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TABLE 17—TEST OPERATING AND TEST CONDITION TOLERANCES FOR FROST ACCUMULATION HEATING MODE TESTS— 

Continued 

Test operating tolerance 1 Test condition 

tolerance 1

Sub-interval H 2 Sub-interval D 3

Sub-interval H 2

Outdoor entering wet-bulb temperature, °F ............................................................... 1.5 .............................. 0.5 

External resistance to airflow, inches of water .......................................................... 0.05 .............................. 5 0.02 

Electrical voltage, % of rdg ........................................................................................ 2.0 .............................. 1.5 

1See section 1.2 of this appendix, Definitions. 

2Applies when the heat pump is in the heating mode, except for the first 10 minutes after termination of a defrost cycle. 

3Applies during a defrost cycle and during the first 10 minutes after the termination of a defrost cycle when the heat pump is operating in the 

heating mode. 4For heat pumps that turn off the indoor blower during the defrost cycle, the noted tolerance only applies during the 10 minute interval that follows defrost termination. 5Only applies when testing non-ducted heat pumps. 

* * * * * 

4.1.1 * * * 

b. * * * Evaluate the cooling mode cyclic 

degradation factor CDc as specified in section 

3.5.3 of this appendix. 

* * * * * 

4.1.2.1 * * * 

c. * * * Evaluate the cooling mode cyclic 

degradation factor CDc as specified in section 

3.5.3 of this appendix. 

* * * * * 

4.1.3.1 * * * 

nj/N = fractional bin hours for the cooling 

season; the ratio of the number of hours 

during the cooling season when the 

outdoor temperature fell within the 

range represented by bin temperature Tj

to the total number of hours in the 

cooling season, dimensionless. 

Obtain the fractional bin hours for the 

cooling season, nj/N, from Table 18. Use 

Equations 4.1.3–1 and 4.1.3–2, respectively, 

to evaluate Q ̇ c

k=1(Tj) and E ̇ ck=1(Tj). Evaluate 

the cooling mode cyclic degradation factor 

CDc as specified in section 3.5.3 of this 

appendix. 

* * * * * 

4.1.4.1 * * * 

* * * Evaluate the cooling mode cyclic 

degradation factor CDc as specified in section 

3.5.3 of this appendix. 

* * * * * 

Appendix M to Subpart B of Part 430— 

[Amended] 

■ 5. In the table below, for each section 

of appendix M to subpart B of part 430 

indicated in the left column, remove the 

language indicated in the middle 

column from wherever it appears in that 

section, and add the language indicated 

in the right column. 

Sections Remove Add 

3.2.2.1, 3.2.3.a ... A default value of CDc may be used in lieu of conducting the 

cyclic test. The default value of CDc is 0.20.

If the two optional tests are conducted but yield a tested CDc

that exceeds the default CDc or if the two optional tests are 

not conducted, assign CDc the default value of 0.20. 

3.2.4.a ................ A default value for CDc may be used in lieu of conducting the 

cyclic test. The default value of CDc is 0.25.

If the two optional tests are conducted but yield a tested CDc

that exceeds the default CDc or if the two optional tests are 

not conducted, assign CDc the default value of 0.25. 

3.6.1 ................... A default value for CDh may be used in lieu of conducting the 

cyclic test. The default value of CDh is 0.25.

If this optional test is conducted but yields a tested CDh that 

exceeds the default CDh or if the optional test is not conducted, assign CDh the default value of 0.25. 

3.6.2, 3.6.4.a ...... A default value for CDh may be used in lieu of conducting the 

cyclic. The default value of CDh is 0.25.

If this optional test is conducted but yields a tested CDh that 

exceeds the default CDh or if the optional test is not conducted, assign CDh the default value of 0.25. 

Appendix M to Subpart B of Part 430— 

[Amended] 

■ 6. For each newly redesignated 

section of appendix M to subpart B of 

part 430 in the first column, remove the 

cross reference sections in the middle 

column, and add in their places, the 

cross reference sections in the right 

column. 

Section Remove Add 

4.1.3 .......................... 4.1.2.4 4.1.3.1 

4.1.2.5 4.1.3.2 

4.1.2.6 4.1.3.3 

4.1.2.7 4.1.3.4 

4.1.4.3 ....................... 4.1.2.7 4.1.3.4 

[FR Doc. 2016–19227 Filed 8–17–16; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 440 

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

440–4] 

RIN 2120–AK44 

Reciprocal Waivers of Claims for 

Licensed or Permitted Launch and 

Reentry Activities 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is amending its 

commercial space regulations governing 

reciprocal waivers of claims to require 

that customers waive claims against all 

the customers involved in a launch or 

reentry, including those signing a 

different set of reciprocal waivers. Also, 

customers of a customer contracting 

directly with a licensee or permittee 

will not have to sign a waiver directly 

with the licensee or permittee, other 

customers, or the FAA. The FAA is also 

adding an appendix to provide 

permittees with an example of a Waiver 

of Claims and Assumption of 

Responsibility for Permitted Activities 

with No Customer. 


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55116 Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and Regulations 

1Blue Origin Comment at 2. 

DATES: Effective October 17, 2016. 

ADDRESSES: For information on where to 

obtain copies of rulemaking documents 

and other information related to this 

final rule, see ‘‘How To Obtain 

Additional Information’’ in the 

SUPPLEMENTARY INFORMATION section of 

this document. 

FOR FURTHER INFORMATION CONTACT: For 

questions concerning this rule, contact 

Shirley McBride, Regulations Program 

Lead, AST–300, Office of Commercial 

Space Transportation, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone (202) 267–7470; email 

Shirley.McBride@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The Commercial Space Launch Act of 

1984, as amended at 51 U.S.C. 50901– 

50923 (Chapter 509), 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. 

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). 

