Page:United States Statutes at Large Volume 100 Part 2.djvu/562

 PUBLIC LAW 99-499—OCT. 17, 1986

100 STAT. 1664

repealed, there are authorized to be appropriated such amounts as may be necessary to make such payments. "(4) REQUIREMENTS.—An indemnification agreement may be provided under this subsection only if the President determines that each of the following requirements are met: "(A) The liability covered by the indemnification agreement exceeds or is not covered by insurance available, at a fair and reasonable price, to the contractor at the time the contractor enters into the contract to provide response action, and adequate insurance to cover such liability is not generally available at the time the response action contract is entered into. "(B) The response action contractor has made diligent efforts to obtain insurance coverage from non-Federal sources to cover such liability. "(C) In the case of a response action contract covering more than one facility, the response action contractor agrees to continue to make such diligent efforts each time the contractor begins work under the contract at a new facility. "(5) LIMITATIONS.— "(A) LIABILITY

under this subsection shall apply only to response action contractor - liability which results from a release of any hazardous substance or pollutant or contaminant if such release arises out of response action activities. COVERED.—Indemnification

"(B) DEDUCTIBLES AND LIMITS.—An indemnification agree-

ment under this subsection shall include deductibles and shall place limits on the amount of indemnification to be made available. "(C) CONTRACTS WITH POTENTIALLY RESPONSIBLE PARTIES.— "(i) DECISION TO INDEMNIFY.—In deciding whether to

President of U.S.

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enter into an indemnification agreement with a response action contractor carrying out a written contract or agreement with any potentially responsible party, the President shall determine an amount which the potentially responsible party is able to indemnify the contractor. The President may enter into such an indemnification agreement only if the President determines that such amount of indemnification is inadequate to cover any reasonable potential liability of the contractor arising out of the contractor's negligence in performing the contract or agreement with such party. The President shall make the determinations in the preceding sentences (with respect to the amount and the adequacy of the amount) taking into account the total net assets and resources of potentially responsible parties with respect to the facility at the time of such determinations. "(ii) CONDITIONS.—The President may pay a claim under an indemnification agreement referred to in clause (i) for the amount determined under clause (i) only if the contractor has exhausted all administrative, judicial, and common law claims for indemnification against all potentially responsible parties participating in the clean-up of the facility with respect to the liability of the contractor arising out of the contractor's

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