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Regulation on NuclearRisk CoverCSN

Decree 2177/1967, of the 22nd of July, whichapproves the Regulationon Nuclear Risk CoverPublished in the Spanish Official StateGazette (BOE) nº 223, of the 18th of September 1967

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Preliminary note

This Regulation has been affected by norms thatare posterior to its approval:

• Royal Decree 557/2000 of the 27th of April(BOE of the 28th of April) on theRestructuration of Ministerial Departments,article 4, paragraph 1, letter b), “thecompetencies until now attributed to theMinistry of Industry and Energy... correspond tothe Ministry of the Economy... through theDirectorate-General of Energy”.

• Royal Decree 689/2000, of the 12th of May(BOE of the 13th of May) that establishes the basicorganic structure of the Ministry of the Economy,Single Additional Provision, paragraph 4, “... the Directorate-General of Energy and theDirectorate-General of Mines are abolished, andtheir functions assumed by the Directorate-General of Energy Policy and Mining”.

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Decree 2177/1967, of the 22nd of July,which approves the Regulation on NuclearRisk Cover

Published in the Spanish Official State Gazette(BOE) nº 223, of the 18th of September 1967.

Following the proposal of the Minister ofFinance, and with the substantial agreement ofthe Council of State, and the prior deliberationof the Council of Ministers, in its meeting of the21st of July 1967,

I PROCLAIM:

Single Article. The attached Regulation,concerning the Nuclear Risk Cover, is approved,and all those provisions that are contrary to thecontents of this Regulation are repealed. I proclaim this in this present Decree, signed inMadrid on the 22nd of July 1967.

FRANCISCO FRANCO

The Minister of Finance, JUAN JOSÉ ESPINOSA SAN MARTÍN

Regulation on Nuclear Risk Cover

Title I. On civil responsibility for nucleardamage

Chapter OneGeneral provisions

Article 1The civil responsibility as defined in Article 45,of the Law on Nuclear Energy, of the 29th ofApril 1964, shall be governed according to theprecepts of this aforementioned Law and by thisRegulation, and can only be claimed in themanner and with the limits and conditionsestablished within them.

The obligation to indemnify nuclear damages,imposed upon the operator of a nuclearinstallation, or whatever other installation thatproduces or operates with radioactive materialsor which incorporates equipment that mayproduce ionising radiations shall subsist,independently of the declaration ofresponsibility of a third party.

Are excluded from the precepts of this provisionthose that use, manipulate, or store radioactivematerials, or who have at their disposalinstallations and equipment apt for the emissionof ionising radiations, and that given theintensity of the irradiation field do not suppose arisk, according to the standards that areestablished accordingly.

Article 2The obligation to respond for nuclear damagescannot be the object of private agreements thatmodify or restrict, against the interests of a thirdparty, the rights recognised by the Law, in thisRegulation and in the complementary provisions.

In any case the pacts that alter the nature or thescope of the operator’s responsibility, or that arecontrary to whatever provisions are establishedregarding insurance and other methods ofguaranteeing the responsibility contained inTitle II and III of this Regulation shall neitherbe valid nor effective.

What is contained in the previous paragraphshall be understood, without prejudice to thecontractual obligations contracted by thirdparties, in the case of accidents, before theresponsible operator.

Chapter TwoOn nuclear damage

Article 3Shall be considered as nuclear damages thosecontained in point 16 of Article 2 of the Law, be

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they immediate of deferred, and be they causedby an accident in a nuclear installation or by thedevelopment of activities that employradioactive materials or devices that maygenerate ionising radiations.

Article 4The following, shall not be be liable forindemnity in the manner foreseen in the Lawand in this Regulation:

1º. The damages due to nuclear accidents thatare directly related to armed conflict, hostilities,civil war, insurrection or natural catastrophes ofan exceptional nature.

2º. The natural damages that may result fromthe application of radioactive substances topersons subject to therapeutic treatment.

3º. The damages that may be suffered in theirperson by the employees or dependants of theexploiter, qualified as occupational accidents orprofessional illness, according to articles 84 and85 of the text, comprising various articles, of theLaw on Social Security.

4º. Those damages caused in the installation itselfor in the devices that produce ionising radiations,as a result of an accident in the means oftransportation, and in general in the real estateelements, whoever the title-holder may be in theservice of the exploiter or of the installation.

Article 5When given a nuclear accident, nuclear eventsthat are liable to indemnity, according to thisprovision, concur together with others due todifferent causes, the proof that the demandedindemnity is not contemplated in the Law onNuclear Energy or in this Regulation, shall bethe responsibility of the exploiter, the insurer orthe title-holder of any other guarantee againstwhich the claim is presented.