I. Overview of Final Rule 

This rule revises part 440 in the 

following ways: (1) Amends § 440.17 to 

describe fully the reciprocal waiver of 

claims requirements applicable to the 

relevant appendices; (2) amends 

§ 440.17 and updates appendices B and 

C so that customers of any customer 

contracting directly with a licensee or 

permittee do not have to sign a waiver 

directly with the licensee or permittee, 

other customers, or the FAA; (3) amends 

§ 440.17 and updates appendices B and 

C of part 440 so that customers 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) 

amends § 440.3 to add a definition of 

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

customer’’; and (5) adds 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 will 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 

permittee if it has customers to the 

launch. This rule does not address 

changes to the reciprocal waiver of 

claims created by the U.S. Commercial 

Space Launch Competitiveness Act, P.L. 

114–90 (2015). Those changes will be 

addressed by a future rulemaking. 

II. Background 

On January 13, 2015, the FAA 

published a notice of proposed 

rulemaking (NPRM), ‘‘Reciprocal 

Waivers of Claims for Licensed or 

Permitted Launch and Reentry 

Activities,’’ 80 FR 1590, proposing to 

amend the FAA’s regulations regarding 

reciprocal waivers of claims agreements. 

The NPRM also discussed the potential 

burden the reciprocal waivers of claims 

requirements may impose on licensees 

and permittees launching hosted 

payloads. The comment period closed 

on March 16, 2015. On June 15, 2015, 

the FAA reopened the comment period 

for 30 days because the regulatory 

evaluation was not posted to the docket 

prior to the close of the NPRM’s 

comment period. This second comment 

period was limited to comments on the 

regulatory evaluation only, and closed 

on July 15, 2015. The FAA received five 

comments on the NPRM and no 

comments on the regulatory evaluation. 

III. Discussion of Final Rule and Public 

Comments 

The FAA received comments from 

five entities, including launch operators, 

service providers, and one individual. 

Launch operators who provided 

comments are Blue Origin, LLC (Blue 

Origin), Lockheed Martin Corporation 

(Lockheed), and Space Exploration 

Technologies Corporation (SpaceX). 

Harris Corporation (Harris) and an 

individual also commented. 

In general, the commenters supported 

the proposed requirements. A few 

commenters suggested changes to the 

proposed regulatory text in order to 

achieve the FAA’s proposed outcome. 

After careful consideration of the 

comments, the FAA generally adopts 

the provisions as proposed, but makes 

the following changes. The FAA amends 

§ 440.17(b) and (c) and part 440, 

appendices B and C, to include part 440 

customers and their contractors and 

subcontractors in the reciprocal waiver 

of claims scheme. The FAA adds 

§ 440.17(c)(1)(iii)(D) to preserve the 

statutory and regulatory requirements 

that all customers waive claims against 

all the other parties involved in the 

licensed permitted activity. Lastly, the 

FAA removes permittees from the 

indemnification scheme reserved by 

statute for licensees only, thereby 

maintaining the scope of the 

indemnification scheme as set out in 51 

U.S.C. 50915. 

A. First-Tier and Part 440 Customers 

As originally proposed, § 440.17(c) is 

amended to require the FAA, the 

licensee or permittee, and each first-tier 

customer to enter into a reciprocal 

waiver of claims agreement for each 

licensed or permitted activity in which 

the U.S. Government, any agency, or its 

contractors and subcontractors are 

involved, or where property insurance 

is required under § 440.9(d). 

Additionally, as proposed, § 440.3 is 

amended to define the terms ‘‘first-tier 

customer’’ and ‘‘part 440 customer.’’ A 

first-tier customer is one who satisfies 

the definition of a customer and has a 

contractual relationship with a license 

or permit holder to obtain launch or 

reentry services. A part 440 customer 

means one who satisfies the regulatory 

definition of a customer and who is not 

a first-tier customer. Blue Origin 

requested that the FAA clarify how a 

licensee or permittee should identify its 

customers under the proposed rule. The 

FAA adopts these provisions as 

proposed, and provides further 

clarification below. 

Blue Origin requested clarification on 

how the requirement to enter into a 

reciprocal waiver of claims agreement 

with each first-tier customer would 

apply to a situation in which a first-tier 

customer was a single entity 

representing a group of persons. Blue 

Origin stated that it ‘‘interprets the 

proposal to require that only the single 

entity representing the group will be 

required to sign a reciprocal waiver with 

the licensee/permittee and FAA.’’ 1 Blue 

Origin also requested that the FAA 


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Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and Regulations 55117 

2Blue Origin Comment at 2. 

3The FAA assumes for purposes of this 

hypothetical that the entity representing the group 

meets the FAA’s definition of customer in 14 CFR 

440.3, by, for example, being the one who procures 

the launch. 

4Blue Origin Comment at 2. 

5 Financial Responsibility Requirements for 

Licensed Launch Activities, NPRM, 61 FR 38992, 

39002 (July 25, 1996). 

6 Financial Responsibility, 61 FR at 39002. 

7 Financial Responsibility Requirements for 

Licensed Launch Activities, Final Rule, 63 FR 

45592, 45607 (August 26, 1998). 8 Financial Responsibility, 61 FR at 39001. 

confirm that ‘‘if a first-tier customer is 

a single entity representing a group of 

persons, the licensee/permittee is 

required to enter into a cross waiver of 

claims only with a representative of the 

group as the first-tier customer.’’ 2

An entity’s status as the 

representative of a group is not the 

determining factor as to whether or not 

that entity is required to sign a 

reciprocal waiver with the licensee or 

permittee and the FAA. Rather, a 

licensee or permittee is only required to 

enter into a reciprocal waiver with 

customers with whom it is in a 

contractual relationship. 

To determine the entities with which 

it must execute a reciprocal waiver, the 

licensee or permittee should determine 

what entities it has contracted with for 

the licensed or permitted activity who 

also qualify as customers under 14 CFR 

440.3. Accordingly, if a licensee entered 

into a contract with a number of entities 

for launch or reentry services, it would 

enter into reciprocal waivers with each 

of them. 

