A.    Incorporate new clause H.60, Spent Nuclear Fuels Contingent Fee as follows:

H.60    SPENT NUCLEAR FUELS CONTINGENT FEE

1. Start of Fuel Removal

   FDH agrees that its retention of any fee paid in excess of $1 million for fiscal year (FY) 1999 Spent Nuclear Fuel Performance Agreements and any fee paid in excess of $1 million for FY 2000 Spent Nuclear Fuels Performance Agreements will be contingent upon the successful start of fuel removal from the K Basins by November 30, 2000. In addition, if fuel removal is not successfully started by November 30, 2000, then any fee allocated, in FY 2001, for the start of fuel removal cannot be earned.

   As set forth in the Tri-Party Agreement (TPA) Milestone P-34-16 (as of December 2, 1998) and for purposes of this clause, the start of spent nuclear fuel removal is defined as "The Cold Vacuum Drying (CVD) Facility and Canister Storage Building (CSB) shall be ready to receive spent nuclear fuel. The spent nuclear fuel transport system shall be operable. The K West Basin spent nuclear fuel retrieval system shall begin retrieving, cleaning, and packaging spent nuclear fuel, and the First Multi-Canister Over Pack of spent nuclear fuel will be loaded and transported to the Cold Vacuum Drying Facility for processing."

   If FDH fails to achieve a successful start of fuel removal from the K Basins by November 30, 2000, and therefore FDH fails the condition subsequent to retain the contingent portion of fee paid on Spent Nuclear Fuels Performance Agreements in FY 1999 and FY 2000, then the contingent fee paid will be offset against any FDH fee earned in FY 2001 in accordance with the Schedule below. Furthermore, notwithstanding any other provision in this Contract, including but not limited to Clause H. 41, "Performance, Objectives, Measures, Expectations and Fee Distribution," if FDH’s total earned fee in FY 2001 is insufficient to offset all of the Spent Nuclear Fuel contingent fee paid in FY 1999 and FY 2000, FDH shall reimburse any remaining amount to RL.

   OFFSET SCHEDULE

   Date start of fuel removal is achieved	Offset
   On or Before November 30, 2000	None
   After November 30, 2000 and On or Before January 31, 2001	33% of the contingent fee paid for FY 1999 and FY 2000 Spent Nuclear Fuels Performance Agreements
   After January 31, 2001	100% of the contingent fee paid for FY 1999 and FY 2000 Spent Nuclear Fuels Performance Agreements

2. Changes, and Termination
   1. Identification of Budget and/or Schedule Impacts

      FDH shall treat any DOE direction or action that causes an increase or decrease to the Spent Nuclear Fuel Project budget and/or schedule in accordance with Clause I.74, "Changes—Cost Reimbursement."

   2. Termination

      In the event FDH is terminated for default, any fee that is contingent at that time shall be forfeited.

B.   Add the following sentence to the end of paragraph 5 of Subsection H.41:

Furthermore, for FY 1999, the aggregate of all negative deductions actually invoked shall not exceed 20% of the total available fee for all Performance Agreements, excluding the FY 1999 fee for the Performance Expectation Plan.