Non-nuclear damage, and nuclear damage thatis not liable to indemnity, according to what isestablished in the previous article, shall beregulated according to the provisions of ordinarylaw, or special law, as applicable.

Chapter ThreeOn the responsible party

Section 1. On the identification of the responsibleparty

Article 6The obligation of reparation for nuclear damagesaccording to what is established in Article 45 ofthe Law, and in this present Regulation, falls,exclusively, upon the exploiting title-holder ofthe administrative authorisation, for the exerciseof the activity, without prejudice to what isestablished in the following article.

The lack of an administrative authorisation, ofinsurance or of any other financial guarantee orits insufficiency, in terms of covering the civilresponsibility of the exploiter, shall not alter theobligation in case of a nuclear accident.

Article 7The person who transports nuclear substancesthrough waterways, by land, sea or air, and theperson who although not fully qualified as anexploiter, according to number 14 of Article 2 ofthe Law, handles radioactive waste, may beconsidered as an exploiter in the cases foreseen inthis provision and with the conditions requiredunder Article 50 of the Law, if in the exercise ofthe activity nuclear damages should arise, fromwhich the obligation to indemnify should beborn, that originate in the transported substancesor the radioactive waste that is manipulated.

All those who participate as contractors of aspecific operation, or as transportation andcarriage brokers, as referred to in Article 379 of

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the Commerce Code, shall be understood to beincluded in the previous paragraph.

Article 8The exploiter shall be responsible for the nucleardamages that are liable for indemnity, in case ofaccident, whether the nuclear substances are locatedin their exploitation site or beyond it, accordingto what is established in the following article.

The exploitation site shall be understood to meanthe area that a nuclear installation occupies.

Article 9When the nuclear substances are situatedoutside the exploitation site, the responsibilityof the exploiter, whose installation is based onnational territory, shall subsist if the accidenttakes place in Spain, even if these substanceshave been abandoned or lost, or if the exploiterhas handed them over, whatever the object of thetransference, to a third party to whomresponsibility can not be demanded, accordingto the norms of this provision.

Robbery or theft of nuclear substances does notexonerate the exploiter of the responsibility forpersonal or material damages originated by thestolen or robbed substances, on persons that didnot participate in their subtraction, withoutprejudice to the rights that may correspond tothe exploiter according to ordinary law.

In cases of abandonment or loss, and in those ofrobbery or theft the responsibility established inthis article shall subsist for ten years, startingfrom the date in which such events arecommunicated to the competent authorities.

Article 10The transfer of nuclear substances from oneinstallation to another, within national territory,or its transfer outside national territory, shallonly exempt the party that is obliged as an

exploiter of the installation that issued themerchandise from responsibility in case ofaccident if this party is capable of proving,irrefutably, that another exploiter has assumedthe aforementioned responsibility.

Article 11If the nuclear substances are dispatched, fromanother country, to one or various nuclearinstallations based on national territory, theexploiter or exploiters who are to receive theseconsignments shall respond for all accidents thatmay take place in Spain, before they reach theirfinal destination, from the moment that theytake charge of the aforementioned substances.

The nuclear substances sent to one singleexploiter within the same consignment, shall beassumed to be destined to one sole installation.

What is established in this article is understoodwithout prejudice to whatever may be agreed onin international covenants signed and ratified bySpain or in validly celebrated pacts thatsubstitute responsibility.

Article 12The exploiter exempted from the obligation toindemnify nuclear damages, when theresponsibility falls upon the carrier, according toArticle 50 of the Law, shall only be considered tobe free from this obligation before third partiesif there is a pact of substitution, recorded in apublic deed, a charter-party audited by a shipbroker or a document authorised by a Spanishdiplomatic or consular civil servant servingabroad and with the condition required in thefirst paragraph of Article 15 of this provision.

Article 13The pact that substitutes responsibility,celebrated between the exploiter and the carrierof nuclear substances, shall be considered valid

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from the date in which the document referred toin the previous article is extended.

If the date and time that the substitution shall takeeffect is omitted, the responsibility of the carriershall be considered as assumed from the moment themerchandise is received without complaint, for theperformance of the carrier commission. The carrier’sresponsibility shall terminate, unless otherwiseagreed on, from the moment the merchandise ishanded over to the addressee in the conditionsagreed upon with the carrier, or when applicable,with the consignee upon whom the obligation toindemnify for nuclear damages falls on.

Article 14The condition of exploiter, proceeding from asubstitutionary pact that frees another exploiterfrom the responsibility that has been acquiredby the person who manipulates radioactivewaste, according to Article 50 of the Law, and inthe conditions that this precept establishes, shallstart to count from the date freely agreed uponby the parties, recorded and certified before anotary, and for the agreed length of time.