Blue Origin provided a hypothetical 

scenario in which a school, university 

research lab, or other educational 

institution represented a group of 

students that contributed to the 

development of a payload. In this 

hypothetical situation, the single entity 

representing the group may be the only 

entity required to sign a reciprocal 

waiver with the licensee or permittee 

and the FAA. However, the hypothetical 

entity would be the only entity required 

to sign the reciprocal waiver only if it 

was the only entity in a contractual 

relationship with the licensee or 

permittee, and therefore the only entity 

who would qualify as a first-tier 

customer.3 In that case, the 

representative would be the only firsttier customer and, therefore, the only 

party required to sign the reciprocal 

waiver of claims with the licensee or 

permittee and the FAA. If, however, any 

other member of the group was also in 

a direct contractual relationship with 

the licensee or permittee and also met 

the FAA’s definition of customer under 

§ 440.3, that member would also be a 

first-tier customer and would also be 

required to sign a reciprocal waiver of 

claims with the licensee or permittee 

and the FAA. It would not, however, 

have to sign with all other first-tier 

customers because this final rule 

ensures that customers waive claims 

against all other customers involved in 

a launch or reentry, including those 

signing different reciprocal waivers. 

Blue Origin also expressed concern 

regarding how a licensee or permittee 

will determine who its customers are. 

Specifically, Blue Origin pointed out 

that determining whether each party has 

an interest in the payload is 

complicated by the fact that ‘‘people 

have varying levels of involvement (e.g., 

a student works an entire semester on a 

project, vs. one who works a few hours), 

or have left the group (e.g., some 

students graduate prior to completion of 

a payload, and are replaced by other 

students).’’ 4

The FAA is not changing the 

definition of ‘‘customer’’ under § 440.3 

in this rulemaking. However, the burden 

of identifying part 440 customers does 

shift with this rule, not to the licensee 

or permittee as Blue Origin suggests, but 

to the appropriate first-tier customer. 

This is because under this rule a 

licensee or permittee is responsible for 

implementing a reciprocal waiver of 

claims only with those customers with 

whom it is in a direct contractual 

relationship. A first-tier customer, as a 

result of this rule, will be responsible 

for implementing a reciprocal waiver of 

claims with each of its customers. 

Although it is not changing the 

definition of customer under § 440.3, 

the FAA reiterates what it has said 

about the definition of customer in 

previous rulemakings. In its 1996 

rulemaking, the FAA pointed out that it 

construes the term customer in 

proposed § 440.3 more broadly than just 

‘‘the party that actually contracts with 

the commercial launch services 

provider and prospective licensee.’’ 5

The 1996 NPRM provided the example 

of a customer who had placed its 

property on board the payload in order 

to receive an on-orbit service, such as 

microgravity experiments, and stated 

that such an entity would be considered 

a customer to the launch even though it 

did not procure the launch.6 In the final 

rule that resulted from the 1996 NPRM, 

the FAA stated: ‘‘The definition of 

‘customer’ is further modified in the 

final rule to include any person who 

places property on board a payload for 

the purpose of obtaining launch or 

payload services . . . .’’ 7

The FAA’s definition of customer, 

therefore, as applied to Blue Origin’s 

hypothetical, would be based on 

ownership rights in the payload rather 

than the level of involvement in 

developing the payload. For example, a 

person may build a payload and sell it 

to a company. The company may then 

place that payload on board a rocket. 

The builder has no ownership rights in 

the payload, and therefore would not be 

a customer under § 440.3. The company 

who purchased, and therefore owns the 

payload, would be a customer under 

§ 440.3. The person facing financial 

exposure for failing to properly identify 

these other non-signing customers 

would be the first-tier customer. 

B. Government Customers 

A Government customer need not sign 

a reciprocal waiver of claims because 

the FAA signs the reciprocal waiver of 

claims on behalf of the Government. 

Although, the proposed rule did not 

mention Government customers, Harris 

Corporation requested clarification on 

the treatment of Government-hosted 

payload customers on commercial 

payloads launched pursuant to Chapter 

509. The FAA makes no change based 

on this comment. 

Specifically, Harris asked whether the 

FAA would sign the waiver form on 

behalf of a Government customer, 

whether a Government customer could 

be considered a part 440 customer, and 

whether a Government customer’s 

contractor would be considered a 

contractor of the United States for 

purposes of § 440.14(c). As the agency 

has stated in previous rulemakings, 

‘‘[w]hen the licensee’s customer is a 

U.S. Government agency, the agency is 

treated the same as any 

nongovernmental customer for purposes 

of determining the appropriate amount 

of property insurance required of the 

licensee and in terms of the U.S. 

Government’s waiver of claims or 

property damage or less above the 

required amount of property insurance 

under [51 U.S.C. 50914(b)(2)]. That is, a 

Government payload is not covered by 

the required Government property 

insurance and the United States 

Government agency-customer accepts 

responsibility for property damage to 

the payload.’’ 8

Because the FAA signs on behalf of 

the U.S. Government, any Government 

customer would not separately sign any 

reciprocal waiver of claims. The 

designation as a part 440 customer does 

not change a customer’s responsibilities 

under the reciprocal waivers of claims, 

it only affects with whom the customer 

must sign a reciprocal waiver of claims. 

A Government customer’s status as a 

first-tier or part 440 customer does not 


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55118 Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and Regulations 

9SpaceX comment p. 1 

10SpaceX comment at p. 2 

11See, e.g., 80 FR 1590, 1600 (extending the 

assumption of responsibility and waiver and release 

of claims for a licensed launch with one customer). 

matter, because the FAA signs on behalf 

of the Government. 

As to Harris’ last question concerning 

whether a contractor of a Government 

customer would be considered a 

contractor of the United States for 

purposes of § 440.14(c), it is beyond the 

scope of the current rulemaking. 

Additionally, the FAA notes that 

§ 440.14(c) is not currently a regulatory 

provision. 

