permittee, the 

United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Permitted Activities, 

regardless of fault. 

(c) The United States hereby waives and 

releases claims it may have against Permittee, 

Customer, any part 440 customer, and each 

of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains, and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Permitted Activities, 

regardless of fault, to the extent that claims 

it would otherwise have for such damage or 

injury exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

3. Assumption of Responsibility 

(a) Permittee and Customer shall each be 

responsible for Property Damage it sustains 

and for Bodily Injury or Property Damage 

sustained by its own employees, resulting 

from Permitted Activities, regardless of fault. 

Permittee and Customer shall each hold 

harmless and indemnify each other, the 

United States, any part 440 customer, and the 

Contractors and Subcontractors of each, for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Permitted Activities, regardless of fault. 

(b) The United States shall be responsible 

for Property Damage it sustains, resulting 

from Permitted Activities, regardless of fault, 

to the extent that claims it would otherwise 

have for such damage exceed the amount of 

insurance or demonstration of financial 

responsibility required under section 440.9(e) 

of the Regulations. 

4. Extension of Assumption of Responsibility 

and Waiver and Release of Claims 

(a) Permittee shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(a) and 3(a), respectively, to its 

Contractors and Subcontractors by requiring 

them to waive and release all claims they 

may have against Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Customer, the United States, 

any part 440 customer, and each of their 

respective Contractors and Subcontractors, 

for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Permitted Activities, regardless of fault. 

(b) Customer shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(b) and 3(a), respectively, to its 

customers, Contractors, and Subcontractors, 

by requiring them to waive and release all 

claims they may have against Permittee, the 

United States, part 440 customers, and each 

of their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Permittee, the United States, 

part 440 customers, and each of their 

respective Contractors and Subcontractors, 

for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Permitted Activities, regardless of fault. 

(c) The United States shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), 

respectively, to its Contractors and 

Subcontractors by requiring them to waive 

and release all claims they may have against 

Permittee, Customer, any part 440 customer, 

and each of their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for any Property Damage they 

sustain and for any Bodily Injury or Property 

Damage sustained by their own employees, 

resulting from Permitted Activities, 

regardless of fault, to the extent that claims 

they would otherwise have for such damage 

or injury exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

5. Indemnification 

(a) Permittee shall hold harmless and 

indemnify Customer and its directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them; the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them; and any part 440 

customer and its directors, officers, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and against 

liability, loss or damage arising out of claims 

that Permittee’s Contractors and 

Subcontractors may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Permitted 

Activities. 

(b) Customer shall hold harmless and 

indemnify Permittee and its directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them; the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them; and any part 440 

customer and its directors, officers, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and against 

liability, loss or damage arising out of claims 

that Customer’s Contractors, Subcontractors, 

or customers, may have for Property Damage 

sustained by them and for Bodily Injury or 

Property Damage sustained by their 

employees, resulting from Permitted 

Activities. 

6. Assurances Under 51 U.S.C. 50914(e) 

Notwithstanding any provision of this 

Agreement to the contrary, Permittee shall 

hold harmless and indemnify the United 

States and its agencies, servants, agents, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims for Bodily Injury or 

Property Damage, resulting from Permitted 

Activities, regardless of fault, except to the 


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extent that: (i) As provided in section 7(b) of 

this Agreement, claims result from willful 

misconduct of the United States or its agents; 

(ii) claims for Property Damage sustained by 

the United States or its Contractors and 

Subcontractors exceed the amount of 

insurance or demonstration of financial 

responsibility required under section 440.9(e) 

of the Regulations; (iii) claims by a Third 

Party for Bodily Injury or Property Damage 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under § 440.9(c) of the Regulations, 

and do not exceed $1,500,000,000 (as 

adjusted for inflation after January 1, 1989) 

above such amount, and are payable 

pursuant to the provisions of 51 U.S.C. 50915 

and § 440.19 of the Regulations; or (iv) 

Licensee has no liability for claims exceeding 

$1,500,000,000 (as adjusted for inflation after 

January 1, 1989) above the amount of 

insurance or demonstration of financial 

responsibility required under § 440.9(c) of 

the Regulations. 

7. Miscellaneous 

(a) Nothing contained herein shall be 

construed as a waiver or release by Permittee, 

Customer or the United States of any claim 

by an employee of the Permittee, Customer 

or the United States, respectively, including 

a member of the Armed Forces of the United 

States, for Bodily Injury or Property Damage, 

resulting from Permitted Activities. 