Article 15The consequences of the pacts referred to in theprevious articles shall only negatively affectthird parties if they have been celebrated, withthe Ministry of Finance’s prior authorisation,before the accident.

Nonetheless, these pacts shall be beneficial tothird parties, although no mention be made ofthem in any of the documents referred to inArticle 12, if in the bill of lading, or theconsignment paper, the carrier recognises orassumes responsibility.

Section 2. On the scope of responsibility Article 16The exploiter of a nuclear installation shallrespond for the nuclear damages that are liable

to indemnity, derived from any accident, in themanner established in the Law and in thisRegulation.

The exploiter’s obligation shall be understood tobe limited to 300 million pesetas per accidentfor every operational installation, whatever thenumber of persons affected and the type ofnuclear damages suffered by them.

Article 17The national, or foreign, exploiter of a nuclearship or aircraft, shall respond for the nucleardamages caused by these during their transitthrough Spanish territorial waters, or in theirover flight over national territory, up to theamount that shall be established by Decree,following the proposal of the Ministry ofFinance, taking into account the internationalconventions ratified by Spain.

The exploiter that produces radioactivematerials, who works with them or who ownsdevices that may produce ionising radiationsshall respond to the nuclear damages caused by anuclear accident, with a minimum amount ofone million pesetas.

Article 18The limit for responsibility, as mentioned inArticle 16, shall be increased automatically tothe level established in the internationalconventions endorsed by Spain, from themoment that the instrument of ratification isexchanged or the deposit of adhesion made,when applicable for accidents that take place onnational territory.

This limit shall also be considered as modified inthe case of transit of nuclear substances throughnational territory when the foreign responsibleparty belongs to a country whose legislationestablishes greater responsibility for the Spanishexploiters, except as is established in the

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international conventions endorsed and ratifiedby Spain.

Article 19The civil responsibility for the exploiter of anuclear installation or of whatever otherinstallation that produces or works withradioactive materials, or which includes devicesthat may produce ionising radiations, for non-nuclear damages, or nuclear damages that arenot liable to indemnity, shall be determinedaccording to the corresponding legal norms, andnot to the precepts of the Law on NuclearEnergy, that relate to nuclear damages, as theyare defined in paragraph 16 of Article 2 of theaforementioned Law.

Section 3. On the concurrence of responsibilities Article 20The responsibility for damages caused in onesingle accident by nuclear substances of variousinstallations, be they owned by one or severaltitle- holders, shall comprise the sum thatcorresponds for every one of these installations.

If the amount of damage caused by the nuclearsubstances of each installation cannot bedetermined precisely, it shall be assumed thatthe respective exploiters concurred in themequally. In this case every one of the exploitersshall respond jointly for the totality of thenuclear damages caused, up to the limit of theirrespective responsibility.

Chapter FourOn the victim

Article 21Shall be considered victims, with the right toindemnity, all those who as a result of a nuclearaccident suffer in their person or property damagesthat fulfil the criteria for indemnity according toChapter Two, Title I of this Regulation.

Article 22The immediate damages, as defined in Article46 of the Law, caused on persons, shall be totallyindemnified, whatever the number of victims ineach accident, or the extent of the damagesuffered by them.

For the total indemnity of the personal deferreddamages, the last paragraph of Article 66 of thisRegulation shall be applicable.

Article 23If the sum of the indemnity payments that mustbe satisfied for personal and material damages,exceeds the amount of the responsibilityattributable to the obliged exploiter orexploiters, the difference shall be settledeffectively through the legal means that theState may arbitrate to this effect.

Article 24When damages on persons and propertyconcur, the latter shall only be indemnified inthose cases where the amount attributable tothe personal damages suffered in the accidentdoes not reach the established limits regardingthe responsibility of the exploiter by thisprovision.

Article 25When the damages caused relate exclusively tomaterial goods, whose amount exceeds theextent of responsibility, or when given theirconcurrence with personal damages, they cannotbe fully compensated for, the injured partiesshall receive a proportional part depending onthe importance of the damages on each of thematerial goods.

This same rule of proportionality shall beapplicable, where appropriate, for the paymentin advance of the total indemnity for damagescaused on persons when they are not totally

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indemnified according to the methods referredto in Article 23 of this Regulation.

Article 26In no case can the indemnity for personaldamages be inferior to that for occupationalaccidents, which would have corresponded to avictim, subject to labour law.

Article 27Shall not be included within the concept ofdamages that are liable to indemnification, tothe effects of the limits on the responsibility ofthe exploiter, the interests of the indemnity assuch, or the legal costs that may arise from theaccident.

Article 28The indemnities that shall be perceived by thevictims of a nuclear accident must never exceedthe total amount of the damages and injuriesreally suffered.