C. Extension of the Reciprocal Waivers 

of Claims Requirements 

The FAA intended to amend only the 

method by which the obligations under 

the reciprocal waiver of claims were 

extended. Rather than requiring the 

licensee or permittee to implement the 

reciprocal waiver of claims with its 

contractors, subcontractors, customers, 

and customers’ contractors and 

subcontractors, this rule requires that 

each customer extend the reciprocal 

waiver of claims to its contractors and 

subcontractors. Although it did not 

receive comment on the issue, the FAA 

adds the extension of the reciprocal 

waiver of claims requirements to 

§ 440.17(b) to require the licensee or 

permittee, each first-tier customer, and 

each part 440 customer to extend the 

requirements to their respective 

contractors and subcontractors. 

Therefore, and as discussed below, a 

part 440 customer must waive and 

release claims, assume responsibility, 

hold harmless, and indemnify other 

parties identified in the waiver as a 

result of both the explicit requirement 

in § 440.17(c)(1)(iii)(D) and the 

extension of the reciprocal waiver of 

claims requirements in § 440.17(c)(2) 

and (c)(1)(iii). 

Additionally, the FAA adds language 

to § 440.17(c)(2)(i), (ii), and (iii), and the 

associated part 440 appendices 

specifying that a party to a reciprocal 

waiver of claims must agree in that 

waiver to indemnify another party to the 

agreement from claims by the 

indemnifying party’s contractors, 

subcontractors, and in the case of the 

customer, customers, arising out of the 

indemnifying party’s failure to correctly 

extend the reciprocal waiver of claims 

requirement. This change was 

contemplated by the proposed rule, and 

preserves the requirements of this 

section prior to the amendments 

included in this final rule. 

1. Extension of Reciprocal Waiver of 

Claims to Part 440 Customers’ 

Contractors and Subcontractors 

SpaceX commented that the proposed 

rule did not effectively extend the 

reciprocal waiver of claims 

requirements to a part 440 customer’s 

contractors and subcontractors such that 

those contractors and subcontractors 

waived claims against all other parties 

otherwise protected by the reciprocal 

waiver of claims. SpaceX also 

commented that the appendices should 

be adjusted to state that a first-tier 

customer indemnifies the appropriate 

parties from and against liability, loss, 

or damage arising out of any claim 

brought by its customer’s contractors 

and subcontractors. Harris commented 

that § 440.17(b) should be revised to 

include part 440 customers and their 

contractors and subcontractors in the 

waiver scheme to ensure that the parties 

to the reciprocal waiver of claims waive 

claims against them. In this rule the 

FAA changes § 440.17 to apply to part 

440 customers’ contractors and 

subcontractors, but does not adopt 

SpaceX’s proposed language for the 

appendices. This marks a change from 

the regulatory text that the FAA 

originally proposed, based on comments 

discussed below. 

SpaceX recommended additions to 

proposed § 440.17 and the associated 

appendices ‘‘to ensure that the 

regulations maintain the current 

obligations of all customers’ contractors 

and subcontractors with respect to the 

licensee/permittee.’’ 9 SpaceX stated 

that although the proposed rule might 

streamline the reciprocal waiver of 

claims process, ‘‘it does not expressly 

provide the same protections to the 

licensee or permittee contained in the 

current rule.’’ 10 Specifically, SpaceX 

argued that, under the proposed rule, 

the licensee or permittee would have 

been required to waive and release any 

claims it might have against a part 440 

customer and its contractors and 

subcontractors, but a part 440 

customer’s contractors and 

subcontractors would not have been 

required to waive claims against all 

other parties to which the reciprocal 

waiver requirements extended. SpaceX 

also noted that the contractors and 

subcontractors of a part 440 customer 

were not accounted for in proposed 

§ 440.17 or in proposed sections 4(b) 

and 5(b) of the part 440 appendices in 

the same way as under the current rules. 

SpaceX provided suggested language to 

address what it saw as inconsistencies. 

After considering the comments, the 

FAA has decided to make changes to the 

regulatory text to preserve the intent of 

this rulemaking and Chapter 509. 

Accordingly, § 440.17(b) and (c) require 

that each customer extends the 

reciprocal waiver of claims 

requirements to the customer’s 

contractors and subcontractors. The 

reciprocal waiver of claims requires that 

the contractors and subcontractors of 

each customer waive and release claims, 

assume responsibility, hold harmless, 

and indemnify other parties identified 

in the waiver, including the licensee or 

permittee. This rule explicitly requires 

the licensee or permittee, each first-tier 

customer, and each part 440 customer to 

extend the reciprocal waiver of claims 

requirements to their contractors, 

subcontractors and customers. 

The FAA notes, however, that SpaceX 

recommended changing the text in each 

of the appendices to part 440 at section 

4(b) to read: ‘‘Customer shall extend the 

requirements of the waiver . . . 

respectively, to its Contractors, 

Subcontractors, customers, and such 

customers’ contractors and 

subcontractors . . . .’’ The FAA is not 

adopting this suggested change for two 

reasons. First, this suggested language 

misappropriates the responsibility to 

extend the reciprocal waiver of claims 

requirements. Under SpaceX’s proposed 

language, each first-tier customer would 

be required to extend the reciprocal 

waiver of claims requirements to its 

customers’ contractors and 

subcontractors. Instead, this rule 

requires each customer to extend the 

reciprocal waiver of claims 

requirements to its contractors and 

subcontractors, but not to its customers’ 

contractors and subcontractors. This is 

consistent with the previous version of 

the part 440 appendices. Second, this 

language is unnecessary because the 

extension of responsibilities in 

§ 440.17(b)(2) and (3) and (c)(1)(iii) 

created by this rulemaking ensure that 

a part 440 customer extends to the 

customer’s contractors and 

subcontractors the requirements of the 

reciprocal waiver of claims, which 

include waiving and releasing claims, 

assuming responsibility, and holding 

harmless and indemnifying other parties 

identified in the waiver,11 because a 

first-tier customer must extend the 

waiver requirements to its customer. In 

other words, the requirements work as 

follows: 

(1) Under § 440.17 and the part 440 

appendices, a first-tier customer must 

waive and release claims, assume 

responsibility, hold harmless, and 

indemnify other parties identified in the 

waiver, as set forth in paragraphs 2(b) 

and 3(a) of the appendices. 