(b) Notwithstanding any provision of this 

Agreement to the contrary, any waiver, 

release, assumption of responsibility or 

agreement to hold harmless and indemnify 

herein shall not apply to claims for Bodily 

Injury or Property Damage resulting from 

willful misconduct of any of the Parties, the 

Contractors and Subcontractors of any of the 

Parties, any part 440 customer, the 

Contractors and Subcontractors of any part 

440 customer, and in the case of Permittee, 

Customer, any part 440 customer, and the 

Contractors and Subcontractors of each of 

them, the directors, officers, agents and 

employees of any of the foregoing, and in the 

case of the United States, its agents. 

(c) This Agreement shall be governed by 

and construed in accordance with United 

States Federal law. 

In witness whereof, the Parties to this 

Agreement have caused the Agreement to be 

duly executed by their respective duly 

authorized representatives as of the date 

written above. 

Permittee 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Customer 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Federal Aviation Administration of the 

Department of Transportation on Behalf of 

the United States Government 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Associate Administrator for Commercial 

Space Transportation 

Part 3—Waiver of Claims and Assumption of 

Responsibility for Permitted Activities With 

More Than One Customer 

This agreement is entered into this l day 

of lll, by and among [Permittee] (the 

‘‘Permittee’’); [List of Customers]; (with [List 

of Customers] hereinafter referred to in their 

individual capacity as ‘‘Customer’’); and the 

Federal Aviation Administration of the 

Department of Transportation, on behalf of 

the United States Government (collectively, 

the ‘‘Parties’’), to implement the provisions of 

section 440.17(c) of the Commercial Space 

Transportation Licensing Regulations, 14 

CFR Ch. III (the ‘‘Regulations’’). This 

agreement applies to [describe permitted 

activity]. 

In consideration of the mutual releases and 

promises contained herein, the Parties hereby 

agree as follows: 

1. Definitions 

Contractors and Subcontractors means 

entities defined by § 440.3 of the Regulations. 

Customer means each above-named 

Customer. 

Part 440 customer means a customer 

defined by § 440.3 of the Regulations, other 

than the above-named Customer. 

Permit means Permit No. l issued 

on lll, by the Associate Administrator for 

Commercial Space Transportation, Federal 

Aviation Administration, Department of 

Transportation, to the Permittee, including 

all permit orders issued in connection with 

the Permit. 

Permittee means the holder of the Permit 

issued under 51 U.S.C. Subtitle V, ch. 509. 

United States means the United States and 

its agencies involved in Permitted Activities. 

Except as otherwise defined herein, terms 

used in this Agreement and defined in 51 

U.S.C. Subtitle V, ch. 509—Commercial 

Space Launch Activities, or in the 

Regulations, shall have the same meaning as 

contained in 51 U.S.C. Subtitle V, ch. 509, or 

the Regulations, respectively. 

2. Waiver and Release of Claims 

(a) Permittee hereby waives and releases 

claims it may have against each Customer, 

the United States, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Permitted Activities, 

regardless of fault. 

(b) Each Customer hereby waives and 

releases claims it may have against Permittee, 

the United States, any part 440 customer, and 

each of their Contractors and Subcontractors, 

for Property Damage it sustains and for 

Bodily Injury or Property Damage sustained 

by its own employees, resulting from 

Permitted Activities, regardless of fault. 

(c) The United States hereby waives and 

releases claims it may have against Permittee, 

each Customer, any part 440 customer, and 

each of their respective Contractors and 

Subcontractors, for Property Damage it 

sustains, and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Permitted Activities, 

regardless of fault, to the extent that claims 

it would otherwise have for such damage or 

injury exceed the amount of insurance or 

demonstration of financial responsibility 

required under sections 440.9(c) and (e), 

respectively, of the Regulations. 

3. Assumption of Responsibility 

(a) Permittee and each Customer shall each 

be responsible for Property Damage it 

sustains and for Bodily Injury or Property 

Damage sustained by its own employees, 

resulting from Permitted Activities, 

regardless of fault. Permittee and each 

Customer shall each hold harmless and 

indemnify each other, the United States, any 

part 440 customer, and the Contractors and 

Subcontractors of each, for Bodily Injury or 

Property Damage sustained by its own 

employees, resulting from Permitted 

Activities, regardless of fault. 