The right of the victim to be indemnity shallsubsist even if the damages were to be the objectof coverage through a different insurance policythan that regulated in this Regulation.

Article 29The action of claiming the indemnity for nucleardamages shall correspond to the victim itself, orits trustees, who can exercise it personally, or bylegal or voluntary representation. All those thirdpersons entitled by a transfer or by thesubrogation of the rights of the victim, shall alsobe able to promote this action.

Article 30The action shall expire after ten years, for claimsregarding indemnity for immediate damages.For claims regarding indemnity for deferreddamages, the expiration deadline shall be oftwenty years, according to what is established inArticle 67 of the Law.

Title II. On the form for the responsibilityguarantee

Chapter OneGeneral provisions

Article 31All those who as a result of their activity may bedeclared responsible for nuclear damages,according to what is established in the Law onNuclear Energy, and by this Regulation, isrequired to constitute a sufficient guarantee tobe able to respond within the extent and in theterms laid out in this Title, regarding thepayment of the indemnities that in case of anaccident can be demanded of them.

The State shall be exempted from this obligationwhen it acts as an exploiter.

Article 32The person obliged to constitute the guaranteemust do so according to one of the methodsforeseen in Article 56 of the Law. The guaranteecan also be constituted by using several of themjointly, as long as the sum of the guarantees isnot inferior to the total amount of the requiredcover, and with the prior express authorisation ofthe Ministry of Finance.

Article 33The necessary cover to guarantee responsibilityfor immediate nuclear damages deriving from anuclear installation or the transportation ofnuclear substances shall be the one indicated inArticle 57 of the Law, and in Article 16 of thispresent Regulation.

That of the exploiter of a nuclear ship or aircraftshall be that which corresponds to what isestablished in paragraph 1 of Article 17 of thisRegulation.

That of the exploiter of radioactive installations,of those that handle waste of this nature or those

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derived from the transportation of radioactivematerials shall have the corresponding reach, asprovided for in paragraph 2 of theaforementioned Article 17 of this provision.

Article 34The cover for the exploiter’s civil responsibilityin each accident shall be applied in its entiretyto respond to the obligations for whose securityit was constituted.

Chapter TwoOn the civil responsibility insurance for nucleardamages

Section 1. On the insurance contract Article 35The contract for Civil Responsibility Insurancefor Nuclear Damages shall be regulatedaccording to the legal pacts established in eachinsurance policy or document.

Those stipulations that are contrary to the normsset forth in this Regulation, or in their defect, tothose that regulate private insurance in general,as well as to those that are dictated in this regardby the Ministry of Finance, in matters of itscompetence, shall not be valid.

Article 36The provisions included in this section do notaffect the insurance contracts that have as theirobject the damages that may occur in the nuclearor radioactive installation themselves, in themeans of transportation of substances of thistype or that refer to different responsibilitiesthan those that according to Article 45 of theLaw fall upon the exploiter.

Article 37The obligation of indemnifying nuclear riskguaranteed by means of an insurance policy maynot be carried out in a manner different to thatforeseen in this provision.

The existence of the insurance shall beaccredited with the insurance policy, adjusted tothe conditions that the Ministry of Financedetermines.

In the transportation of nuclear or radioactivesubstances, it must be justified by means of acertificate issued by the insured party in the termsthat the department, itself, shall determine.

The certificates issued to foreign carriers byinsurance entities that are not authorised tooperate in Spain must identify the person orpersons who reside in the country, who with anauthorisation from the aforementioned Ministryshall assume the obligations deriving from allaccidents that may take place on Spanish territory.

Article 38The exploiter shall concert the contract for CivilResponsibility Insurance for Nuclear Damagesseparately, for each of the installations that theexploiter may be, or will be the title-holder of.

Any other person, who may have an interest ininsuring the responsibility, may also arrange it.This situation shall be mentioned expressly inthe contract.

Article 39The contract shall have a limited duration, or itmay be indefinite.

If it is established for a determined time period,this may not exceed three years.

Any contract celebrated without a specific timeconstraint, shall oblige its contractors over theperiod of a year, after which it shall beunderstood to have been extended for successiveone year periods, counting from the date thepolicy expires, if one of the parties does notinform the other by certified mail at least twomonths in advance of the aforementioned date of

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the intention to consider the termination of thecontract.

When the contract relates to the transportationof nuclear or radioactive substances, its durationshall be the same as that of the transport that isbeing carried out.

Article 40The insurer shall be obliged, on the basis of theinsurance policy for nuclear risk, before thevictim and its trustees, in the same cases andterms as the exploiter.

Article 41The insurance premium shall be paid in advancebefore the day it expires and shall be indivisibleduring the period of time that is established inthe contract.

