It would be difficult to ascertain what percentages of the total expenditures the foregoing figure represents. I believe that I could safely say that from 500 to 1,000 more persons could have answered this questionnaire if we had used more time for soliciting the information and in turn the people would have taken their time to answer. How much this would have increased the figure is purely conjecture. This figure does represent approximately one-third of the number of claims that took advantage of their opportunity to amend and refile their claims under Public Law 357. On May 27, 1957, Mr. William L. Shaeffer, minerals officer, Bureau of Land Management, testified that over 3,000 claims were on file in the office in Billings, Mont. Of course many people did not amend their claims realizing that their uranium was in lignites that would qualify under the definition of coal and they retained their claims under the general mining law without reference to Public Law 357. In Harding County, alone, more than 4,000 claims are of record.

Another figure which probably would compare very favorably with the expenditures of Ohio Oil Co. would be the expenditures by the Atomic Energy Commission. What has been expended by personnel in the field, the plant research in Grand Junction, work by National Lead Co. in Winchester, Mass., together with expenses in offices and resources in such places as Salt Lake, Denver, etc., I am sure that it would be greater than any other company excepting Ohio Oil Co. or possibly Northgate Uranium or International Resources. This is out of my field and I am sure that the figures can be ascertained by the Commission themselves. One difference might be pointed out on this expenditure in that the Atomic Energy has found a vast field of uranium for the Federal Government and that Federal Government as long as it exists, may at some time in the future go to those reserves and get a return on their investment. Not so the peoples that have expended the money as set out in the foregoing table. For the most of them their cause is lost and their money gone, for they cannot be expected to keep up annual assessment forever when the Government has control of the buying and apparently chooses not to do so.

PEOPLES OF THE AREA WERE ENCOURAGED TO PROSPECT AND DEVELOP

When the first claims and the rapid development within the area came about, it appeared from Circular No. 6 as amended in 18 Federal Regulation 6587, October 16, 1953, that the Commission ore-buying stations in Monticello, Utah, Marysvale, Utah, and Edgemont, S. Dak. Uranium mills were qualified at the following places, Uravan, Colo.; Rifle, Colo.; Grand Junction, Colo.; Durango, Colo.; Naturita, Colo.; Hate, Utah; and Salt Lake City, Utah. Since that time the openings of the fields in New Mexico, Arizona, Oregon, and Wyoming have been brought about and additional plants granted within the States of Colorado and Utah. And quoting from a paper presented by Jesse C. Johnson, Director of Division of Raw Materials, Atomic Energy Commission, presented to the Fourth Annual Conference of the Atomic Industrial Forum, October 28, 1957, at New York, N. Y., at that time we had about 5 million tons of domestic ore reserve. By January of 1955, the Atomic Energy Commission had received reports from their field men of a known reserve of 115,000 tons in the lignites. These figures were complied from exactly 10 claims. Assays determined from samples at that time showed values below minimum to contents of over 18 percent uranium. Drill samples by the Atomic Energy Commission showed many tests on claims where apparently uranium content was in excess of 1 percent. Very little more known uranium existed in the State of Wyoming at the time they were offered a purchasing station in Riverton. At the time of their assay those 10 claims would have contained more than 1 percent of all known reserves in the United States.

At all times the peoples were encouraged to develop their claims so that the Atomic Energy Commission would have more information as to the extent of the area. I believe typical of the attitude created was set forth in the letter by Mr. Evenson.

Time after time we were told, "patience, patience." "Mining is a slow, slow process." "It will take time to develop the process, but there will be one."

Letters of intent were issued to the Standard Pipeline Co. headed by Wiley Moore, of Atlanta, Ga., and the Ohio Oil Co. group who were doing their research through the Catalitic Construction Co. Also during this time International Resources were pursuing the same program as the Ohio Oil group but working through the Grand Junction Operations Office rather than at Washington level. In May of 1957 we were told the economical price would be $10.50 per

pound for the concentrate and that they were thus committed to the Ohio Oil Co. and they would stand by that commitment with any other company now working on the process.

I would like to refer to the hearing before the Committee on Interior and Insular Affairs (Subcommittee on Mines and Mining) on H. R. 4748. At this time Mr. Johnson acknowledged the work being done by International Resources and I refer to page 24 where he states, "Another company also has given our Grand Junction office an informal statement that it would probably be in with a proposal within the next few months."

