FW: Comments to O&M Agreement ,
 Attached are David's insurance comments.  I agree with his mark-ups.  Feel free to contact David directly to discuss.

 -----Original Message-----
From: 	Marshall, David  
Sent:	Wednesday, November 14, 2001 3:53 PM
To:	Nemec, Gerald
Subject:	RE: Comments to O&M Agreement

Gerald,
My comments noted.  A few points:   as I read the contract, client is paying for the insurance cost of BCCKOP, and therefore should get full benefit of those policies, not just limited to claims attributable to BCCKOP's gross negligence/willful misconduct.  BCCKOP is in full control of the Facility and therefore should wear some financial risk for damage to it arising out of the Operating Services.  I have limited this to $100k per occurrence (our deductible for non-power gen assets is $1MM). I've also made them take deductibles under their policies for third party liability and employee injury risks (they had these on us originally), and specified that their GL cover include pollution legal liability (they had this on us also, but since it's a third party risk I think it should stay with the operator).
Call me if I've got this wrong or if we need to discuss further.   

Thx,

David
3-6847
kckrisa@apex2000.net