The insurer shall be able to fraction thecollection of the corresponding premium, forcontracts whose duration exceeds one year, inseveral annual periods.

Article 42Any delay in the payment of the premium or thepremium’s fractions does not authorise theinsurer to suspend the cover, although it doesgive the insurer the right to resolve the contract.

The resolution shall only be effective if theinsured party, having been requested by certifiedmail, or other certified instrument, to pay thepremiums, does not make these payments in thethirty days that follow the date of the claim, andwithout prejudice to what is established inparagraph 1 of Article 50.

Article 43In the case foreseen in the previous article, theright of the insurer to demand that the insuredparty pays the premium or premiums in arrears,and the premium’s pro rata, corresponding to

the period of risk that may have elapsed as aresult of what has been established in theprevious articles, shall prevail in the termsestablished by the Code of Commerce.

Article 44Any delay in the payment of the premium, or itsfractions, shall oblige the insured party to satisfythe interests from the date it was due.

The right of the insurer to demand the paymentof the premium or premiums in arrears shall bepreserved, in the terms established by the Codeof Commerce.

Article 45The insured party or the party that wishes to beinsured must provide the insurer with all the datathat is requested from it, and that may benecessary to understand the risk, and must alsoallow for the required verifications be carried out.

Furthermore, the insured party must inform theinsurer, with the least possible delay, of anyevents or circumstances that may modify theinsured risk, throughout the life of the contract.

Article 46Any changes in the circumstances of the risk, byaccident or by the actions of a third party, shallallow the insurer, exclusively, to demand fromthe insured party the corresponding supplementto the premium.

If the modification were to be attributable to thewill of the insured party, it must report thisevent, in advance, to the insurer in order for it toadjust the premium to this new risk, according tothe conditions expressed in the rate approved bythe Ministry of Finance for the insuring Entity.

If the insured party should refuse, without anyjustification, to readjust the conditions of thepolicy, in those cases where the risk has

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increased, the insurer may rescind the contractinforming the insured party, by certified mail, ofthis decision.

Article 47The insured party must inform the insurer of allnuclear accidents, if they may give rise to itsobligation to indemnify, in the five days thatfollow its occurrence, or the knowledge of itsoccurrence, and must adopt, in all cases, thenecessary emergency measures required to limitthe effects of the accident.

Article 48The insurer, within the fifteen days that followthe accident, may be able to rescind the contract,by restoring, to the insured party, theproportional part of the received premium,which corresponds for the period of time that isnot covered.

This rescission shall not produce any effectsuntil two months have elapsed since the date inwhich the right referred to in the previousparagraph has been exercised.

Within the policy, it may be agreed that thecontract shall be considered to be resolved whenthe amount of the satisfied quantities, orawaiting payment, in name of the insuredexploiter, added to the amount expected fromthose awaiting settlement, where applicable,determined according to the norms that theMinistry of Finance may dictate, should exceedthe sum freely agreed to by the parties.

The aforementioned sum shall in no case beinferior to twice the amount of the responsibilitythat may be demanded from the exploiter foreach accident.

Article 49What is established in the previous article, shallnot apply in the case of transportation of nuclear

or radioactive substances, whose contract cannotbe rescinded during the period of time that isreferred to in the last paragraph of Article 39 ofthis present Regulation.

Article 50The insurer may not suspend the coverage, untiltwo months have elapsed since the date in whichthe Ministry of Finance is informed of the desireto consider the cover terminated, expressing thereasons for its decision and the date in which itis to be effective.

The insurer must also inform the Ministry ofFinance, within a maximum delay of ten days, ofany event or circumstance that may determine areduction in the cover, beneath the limitsestablished for the exploiter’s responsibility.

Article 51The franchise that corresponds to the ensuredexploiter, as established in Article 63 of the Law,shall be of 5% of the indemnities that maycorrespond for each nuclear accident. The insurermust, nonetheless, make those indemnities thatmay correspond to the injured parties effective,without deducting the amount of the franchise,but it shall maintain the right to reimburseitself on account of the insured party for thequantities, that in this concept, it may havesatisfied.

The Ministry of Finance is authorised to modifythe percentage, established in this article, whenthe circumstances should make it advisable.

Article 52The risk cover for the exploiter’s responsibilityregarding the transportation of nuclearsubstances, as well as that derived from accidentsdue to nuclear substances or radioactivematerials that may have been stolen or robbed,or that may have been the object of

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abandonment or loss, may be convened throughan independent policy.

Section 2. On the insurer Article 53The coverage of nuclear risk, by means of aninsurance policy, constitutes an independentbranch, and for its exercise the insuring entitiesmust obtain an authorisation from the Ministryof Finance and be inscribed in the SpecialRegister that is kept in the Directorate-Generalof Insurance.

