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4.4 Industrial and environmental risks
p
the reduction of the discount rate or any other change in regulations related to
the earmarked assets.
Lastly, although the used fuel treatment contracts call for the waste and residues
from these operations to be allocated to and ultimately retrieved by the original
waste producer, as the temporary holder of the radioactive waste produced by
its customers, the group could be considered liable if a customer defaults or files
for bankruptcy.
4.4.1.9.
SPECIFIC COVERAGE RELATING TO THE
ACTIVITIES OF NUCLEAR FACILITY OPERATOR
International nuclear liability law is based on a series of principles that override
general liability law. The operator of the nuclear facility causing the damage has
prime responsibility. This is known as the principle of exclusive liability channeling to
the operator. Its liability is objective (“no fault”), for which there are few exemptions.
The operator of a nuclear facility is therefore required to compensate victims for
the bodily harm and property damage they have suffered. The operator is required
to maintain a financial guarantee, which is generally insurance, to cover its liability,
the amount of which is capped.
This system is defined by international agreements such as the Paris Convention
on Third Party Liability in the Field of Nuclear Energy of July 29, 1960, as amended,
and the Brussels Supplementary Convention of January 31, 1963, as amended,
and the Vienna Convention of May 21, 1963, as amended. In addition, the Common
Protocol of September 21, 1988, which entered into force in France on July 30,
2014, is intended to connect the two systems established by the Paris and Vienna
conventions, thus reducing common law jurisdiction in order to provide better
protection to potential victims of a nuclear accident. In the United States, while
not founded on an international agreement, the Price Anderson Act establishes a
system to channel claims submitted to nuclear operators.
Every country in which the group operates nuclear facilities is subject to one of
these legal constructions.
For purposes of information, the maximum amount of the operator’s nuclear liability
in France until February 17, 2016 was 91.5 million euros per nuclear accident
in a nuclear facility and 22.9 million euros per accident during transportation.
Moreover, in the event of an accident in a regulated nuclear facility in France, the
French government would assume liability above 91.5 million euros, up to a limit of
228.6million euros. Thereafter, the Signatory States to the Brussels Supplementary
Convention would assume liability for the amount above 228.6 million euros, up to
a limit of 381.1 million euros.
The protocols of amendment of the Paris Convention and the Brussels
Supplementary Convention were signed on February 12, 2004 by representatives
of the Signatory States. However, the amended conventions are not yet in effect.
The main amendments will concern an increase in the three tiers of indemnity. The
nuclear operator’s liability would increase to 700 million euros per nuclear accident
in a facility (70 million euros in a reduced-risk facility). This amount would rise to
80 million euros per accident during transportation. The State in which the nuclear
facility responsible for the damage is located would cover the 700-million-euro to
1.2-billion-euro tier. Beyond that amount, the other Signatory States would intervene
up to a limit of 1.5 billion euros. A mechanism to increase these limits would be
provided by the Convention as new States ratify it.
However, without waiting for the Protocol amending the Paris Convention signed on
February 12, 2004 to take effect, the French law no. 2015-992 of August 17, 2015
on the Energy Transition for Green Growth (the “TECV law”) provides for the early
application of the cap on the operator’s nuclear liability. Thus, since February 18,
2016, the operator’s liability is capped at 700 million euros per nuclear accident in
a nuclear facility, at 70 million euros in a reduced-risk facility (article L. 597-28 of the
French Environmental Code) and at 80 million euros per nuclear accident during
transportation (article L. 597-32 of the Environmental Code).
Aside from the above-mentioned increases of the cap on nuclear operator liability,
the TECV law effected an alignment of our domestic lawwith the scope of the Paris
Convention by mentioning the natural persons or physical entities, both public and
private, which operate a nuclear facility falling within the purview of regulated nuclear
facility (INB) or environmentally regulated facility (ICPE) regulations.
Two of the group’s INBs (Socatri and Somanu) and three of its ICPEs (STMI in
Bollène, Cemo in Chalon and Cedos in Sully) appear on the list of sites benefiting
from reduced liability amounts, pursuant to decree no. 2016-333 of March 21,
2016 implementing article L. 597-28 of the Environmental Code related to liability
in the nuclear energy field.
Description of insurance acquired
AREVA has acquired several insurance policies in France, Germany, Belgium and
the United States to cover its regulated nuclear facilities in France and abroad,
and its nuclear transportation operations. These insurance policies comply with
the international conventions governing nuclear operator liability, including their
liability limits.
These insurance policies are reinsured by the nuclear insurance pools of various
countries, including Assuratome in France, DKV in Germany, Syban in Belgium
and ANI in the United States. In addition, AREVA is a member of the European
Liability Insurance for the Nuclear Industry mutual insurance association (ELINI).
Property and business interruption insurance for nuclear
operations
Due to the nature of the potential damage to the facilities, this type of insurance is
available only through the pools mentioned above or through specialized mutual
insurance companies capable of providing the necessary coverage. The limits of
coverage for this type of insurance are based on the estimated replacement value
or on an estimate of the maximum possible loss (MPL). Insurance coverage for
some facilities can be up to 1 billion euros.
Mining operations and AREVA’s US and Belgian sites are not covered by property
and business interruption guarantees for the nuclear process, but rather are covered
by specific programs set up locally in agreement with AREVA’s Risk and Insurance
Department.
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2016 AREVA
REFERENCE DOCUMENT