(b) The United States shall be responsible 

for Property Damage it sustains, resulting 

from Permitted Activities, regardless of fault, 

to the extent that claims it would otherwise 

have for such damage or injury exceed the 

amount of insurance or demonstration of 

financial responsibility required under 

section 440.9(e) of the Regulations. 

4. Extension of Assumption of Responsibility 

and Waiver and Release of Claims 

(a) Permittee shall extend the requirements 

of the waiver and release of claims, and the 

assumption of responsibility, hold harmless, 

and indemnification, as set forth in 

paragraphs 2(a) and 3(a), respectively, to its 

Contractors and Subcontractors by requiring 

them to waive and release all claims they 

may have against each Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, and to agree to be 

responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify each Customer, the United 

States, any part 440 customer, and each of 

their respective Contractors and 

Subcontractors, for Bodily Injury or Property 

Damage sustained by their own employees, 

resulting from Permitted Activities, 

regardless of fault. 

(b) Each Customer shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility, 

hold harmless, and indemnification, as set 

forth in paragraphs 2(b) and 3(a), 

respectively, to its customers, Contractors, 

and Subcontractors, by requiring them to 

waive and release all claims they may have 

against Permittee, the United States, part 440 

customers, and each of their respective 

Contractors and Subcontractors, and to agree 

to be responsible, for Property Damage they 

sustain and to be responsible, hold harmless 

and indemnify Permittee, the United States, 

part 440 customers, and each of their 

respective Contractors and Subcontractors, 

for Bodily Injury or Property Damage 

sustained by their own employees, resulting 

from Permitted Activities, regardless of fault. 

(c) The United States shall extend the 

requirements of the waiver and release of 

claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), 

respectively, to its Contractors and 

Subcontractors by requiring them to waive 

and release all claims they may have against 


asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
1608 Federal Register / Vol. 80, No. 8 / Tuesday, January 13, 2015 / Proposed Rules 

Permittee, each Customer, any part 440 

customer, and each of their respective 

Contractors and Subcontractors, and to agree 

to be responsible, for any Property Damage 

they sustain and for any Bodily Injury or 

Property Damage sustained by their own 

employees, resulting from Permitted 

Activities, regardless of fault, to the extent 

that claims they would otherwise have for 

such damage or injury exceed the amount of 

insurance or demonstration of financial 

responsibility required under sections 

440.9(c) and (e), respectively, of the 

Regulations. 

5. Indemnification 

(a) Permittee shall hold harmless and 

indemnify each Customer and its directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them; the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them; and any part 440 

customer and its directors, officers, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and against 

liability, loss or damage arising out of claims 

that Permittee’s Contractors and 

Subcontractors may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Permitted 

Activities. 

(b) Each Customer shall hold harmless and 

indemnify Permittee and its directors, 

officers, servants, agents, subsidiaries, 

employees and assignees, or any of them; the 

United States and its agencies, servants, 

agents, subsidiaries, employees and 

assignees, or any of them; and any part 440 

customer and its directors, officers, servants, 

agents, subsidiaries, employees and 

assignees, or any of them, from and against 

liability, loss or damage arising out of claims 

that each Customer’s Contractors, 

Subcontractors, or customers, may have for 

Property Damage sustained by them and for 

Bodily Injury or Property Damage sustained 

by their employees, resulting from Permitted 

Activities. 

6. Assurances Under 51 U.S.C. 50914(e) 

Notwithstanding any provision of this 

Agreement to the contrary, Permittee shall 

hold harmless and indemnify the United 

States and its agencies, servants, agents, 

employees and assignees, or any of them, 

from and against liability, loss or damage 

arising out of claims for Bodily Injury or 

Property Damage, resulting from Permitted 

Activities, regardless of fault, except to the 

extent that: (i) As provided in section 7(b) of 

this Agreement, claims result from willful 

misconduct of the United States or its agents; 

(ii) claims for Property Damage sustained by 

the United States or its Contractors and 

Subcontractors exceed the amount of 

insurance or demonstration of financial 

responsibility required under section 440.9(e) 

of the Regulations; (iii) claims by a Third 

Party for Bodily Injury or Property Damage 

exceed the amount of insurance or 

demonstration of financial responsibility 

required under § 440.9(c) of the Regulations, 

and do not exceed $1,500,000,000 (as 

adjusted for inflation after January 1, 1989) 

above such amount, and are payable 

pursuant to the provisions of 51 U.S.C. 50915 

and § 440.19 of the Regulations; or (iv) 

Licensee has no liability for claims exceeding 

$1,500,000,000 (as adjusted for inflation after 

January 1, 1989) above the amount of 

insurance or demonstration of financial 

responsibility required under § 440.9(c) of 

the Regulations. 