Additionally, a first-tier customer must 

extend each of these requirements to its 


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Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and Regulations 55119 

12Commercial Space Launch Act Amendments of 

1988, Report of the Senate Committee on 

Commerce, Science, and Transportation on H.R. 

4399, S. Rep. No. 100–593 at 14 (Oct. 7, 1988). 

13 51 U.S.C. 50915(a)(1). 

14 51 U.S.C. 50915(a)(3)(A). 

contractors, subcontractors, and 

customers. 

(2) Because a first-tier customer must 

extend the requirements of the waiver, 

including the requirement to extend the 

waiver, to its customers, it follows that 

its customers will have the same 

obligation as a first-tier customer under 

the waiver. 

(3) Therefore, because of the 

extension of responsibilities, a first-tier 

customer’s customers will be required, 

in turn, to extend the waiver 

requirements to their contractors, 

subcontractors and customers. 

Additionally, § 440.17(b)(3) and 

(c)(1)(iii) explicitly require that each 

part 440 customer extends the 

reciprocal waiver of claims 

requirements to its contractors and 

subcontractors. 

Therefore, the FAA does not need to 

amend section 4(b) of the appendices to 

ensure that part 440 customers extend 

the waiver requirements to their 

contractors and subcontractors. Section 

440.17(b)(2) and (3) and (c)(1)(iii) and 

section 4(b) of the appendices already 

require this. The FAA also disagrees 

with SpaceX’s suggestion to amend 

section 5(b) of the appendices to require 

that a first-tier customer indemnify the 

appropriate parties from and against 

liability, loss, or damage arising out of 

any claim brought by its customer’s 

contractors and subcontractors. 

Adopting SpaceX’s suggestion would 

place an additional burden of 

indemnification on a first-tier customer 

that did not previously exist in part 440. 

Previous part 440 appendices required 

only that a first-tier customer indemnify 

the appropriate parties from and against 

liability, loss, or damage arising out of 

certain claims brought by its 

contractors, subcontractors, and 

employees. SpaceX’s proposed language 

would additionally require a first-tier 

customer to indemnify from claims 

brought by its customer’s contractors, 

subcontractors, and employees. As 

explained above, a first-tier customer is 

required to extend the reciprocal waiver 

of claims requirements to its customers. 

As a result of this extension, a first-tier 

customer’s customer, rather than the 

first-tier customer himself, is required to 

indemnify against certain claims 

brought by its contractors, 

subcontractors, and employees. 

Lastly, Harris pointed out that the 

absence of part 440 customers and their 

contractors and subcontractors in 

proposed § 440.17(b) exposes these 

parties to liability that represents a 

departure from Chapter 509. The FAA 

agrees, and this rule requires parties to 

the reciprocal waiver of claims 

described in § 440.17(b) to waive claims 

against part 440 customers and their 

contractors and subcontractors. 

2. Extension of Reciprocal Waiver of 

Claims to Part 440 Customers 

In its comment, Harris also noted that 

the FAA overlooked explicitly requiring 

each part 440 customer to comply with 

the reciprocal waiver of claims 

requirements. Therefore, the FAA now 

adds an explicit requirement in addition 

to the extension of requirements 

provisions in order to clarify that each 

part 440 customer must enter into a 

reciprocal waiver of claims agreement. 

This marks a change from the regulatory 

text that the FAA originally proposed. 

Harris commented that proposed 

§ 440.17(b) and (c) would not have 

ensured that part 440 customers waive 

claims against the other parties included 

in the waiver scheme. Harris further 

asserted that the purpose behind the 

waiver scheme is ‘‘(1) [t]o limit the total 

universe of claims that might arise as a 

result of a launch; and (2) to eliminate 

the necessity for all of these parties to 

obtain property and casualty insurance 

to protect against these claims.’’ 12

The FAA agrees. Under Chapter 509 

and the FAA’s current rules, the 

licensee or permittee is required to enter 

into a reciprocal waiver of claims with 

all customers and their respective 

contractors and subcontractors involved 

in launch or reentry services. In other 

words, each customer must waive and 

release claims, assume responsibility, 

hold harmless, and indemnify other 

parties identified in the waiver. In the 

NPRM, the FAA proposed to require 

only first-tier customers to sign a 

reciprocal waiver of claims with the 

FAA and the licensee or permittee. By 

separating first-tier customers from part 

440 customers, the proposed rule did 

not explicitly require part 440 

customers to waive and release claims, 

assume responsibility, hold harmless, 

and indemnify other parties identified 

in the waiver. Instead, these 

requirements were implied by the 

extension of requirements in which a 

first-tier customer is required to extend 

the reciprocal waiver of claims 

requirements to its customers, 

contractors, and subcontractors. Because 

commenters expressed some confusion 

about the requirements, the FAA 

amends § 440.17(b) and adds 

§ 440.17(c)(1)(iii)(D) to explicitly require 

that part 440 customers waive claims 

against all the other parties involved in 

the licensed activity. 

As stated previously, these 

requirements levied on part 440 

customers also exist as a result of the 

extension of the reciprocal waiver of 

claims that is required by § 440.17(b)(2), 

(b)(3), and (c)(1)(iii). By shifting the 

responsibility to extend the reciprocal 

waiver of claims from the licensee or 

permittee to the appropriate customer, 

the burden to indemnify also shifts. 

