TABLE III.-POWER DEMONSTRATION REACTOR PROGRAM

Carolinas-Virginia Nuclear Parr Shoals, S. C.
Power Associates.

TABLE IV.-PRIVATELY FINANCED POWER REACTORS

GE-General Electric Co.

III

PROGRAMS SUPPORTING INDUSTRIAL

GROWTH

In addition to programs for developing power and propulsion reactors and for encouraging industrial cooperation in this field, and the broad support which atomic energy research and development offers for industrial growth, the Commission took the following steps during 1958 in support of the atomic energy industry:

a) To encourage industrial participation in the Federal program, the Commission

Proposed that industry provide test reactor services to the Commission for 5 years; (reported in Chapter II, Part One).

Inaugurated a program in which industry would help to reduce the fuel cycle costs of power reactors; (reported in Chapter II, Part One).

Signed contracts for $1 million worth of commercial processing and fabricating of unirradiated nuclear materials pursuant to a policy enunciated in February to promote AEC use of commercial facilities.

b) To assist industrial development and use of atomic energy products, the Commission

Removed restrictions from nonnuclear uses of uranium, and agreed to sell depleted uranium on an unclassified basis;

Agreed to lease as well as sell heavy water for new research, medical, and testing reactors;

Made plutonium-beryllium neutron sources available for commercial activities.

Inaugurated an isotope development program to encourage wider industrial use of radioisotopes and high intensity radiation (see Chapter IV, Part One).

The Commission advanced its studies on peaceful uses of nuclear explosives; acted to clarify provisions for indemnification of public liability connected with nuclear operators; and continued its programs for regulation and inspection, for declassification and distribution of information, and for support of education and training of technical and scientific manpower. A review of patent policy was undertaken.

COMMERCIAL DEVELOPMENT

Broadened Use of Normal and Depleted Uranium

In June 1958 the Commission removed prohibitions in effect since World War II on nonnuclear uses of uranium. This permitted resumption of such industrial applications as uses in ceramic and glass products, primarily as a coloring agent, and in photographic films, negatives, and prints. The Commission also announced that depleted uranium could be sold on an unclassified basis in the form of uranium hexafluoride (UF).

Prices vary with content of fissionable uranium 235, low-assay material selling for $5 per kilogram of contained uranium. By way of comparison, the price of normal uranium varies from $20 to $30 per kilogram as mill concentrates up to $40 or more per kilogram for pure uranium metal in large quantities.

Chemical Processing of Fuel Elements

In March, the Commission established the charges it will make for converting the chemical product of processing used fuel elements, uranyl nitrate, into the form for which the Commission has announced its purchase price, uranium hexafluoride.19 The price for converting plutonium nitrate into plutonium metal was announced previously. These charges complete the Commission's announcement of costs for chemical processing of irradiated fuel elements, as announced on February 18, 1957.21

Base Charges for Lease of Uranium 233 and Plutonium

20

In December, the Commission established base charges at which uranium 233 and plutonium would be made available, for use in research and development, by lease to private individuals and companies in the United States and by sale or lease to foreign governments under agreements for cooperation. The base charges are $15 a gram of uranium 233 and $12 a gram of plutonium; the annual lease charge is 4 percent of the base charge, in each case. Research and development using uranium 233 and plutonium is generally for development of reactor fuels. The charges accordingly are set at levels representing the value of uranium 233 and plutonium as fuel when compared to uranium 235.

See pp. 63-64, Twenty-fourth Semiannual Report to Congress (January-June 1958).
See pp. 41-43, Twenty-second Semiannual Report to Congress (January-June 1957).

21 Financial commitments of private groups and AEC represent estimated expenditures; Department of Defense commitments represent obligations of funds.

Leasing Heavy Water for Reactors

To reduce the cost of heavy-water moderated research, medical and testing reactors, the Commission announced in August 1958 that it would lease heavy water, in quantities of one short ton or more for the initial inventory requirement of a reactor. Prior to this action, Commission transactions had been primarily sales. Heavy water now may be leased at 4 percent a year of the sales price, or purchased at $28 a pound.

The Commission determined also that similar arrangements may be made under the Power Demonstration Reactor Program (see Chapter II).

Commercial Plutonium-Beryllium Neutron Sources

A change in the Atomic Energy Act made at the Commission's request by the 85th Congress (Public Law 85-681) will permit commercial licensing of plutonium-beryllium neutron sources for industrial uses. Previously, the sources could be used only in research.

Commercial Processing and Fabrication

During 1958 the Commission authorized its field operations office managers to go to commercial sources, if available at reasonable prices, for processing and fabricating services for unirradiated nuclear materials to be used in power and test reactors.22 This authorization has resulted so far in 16 companies receiving 49 AEC procurement awards totaling over $1 million for conversion, fabrication, and analytical services involving natural and enriched uranium.

Atomic Energy Products Survey

In October, the Bureau of Census, with the cooperation of the Commission, sent out questionnaires to private manufacturers and processors in the field of nuclear energy to collect statistical information on the extent of industrial activity in certain limited atomic energy fields. In November, the Commission sent out the same questionnaire to its contractor-operators.

Combined public and private statistics, covering the year of 1957, will be issued by the Bureau of Census as the first of an annual series on the atomic energy industry; it will become a part of the Bureau's regular program of statistics, the Census of Manufacturers. In

See pp. 62-63, Twenty-fourth Semiannual Report to Congress (January-June 1958).