7. Miscellaneous 

(a) Nothing contained herein shall be 

construed as a waiver or release by Permittee, 

any Customer or the United States of any 

claim by an employee of the Permittee, any 

Customer or the United States, respectively, 

including a member of the Armed Forces of 

the United States, for Bodily Injury or 

Property Damage, resulting from Permitted 

Activities. 

(b) Notwithstanding any provision of this 

Agreement to the contrary, any waiver, 

release, assumption of responsibility or 

agreement to hold harmless and indemnify 

herein shall not apply to claims for Bodily 

Injury or Property Damage resulting from 

willful misconduct of any of the Parties, the 

Contractors and Subcontractors of any of the 

Parties, any part 440 customer, the 

Contractors and Subcontractors of any part 

440 customer, and in the case of Permittee, 

each Customer, any part 440 customer, and 

the Contractors and Subcontractors of each of 

them, the directors, officers, agents and 

employees of any of the foregoing, and in the 

case of the United States, its agents. 

(c) References herein to Customer shall 

apply to, and be deemed to include, each 

such customer severally and not jointly. 

(d) This Agreement shall be governed by 

and construed in accordance with United 

States Federal law. 

In witness whereof, the Parties to this 

Agreement have caused the Agreement to be 

duly executed by their respective duly 

authorized representatives as of the date 

written above. 

Permittee 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Customer 1 

By: lllllllllllllllllll

Its: lllllllllllllllllll

[Signature lines for each additional customer] 

Federal Aviation Administration of the 

Department of Transportation on Behalf of 

the United States Government 

By: lllllllllllllllllll

Its: lllllllllllllllllll

Issued under authority provided by 49. 

U.S.C. 106(f) and 44701(a) in Washington, 

DC, on January 2, 2015. 

Shana Dale, 

Deputy Associate Administrator, Commercial 

Space Transportation. 

[FR Doc. 2015–00252 Filed 1–12–15; 8:45 am] 

BILLING CODE 4910–13–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2014–0861, FRL–9921–49– 

Region 9] 

Promulgation of Air Quality 

Implementation Plans; Arizona; 

Regional Haze Federal Implementation 

Plan; Reconsideration 

AGENCY: Environmental Protection 

Agency. 

ACTION: Proposed rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is proposing to revise 

provisions of the Arizona Regional Haze 

(RH) Federal Implementation Plan (FIP) 

applicable to the Nelson Lime Plant. In 

response to a request for reconsideration 

from the plant’s owner, Lhoist North 

America of Arizona, Inc. (LNA), we 

propose to replace the control 

technology demonstration requirements 

for nitrogen oxides (NOX) applicable to 

Kilns 1 and 2 at the Nelson Lime Plant 

with a series of revised recordkeeping 

and reporting requirements. Lastly, we 

are proposing a correction in the 

regulatory language of the final rule 

where a table listing the pollution 

emission limits for NOX and sulfur 

dioxide (SO2) at each kiln was 

misprinted. We are seeking comment on 

each of these proposed actions. 

DATES: Written comments must be 

submitted on or before February 27, 

2015. Requests for a public hearing must 

be received on or before January 28, 

2015. 

ADDRESSES: See the SUPPLEMENTARY

INFORMATION section for further 

instructions on where and how to learn 

more about this proposal, request a 

public hearing, or submit comments. 

FOR FURTHER INFORMATION CONTACT: 

Thomas Webb, U.S. EPA, Region 9, 

Planning Office, Air Division, Air-2, 75 

Hawthorne Street, San Francisco, CA 

94105. Thomas Webb can be reached at 

telephone number (415) 947–4139 and 

via electronic mail at webb.thomas@

epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document, ‘‘we,’’ ‘‘us,’’ 

and ‘‘our’’ refer to EPA. 

Table of Contents 

I. General Information 

II. Background 

III. FIP Revision for Nelson Lime Plant 

IV. EPA’s Proposed Action 

V. Statutory and Executive Order Reviews 


asabaliauskas on DSK5VPTVN1PROD with PROPOSALS