The capital stock and the inscription deposit tobe entitled to operate in this branch shall bethose established in Article 6 c), and in Article 7c) of the Law for the Organisation of PrivateInsurance, of the 16th of December 1954.

Notwithstanding, what is established in theprevious paragraph, the insurance entities,inscribed in the Special Register for civilresponsibility insurance on the date of the entryin force of Law 25/1964, of the 29th of April, onNuclear Energy, shall be able to function withinthis branch of insurance by adjusting themselvesto the conditions established in paragraph 1 ofthis Article, and in Article 58 of theaforementioned Law on Nuclear Energy, withinthe capitals and deposits regime that they mayhave on this date.

Article 54The insurance entities shall submit for approvalby the Ministry of Finance the models for thepolicies that they propose to use in theiroperations in this branch, the technical notesand the premium rates, without whoseagreement they may not be used, as well as thereserve regime, the co-insurance framework, andthe contracts for reinsurance.

The Ministry of Finance may determine thelimits and percentages of the different concepts

that are incorporated in commercial premiums,

as well as the surcharges that may be charged on

these.

Shall also be submitted for this aforementioned

approval, any modifications whose introduction

is contemplated, for these matters.

Article 55The insurance entities authorised to operate in

this Branch, may join together for the purposes

foreseen in this Regulation.

The legally constituted groups or groupings,

once the statutes have been approved by the

Ministry of Finance, shall have their own legal

status, regarding the judicial and extra judicial

representation of the collective and individual

interests of their components, without prejudice

to the compliance, by its components, of those

obligations that the existing law may impose on

them, regarding the insurance operations in

which they intervene.

Article 56The pacts that govern the established groupings

must be submitted for the Ministry of Finance’s

prior agreement, which must also be informed

by these groupings of the names of the entities

that compose them, and the percentage of the

participation that corresponds to each one of

them in terms of the total covered risks.

Article 57The group or groupings that are created in this

manner, shall be able to, in representation of all

the entities that compose each one, accept the

risks whose coverage constitutes the object of

this provision and to transfer as reinsurance, the

part of the risk that they considered adequate,

without prejudice to what is established in

Article 54 of this Regulation.

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These groupings shall be subject to the controlof the Directorate-General of Insurance in theterms that are established for insurance entities,in the existing law on private insurance.

Article 58The insurance entities that operate in thisBranch, be they grouped or not, to cover therisk, are obliged to constitute, beyond thereserves foreseen in Article 21 of the Law onPrivate Insurance, of the 6th of December 1954,a special technical reserve, whose quantity,investment and application shall be determinedby the Ministry of Finance, who, considering theexperience in this Branch, may alter theestablished annual percentage, or suspend, whennecessary, the amount of this reserve, which shallbe linked exclusively to the obligations of theentity towards the victims of nuclear accidents.

Chapter ThreeOn other financial guarantees

Section 1. On the constitution of the deposit Article 59The obligation imposed in Article 55 of the Lawon Nuclear Energy, on the exploiter of a nuclearinstallation or any other installation thatproduces or works with radioactive materials orwhich incorporates devices that may produceionising radiations can be fulfilled through theconstitution in the Spanish GovernmentDepositary, at the disposal of the Ministry ofFinance, of a deposit in cash and in Spanish legaltender, attached to the payment for immediatedamages that the aforementioned exploiter maybe responsible for in the context of a nuclearaccident.

This deposit can also be constituted by means ofpublic assets of the Spanish State, domiciled inSpain, or in industrial or commercial assetswhose trade is authorised in the Spanish StockExchanges, that offer, according to the Ministry

of Finance, sufficient guarantees, in each case,for the end to which they are destined.

Article 60The amount of the deposit mentioned in theprevious article, shall not be inferior to the limitof responsibility that can be demanded from theexploiter for a nuclear accident.

When it is composed of stocks and shares, theseshall be calculated at the maximum of their lastofficial quote in the previous financial exercise.

In no case, can amortized value be admittedabove par.

Article 61This deposit shall be destined exclusively for thepayment of the indemnities that may correspondto the victims of nuclear accidents and whichcan be demanded from the exploiter, in whosename the deposit is constituted, and it cannot bedisposed of without an order from the Ministryof Finance.

Section 2. On other types of guarantee Article 62The exploiter of a nuclear installation or anyother installation that produces or works withradioactive materials or which incorporatesdevices that may produce ionising radiationsmay comply with the obligation imposed inArticle 55 of the Law on Nuclear Energy, of the29th of April 1964, by means of a joint warrantygranted by an official, or private, bank inscribedin the General Register of Banks and Bankers,and for an amount equivalent to the amount ofthe requested cover.