Therefore, should a customer fail to 

extend the reciprocal waiver of claims 

requirements to its customer, and its 

customer bring a claim against a party 

involved in the launch, the customer 

who failed to extend would be required 

to indemnify that party against its 

customer’s claim. This represents a shift 

from the old scheme in which all 

customers signed the reciprocal waiver 

of claims, and therefore no one would 

be required to indemnify against a 

customer’s claim unless the licensee 

failed to identify a customer and ensure 

that that customer signed the reciprocal 

waiver of claims. 

D. Removal of Permittees From 

Indemnification Scheme 

This rule does not change the 

indemnification scheme created by 51 

U.S.C. 50915. Chapter 509 provides that 

the United States Government shall pay 

for a successful third party claim to the 

extent the claim exceeds the insurance 

coverage required by statute but does 

not exceed the statutory limit for such 

coverage, provided Congress 

appropriates the funds.13 Chapter 509 

also lists the persons against whom the 

claim may be brought in order to qualify 

for this coverage.14 This list includes 

licensees, but does not include 

permittees. Therefore, Congress will not 

appropriate funds for a third party claim 

against a permittee that exceeds the 

insurance requirements in Chapter 509. 

Although it received no comments on 

the issue, the FAA has identified an 

error in the proposed rule that it 

corrects with the final rule. In the 

proposed rule, the FAA would have 

included permittees in the 

indemnification scheme reserved by 

statute for licensees only. Because this 

error would create a conflict with the 

FAA’s statutory authority, which the 

FAA did not intend, the FAA has 

amended the regulatory text in this final 

rule to comply with Chapter 509 by 

removing permittees from the section 

50915 indemnification scheme. 


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E. Miscellaneous 

This rule includes a new § 440.17(f) to 

include all provisions related to willful 

misconduct. The NPRM did not propose 

changing the willful misconduct 

provisions, and this rule also does not 

change those provisions but located 

them in § 440.17(f) for clarity. 

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 (Public Law 96–354) requires 

agencies to analyze the economic 

impact of regulatory changes on small 

entities. Third, the Trade Agreements 

Act (Public Law 96–39) prohibits 

agencies from setting standards that 

create unnecessary obstacles to the 

foreign 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 (Public 

Law 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 

final 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 final 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) 

will not have a significant economic 

impact on a substantial number of small 

entities; (5) will not create unnecessary 

obstacles to the foreign commerce of the 

United States; and (6) will 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. As we received no 

comments on the benefit cost 

methodology, we used the same 

methodology here. 

Total Benefits and Costs of This Rule 

These changes will result in cost 

savings to the licensee or permittee, 

Government and customers and 

minimal cost to the first-tier customer if 

it has customers to the launch. 

Cost savings are presented in the table 

below, which is discussed in more 

detail in the paragraphs that follow. 

COST SAVINGS FROM THE FINAL RULE

Average 

7% Present 

value cost 

savings 

3% Present 

value cost 

savings 

Government Cost Savings ........................................................................................................... $138,440 $97,232 $118,092 

Licensee and Permittee Cost Savings: 

No Longer Requesting Waivers ........................................................................................... 136,282 95,716 116,251 

No Longer Obtaining Part 440 Customer Signatures ................................................................. 17,035 11,965 14,531 

Cost Savings from Allowing Signatures on Different Set of Reciprocal Waiver of Claims ......... 365 256 311 

Total estimated cost savings ......................................................................................... 292,121 205,169 249,185 

Minor rounding occurs in summation. 

The final rule might result in minimal 

costs to first-tier customers who will be 

responsible for implementing reciprocal 

waivers of claims 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, the FAA will issue 

4 partial waivers to the reciprocal 

cross waiver requirement per year 

• Without the rule, a licensee or 

permittee will have to obtain some 

signatures from part 440 customers on 

launches unless waivers have been 

issued 

Benefits of This Rule 

The final rule will result in cost 

savings because licensees and 

permittees will no longer have to obtain 

signatures of part 440 customers on the 

reciprocal waiver of claims. Cost savings 

may result because licensees and 

permittees will not have to incur 

expenses to obtain part 440 signatures 

or licensees and permittees will not seek 

waivers from the FAA to the 

requirement that part 440 customers 

sign the reciprocal waiver of claims. The 

estimated cost savings to the licensee, 

permittee, and the Federal Government 

that will result were indicated in the 

table above. 

Also, the FAA estimated a small cost 

savings due to the final rule allowing 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 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., part 440 

customers) with the licensee or 

permittee will shift under the final rule, 

from the licensee or permittee to the 

appropriate first-tier customer. The FAA 

expects the costs the first-tier customer 

will incur under the rule to implement 

the reciprocal waiver of claims to be 

minimal because the first-tier customer 

could modify the templates provided in 

appendices B and C to part 440 and add 

them to the contract that it has with its 

customers. The FAA thinks that this 

will be a one-time cost that could be 

accomplished in a short period of time 

by the company’s in-house lawyers. In 

addition, customers are currently 

required to extend the FAA reciprocal 

waiver of claims obligations to their 


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respective contractors and 

subcontractors, so the FAA does not 

expect the changes to the NPRM to 

result in additional costs. 

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, 

including small businesses, not-forprofit 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 final rule 

will not have a significant impact on a 

substantial number of entities because 

the rule will result in cost savings and 

some minimal costs as described below. 

The FAA solicited comments in the 

NPRM regarding the initial regulatory 

flexibility analysis minimal cost 

determination, and received none. As 

we made the same determination for the 

initial regulatory flexibility analysis, we 

accept this determination for the final 

regulatory flexibility analysis. The 

reasons for the minimal cost 

determination are provided below. 

Cost savings are expected because the 

licensee or permittee will no longer 

have to request waivers or obtain part 

440 customers’ signatures, nor have to 

reopen the original waivers 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., 

part 440 customers) with the licensee or 

permittee will shift under the final rule, 

from the licensee or permittee to the 

appropriate first-tier customer. This will 

be a new requirement on the first-tier 

customer. 