This cover shall be of an exceptional character,and may be admitted or refused freely by theMinistry of Finance, taking the circumstancesthat may exist in each case. The existence of thiswarranty shall be accredited by means of a

(*) New wording given by Decree 742/1968, of the 28th of March.

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document issued according to the terms that theaforementioned Department shall determine.

The obligation imposed upon the insurer inArticle 50 of this Regulation shall not beapplicable to the warrantor who is referred to inthe first paragraph of this present article.

Chapter FourOn the replenishment of guarantees

Article 63The guarantees for the civil responsibility of theexploiter in its different forms must bereplenished by the title-holder when as a resultof a nuclear accident, or due to othercircumstances, they are insufficient to respondto the obligation for whose security they havebeen constituted.

The Ministry of Finance, shall determine theform and the conditions in which thisreplenishment shall take place.

Title III. On the State’s intervention in thereparation for nuclear damages

Chapter OneGeneral provisions

Article 64The State shall participate in the reparation ofnuclear damages in the terms foreseen in thistitle, and within the limits and with theconditions established in it, except for what isestablished in the following article.

Article 65The State’s obligations in case of a nuclearaccident due to the risks derived from its nuclearinstallations, ships and aircraft and in thoseactivities that produce ionising radiations shall

be identical to those of any other exploiter. Thepayment of the indemnities that it may beobliged to award in this sense shall besubstantiated according to the proceduresestablished in Article 40, and following, in theLaw on the Legal Status of the StateAdministration.

Chapter TwoOn the participatory systems

Article 66The State shall indemnify, in the mannerforeseen in the previous article, the nucleardamages occurred as a result of accidents, whenit has the consideration of exploiter, according toArticle 54 of the Law on Nuclear Energy.Similarly, it shall arbitrate the necessarymeasures to indemnify the immediate personalinjuries that result from a nuclear accident, ifthey exceed the limits for the exploiter’sresponsibility.

“The State may only repeat according to whathas been satisfied in previous cases, in thosewhere the exploiter or insurer who is obliged toindemnify is allowed to perform such repetition,and only as regards those persons against whomsuch faculties can be exercised”(*).

Through the Government the necessarymeasures shall be adopted for theindemnification of the deferred damagescontemplated in Article 46 of theaforementioned Law.

Article 67The Ministry of Finance shall arbitrate thosesystems or procedures that it considersopportune for the satisfaction of the amountsthat the State must pay in concept of reparationsfor nuclear damages, independently from the

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civil responsibility in those cases foreseen in the

Law on Nuclear Energy, and in the International

Conventions ratified by Spain.

Chapter ThreeOn the Directorate-General of Insurance

Article 68The Directorate-General of Insurance, without

prejudice to the performance of its own

functions, shall manage those attributed to the

Ministry of Finance by the Law of Nuclear

Energy, in this Regulation, and in all those other

provisions that deal with nuclear risk cover.

Article 69The Directorate-General of Insurance shall

supervise the compliance with the norms

included in this present Regulation, and in those

other provisions that are related to this matter.

This function shall be carried out through the

Technical Inspection of Insurance and Savings of

the Ministry of Finance.

Chapter FourOn the Consortium for Insurance Compensation

Article 70The Consortium for Insurance Compensation, a

body that depends on the Directorate-General of

Insurance, shall perform the following functions:

a) Participate in the nuclear risk cover assumed

by the insurance entities in those cases where the

combination of these does not reach the

minimum limit of civil responsibility foreseen

in the Law on Nuclear Energy.

b) To make the payments that it is responsible

for, for those obligations that correspond to it, in

compliance with the previous paragraph, and to

demand the payments that may be relevant.

c) To perform all those functions that are

assigned to it in Articles 60 and 61 of the Law,

subjecting itself to the norms that the Ministry

of Finance establishes.

d) To carry out reinsurance operations, in the

manner that the aforementioned Ministry, may

determine.

Article 71The Department created in the Consortium for

Insurance Compensation, according to Article 62

of the Law on Nuclear Energy, shall be named the

Special Department for Nuclear Risks, and shall

enjoy full financial independence, as well as in its

assets, statistics and accountancy, with regards to

the rest of the departments that compose this

Body. The compensation of balances among the

different sections will not be allowed.

Article 72(*)

Article 73(*)

Article 74Shall be competences of the Plenary:

a) To interpret, within the scope of its functions,

and to apply those provisions relative to nuclear

risk cover.

b) To agree on the alienation of goods and assets

assigned to the Special Department for Nuclear

Risks.

(*) Article expressly repealed by the Repeal Provision of Royal Decree 731/1987, of the 15th of May.

Note: The current organisation of the Consortium for Insurance Compensation, is regulated in Articles 12 to 20 of its Regulation,approved by Royal Decree 731/1987, of the 15th of June, and in Royal Decree 958/1986, of the 25th of April.

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c) To agree on the acquisition of goods andassets, with funds from the Department foramounts greater than 1.000.000 pesetas.

d) To agree on the costs of a general, andextraordinary, nature that may be necessary forthe control of operations from the moment theyare contracted until their settlement, in case ofaccident, including their processing, settlement,and recovery.

e) To accept the risk cover, following its study,and at the request of the Body’s Direction.

This faculty can be delegated, in the conditionsthat the Board itself establishes, to theConsortium’s Direction.

f) To resolve the accident claims whose amountexceeds 1,000,000 pesetas.

g) To authorise the reinsurance and reassignmentcontracts.

h) To exercise the veto faculty established inArticle 61 of the Law on Nuclear Energy.

i) To issue circulars and norms of a generalcharacter.

j) To be informed of all issues that are attributedto it especially through this present Regulation,as well as those that are remitted to it directly bythe Directorate-General of Insurance.

k) To agree for their presentation before theMinister of Finance on all the policy models thatthe Consortium expects to use, as well as thetechnical notes and the premium rates.

The duties of the Permanent Commission shallcomprise:

a) To agree on those acquisitions of goods andassets that must be carried out through the

Special Department for Nuclear Risks, up to thesum of 1,000,000 pesetas.

b) To resolve the accident claims whose amountdoes not exceed 1,000,000 pesetas.

c) To perform in delegated functions thefaculties that are of the Plenary’s competence.

d) To assist the Director of the Consortium inmatters, that although within its sphere ofcompetence, are considered, because of theirimportance, as worthy of being submitted for itsconsideration.

Article 75For the fulfilment of its objectives, the SpecialDepartment for Nuclear Risks shall dispose ofthe following financial resources:

a) The premiums that correspond to the riskscovered directly by the Consortium, as well asthose of reinsurance, where applicable.

b) The recoveries for accidents, the commissionsand patrimonial incomes of the goods assignedto this Department.

c) The assignments that are annually allocated toit in the General State Budgets.

In cases where the previously mentionedfinancial resources were to prove insufficient toface the assumed obligations, the Ministry ofFinance, shall be specially capacitated toauthorise the opening of credit accounts by theConsortium for Insurance Compensation, in theBank of Spain, for the amounts and durationthat it considers necessary.

Article 76According to what is established in Article 12 ofthe Law of the 16th of December 1954, on theConsortium for Insurance Compensation and

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under what is foreseen in paragraph 2 of Article230 of the Law on the Reform of the Tax System,41/1964, of the 11th of June, shall be exemptedfrom all types of tax those premiums that areperceived by the Consortium, the operationsthat it may perform and the documents that maybe subscribed by this Body and the Bank ofSpain, according to which credits are formalisedin favour of the Consortium, its renewals, theexpress or tacit extensions and whatever actionsand contracts that are reflected in theaforementioned documents and policies.

Article 77Against the agreements of the Board ofGovernors of the Special Department forNuclear Risks, in all those cases that are notincluded in Article 66, and following, of theLaw on Nuclear Energy, a reposition appeal maybe presented before the Consortium forInsurance Compensation, in the monthfollowing the notification or handing over of thedocuments by the Mail Service or other similarservice.

The resolution of the aforementioned Body thatputs an end to the reposition appeal can beappealed before the Insurance Arbitration Courtwithin an, un-extendable, period of sixty naturaldays, starting from the date of notification, andcarried out in the same form indicated in theprevious paragraph, this appeal shall be

substantiated by the procedures established inChapter Two of the Regulations of theaforementioned Court, approved by a MinisterialOrder of the 10th of August 1953.

The reposition appeal, shall in any case, be anindispensable process before moving on to theInsurance Arbitration Court.

Once sixty natural days have elapsed, after thepresentation of the filing in which the repositionappeal is presented, without any notificationregarding the resolution on this appeal, it shall beunderstood to have been denied, and this willinitiate the time period for the presentation of anappeal before the Insurance Arbitration Court.

Final Provisions

1º. The Government shall be competent,following the proposal of the Minister ofFinance, and with the prior report from theMinistry of Industry, to qualify as a naturalcatastrophe, of an exceptional character, to theeffects of what is established in paragraph 1 ofArticle 4 of this present Regulation, any nuclearaccidents that occur, which due to theircircumstances merit this qualification.

2º. The Ministry of Finance is authorised todictate the necessary provisions for thedevelopment and implementation of what isestablished in this present Regulation.