Under the final rule, the first-tier 

customers will be responsible, as 

described above, for implementing a 

reciprocal waiver of claims with their 

customers. These costs will 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 

will 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 will impact a substantial number of 

small entities. To date, the FAA is 

unaware of any small entities who 

would be affected. The agency does not 

know whether in the future there might 

be small entities, that will have to 

implement a reciprocal waiver of claims 

with their customers, but even if there 

were a substantial number of small 

entities, the final rule will 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. 

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 final rule and 

determined that it will 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 

$155.0 million in lieu of $100 million. 

This final 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 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 1050.1F 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 5–6.6 and involves no 

extraordinary circumstances. 

V. Executive Order Determinations 

A. Executive Order 13132, Federalism 

The FAA has analyzed this final rule 

under the principles and criteria of 

Executive Order 13132, Federalism. The 

agency determined that this action will 

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 


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levels of government, and, therefore, 

does not have Federalism implications. 

B. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA analyzed this final 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 is not a 

‘‘significant energy action’’ under the 

executive order and it is not likely to 

have a significant adverse effect on the 

supply, distribution, or use of energy. 

VI. How To Obtain Additional 

Information 

A. Rulemaking Documents 

An electronic copy of a rulemaking 

document may be obtained by using the 

Internet— 

1. Search the Federal eRulemaking 

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

2. Visit the FAA’s Regulations and 

Policies Web page at http:// 

www.faa.gov/regulations_policies/ or 

3. Access the Government Printing 

Office’s Web page at http:// 

www.gpo.gov/fdsys/. 

Copies may also be obtained by 

sending a request (identified by notice, 

amendment, or docket number of this 

rulemaking) to the Federal Aviation 

Administration, Office of Rulemaking, 

ARM–1, 800 Independence Avenue 

SW., Washington, DC 20591, or by 

calling (202) 267–9680. 

B. Comments Submitted to the Docket 

Comments received may be viewed by 

going to http://www.regulations.gov and 

following the online instructions to 

search the docket number for this 

action. Anyone is able to search the 

electronic form of all comments 

received into any of the FAA’s dockets 

by the name of the individual 

submitting the comment (or signing the 

comment, if submitted on behalf of an 

association, business, labor union, etc.). 

C. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act (SBREFA) of 

1996 requires the FAA to comply with 

small entity requests for information or 

advice about compliance with statutes 

and regulations within its jurisdiction. 

A small entity with questions regarding 

this document, may contact its local 

FAA official, or the person listed under 

the FOR FURTHER INFORMATION CONTACT

heading at the beginning of the 

preamble. To find out more about 

SBREFA on the Internet, visit http:// 

www.faa.gov/regulations_policies/ 

rulemaking/sbre_act/. 

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 

amends 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 by adding the 

definitions 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. Amend § 440.17 by revising 

paragraphs (b) through (f) to read as 

follows: 

§ 440.17 Reciprocal waiver of claims 

requirements. 

* * * * * 

(b) The licensee or permittee and each 

of its contractors and subcontractors, 

each customer, and each customer’s 

contractors and subcontractors, must 

enter into a reciprocal waiver of claims 

agreement 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. 

(1) The licensee or permittee must 

extend the reciprocal waiver of claims 

requirements to each of its contractors 

and subcontractors involved in launch 

or reentry services, and each of its firsttier customers. 

(2) Any first-tier customer must 

extend the reciprocal waiver of claims 

requirements to each of its contractors 

and subcontractors involved in launch 

or reentry services, and each of its 

customers. 

(3) Any part 440 customer must 

extend the reciprocal waiver of claims 

requirements to each of its contractors 

and subcontractors involved in launch 

or reentry services, and each of its 

customers. 

(c) For each licensed or permitted 

activity in which the United States, or 

its contractors and subcontractors, is 

involved or where property insurance is 

required under § 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 a licensed activity, in appendix 

C of this part for a 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 to the reciprocal waiver 

of claims, including the United States 

but only to the extent provided in 

legislation: 

(i) Waives and releases claims it may 

have against each other party to the 

reciprocal waiver of claims, 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 or permitted 

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 or permitted 

activities, regardless of fault. A licensee 

or permittee and each first-tier 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 or 

permitted 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 involved 

in launch and reentry services, and, for 

each customer, to its contractors and 

subcontractors involved in launch and 

reentry services, and customers, by 


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requiring them to waive and release all 

claims as follows: 

(A) For each contractor and 

subcontractor 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 each contractor and 

subcontractor of any 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 each contractor and 

subcontractor of the United States, all 

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 § 440.9(c) 

and (e); 

(D) For each part 440 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; 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 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 

and arising out of the indemnifying 

party’s failure to implement properly 

the waiver requirement. The 

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

section to hold harmless and indemnify 

the United States and its 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 § 440.9(e); 

(C) For licensed activity, 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), 

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; or 

(D) The 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). 

(ii) Each first-tier customer must hold 

harmless and indemnify the licensee or 

permittee and its directors, officers, 

servants, agents, subsidiaries, 

employees and assignees, or any of 

them; the United States and its 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 

each first-tier customer’s customers, 

contractors, or 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 and arising out of the 

indemnifying party’s failure to 

implement properly the waiver 

requirement. 

(iii) The Federal Aviation 

Administration of the Department of 

Transportation on behalf of the United 

States, but only to the extent provided 

in legislation, must hold harmless and 

indemnify the licensee or permittee, 

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 

and arising out of the indemnifying 

party’s failure to implement properly 

the waiver requirement 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). 

(d) For each licensed or permitted 

activity in which the United States 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 of this part, 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 or 

property damage sustained by the space 

flight participant, resulting from 

licensed or permitted activities, 

regardless of fault; 

(ii) Assume responsibility for bodily 

injury or property damage, sustained by 

the 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 or property damage, 

sustained by the space flight participant, 


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resulting from licensed or permitted 

activities, regardless of fault; and 

(iv) Hold harmless and indemnify the 

United States and its 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 sustained by 

the space flight participant, resulting 

from licensed or permitted activities. 

(2) The reciprocal waiver of claims 

must provide that the United States: 

(i) Waive and release claims it may 

have against the space flight participant 

for property damage it sustains, and for 

bodily injury 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 

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; 

(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 § 440.9(e); 

(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 the space 

flight participant, 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; 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 the 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 United States 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 of 

this part, 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 or 

property damage sustained by the crew 

member, resulting from licensed or 

permitted activities, regardless of fault; 

(ii) Assume responsibility for bodily 

injury or property damage, sustained by 

the 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 or property damage, 

sustained by the crew member, resulting 

from licensed or permitted activities, 

regardless of fault; and 

(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 

sustained by the crew member, resulting 

from licensed or permitted activities. 

(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 

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; 

(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 § 440.9(e); 

(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 the crew 

member 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; 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 the crew 

member and to agree to be responsible, 

for any property damage they sustain, 

resulting from permitted activities, 

regardless of fault. 

(f) Any waiver, release, assumption of 

responsibility or agreement to hold 

harmless and indemnify pursuant to 

this section does not apply to claims for 

bodily injury or property damage 

resulting from willful misconduct of any 

of the parties to the reciprocal waiver of 

claims, the contractors and 

subcontractors of any of the parties to 

the reciprocal waiver of claims, and in 

the case of licensee or permittee and 

customers 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. 

■ 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 thisllday 

ofllll, 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 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.llissued 

onllll, by the Associate Administrator 

for Commercial Space Transportation, 

Federal Aviation Administration, Department 


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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 other 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 § 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 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. 

(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), 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 any other 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 Licensee, the United States, 

and any other 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. 

(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 § 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 and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

(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 other 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 and arising 

out of the indemnifying party’s failure to 

implement properly the waiver requirement. 

(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 and arising out of the 

indemnifying party’s failure to implement 

properly the waiver requirement, 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), 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 paragraph 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. 


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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 

Launch, Including Suborbital Launch, With 

More Than One Customer 

This agreement is entered into thisllday 

ofllll, 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 

§ 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.llissued 

onllll, 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 other 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 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. 

(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), 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 any 

other 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 Licensee, the United States, 

and any other 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. 

(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 § 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 


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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 and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

(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 other 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 and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

(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 and arising out of the 

indemnifying party’s failure to implement 

properly the waiver requirement, 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), 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 paragraph 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, 

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 ll 

day of llll, 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. ll issued on 

llll, 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 other 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 § 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. 


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55128 Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and Regulations 

Licensee and 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. 

(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 

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 any other 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 Licensee, the United States, 

and any other 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. 

(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 § 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 and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

(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 other 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 and arising 

out of the indemnifying party’s failure to 

implement properly the waiver requirement. 

(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 and arising out of the 

indemnifying party’s failure to implement 

properly the waiver requirement, 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 paragraph 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 ll 

day of llll, by and among [Licensee] 


rmajette on DSK2TPTVN1PROD with RULES
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(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 

§ 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. ll issued on 

llll, 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 other 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 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. 

(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), 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 any 

other 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 Licensee, the United States, 

and any other 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. 

(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 § 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 and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

(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 any other customer as defined by 

§ 440.3 its agencies, servants, agents, 

subsidiaries, employees and assignees, or any 

of them; and any other 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, and 

customers, may have for Property Damage 

sustained by them and for Bodily Injury or 

Property Damage sustained by their 

employees, resulting from Licensed 

Activities and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

(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 and arising out of the 

indemnifying party’s failure to implement 

properly the waiver requirement, 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), respectively, of the Regulations. 

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

Notwithstanding any provision of this 

Agreement to the contrary, Licensee shall 


rmajette on DSK2TPTVN1PROD with RULES
55130 Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and Regulations 

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 paragraph 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, 

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 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 ll 

day of llll, 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 § 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._______issued on 

____________, 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 § 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 § 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 § 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 and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

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

(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 


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Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and Regulations 55131 

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 other 

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, 

and customers, may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Permitted 

Activities. 

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 

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 __ day 

of ____, 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 § 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. __ issued on 

____, 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 other 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 § 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 other 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 § 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, any other 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 Permittee, the United States, 

any other 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. 

(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 § 440.9(c) and (e), 

respectively, of the Regulations. 


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55132 Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and 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 and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

(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 other 

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, 

and customers, may have for Property 

Damage sustained by them and for Bodily 

Injury or Property Damage sustained by their 

employees, resulting from Permitted 

Activities and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

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 paragraph 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 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 __ day 

of ____, 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 

§ 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. __ issued on 

____, 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 other 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 § 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 

other 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 

§ 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 


rmajette on DSK2TPTVN1PROD with RULES
Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Rules and Regulations 55133 

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, any 

other 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 Permittee, the United States, 

any other 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. 

(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, 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 § 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 and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

(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 other 

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, and customers, may have for 

Property Damage sustained by them and for 

Bodily Injury or Property Damage sustained 

by their employees, resulting from Permitted 

Activities and arising out of the indemnifying 

party’s failure to implement properly the 

waiver requirement. 

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 paragraph 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 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), 44701(a), and 44703 in 

Washington, DC, on July 25, 2016. 

Michael P. Huerta, 

Administrator. 

[FR Doc. 2016–18765 Filed 8–17–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1, 301, and 602 

[TD 9782] 

RIN 1545–BK06 

Tax on Certain Foreign Procurement 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations under section 5000C of the 

Internal Revenue Code relating to the 2 

percent tax on payments made by the 

U.S. government to foreign persons 

pursuant to certain contracts. The 

regulations affect U.S. government 

acquiring agencies and foreign persons 

providing certain goods or services to 

the U.S. government pursuant to a 

contract. This document also contains 

final regulations under section 6114, 

with respect to foreign persons claiming 

an exemption from the 2 percent tax 

under an income tax treaty. 

DATES: Effective Date: These regulations 

are effective on August 18, 2016. 


rmajette on DSK2TPTVN1PROD with RULES