On page 30 he stated, "I think that if the uranium can be produced at an economic price they will have a market and my opinion is at the extention at this time in view of the facts set forth in the Commission's letter, seems equitable." He further stated at that time that our domestic concentrate is now costing us on an average of something around $10 a pound of UзO, which I assume should be considered an economic price, as later on page 42 he states "a price for concentrate of approximately $10 a pound would be economic." I believe that this should answer the question that an economic proposal has been made.

The question has been asked upon the quantities of uranium in the area. I believe tht Commission has accepted the figure of 900,000 tons of proven reserve. I also believe that this figure is mainly the figure as submitted by the Ohio Oil Co. group. However I do not believe I would be out of line saying that this is one of the largest known deposits of uranium that has existed without benefit of any buying program. At the time they started the purchase program in Wyoming it was much smaller reserve than this and now claiming upward of 15 million tons.

I further wish to quote from Mr. Johnson's testimony on page 28 of the aforementioned hearing when he states "I am confident that the lignite deposits of the Dakotas will be a valuable source of uranium for a period of 10 years or more from now-if not economic at the present time-when we have large supplies of relatively low cost material available." And he further states on page 31 “*** we have carried the program along sufficiently so that it should be completed, even though it is not economic, because the time will come when these deposits will be required, I feel certain of that." He further testified that we should know or determine during the next 12 months whether the lignites could be economically utilized.

While this is not a statement guaranteeing any company a period of 12 months, I believe our old friend "the reasonably prudent man" would assume we are going to get somewhere in the next 12 months and if anybody does we will have a market.

The companies working on the process would assume that every consideration would be given them if they would come up within the $10.50 price. Should all the miners of the area be made to suffer because the company negotiated through a subordinate office instead of at Washington. Was there not a duty upon the Government if they were to close down their program for new mills, on the 1st of October, to so inform such companies as International Resources to either have a proposal submitted by such time or abandon their program. Mr. Johnosn in his paper presented in October at New York City, stated "If new contracts are considered, preference will be given providing a limited market for areas having no present milling facilities." We have such an area.

Was there not a commitment existing to International Resources Corp. which was recognized by the Atomic Energy Commission in a letter addressed to the Honorable Joe Foss, Governor of South Dakota, on July 29, 1957, when the chairman stated that firm proposals had been received from both mining and development corporations (the Ohio Oil Co.) and International Resources Corp. And that an agreement upon a contract or contracts would depend primarily on arriving at a satisfactory price arrangement.

We realize mining is a speculative game and that possibly more people lose than gain, but we do not all like to lose because it took us more time and more effort to get a market. Are we to distrust our own Government when they make an appeal for minerals, or for shipyard workers as in World War II, or for enlistments in the service, or for any or all of the other causes that the Government must go back to its people for.

The help that has been given in the past by the Commission is greatly appreciated, in particular the consideration granted by Mr. Johnson, but as a little man thousands of miles away from the Government it is hard to see how the door can be closed at this time.

As so ably put by the Commission in a letter urging adoption of H. R. 4748 that not to pass the bill would be to allow third parties to benefit from the original locator's efforts. So if no contract is awarded to a processing company now, third parties in the future will benefit for the work of the men who developed the area.

Respectfully submitted.

DONN BENNETT,

President of Four States Uranium Association, Buffalo, S. Dak.

Senator MUNDT. In conclusion, just yesterday there was brought to my attention another problem confronting uranium producers in another part of South Dakota, in the Edgemont area where we first became commercial in this business, and where a mill is now in fact, and has been for some time, processing uranium. It seems that the implementation of the order which has reduced the purchase of uranium has tended to work a disadvantage to the small producer in that area, who is a casual seller and producer of uranium.

I would like to direct the attention of this committee to that particular problem, because we are all, I am sure, agreed that we would not want anything to come along which would work to the disadvantage of the individual producer who, on his own, has staked out a claim, who has gone into business, and who finds himself, because of a contractual situation, unable to sell sufficient uranium to stay in business.

Mr. Roy Chord, of Edgemont, S. Dak., one of the early people in the business, and the president of one of the smaller uranium corporations in the area, will be here to speak for himself. But I did want to direct the attention of the committee to that precise problem which is somewhat different than the one I was discussing in connection with the uranium in the lignite area.

Chairman DURHAM. I am a little surprised to find as many small producers as there have been before the committee. I am glad to have them. Usually it is nobody but the larger operators who have appeared before us.

Senator MUNDT. Yes. I have known the chairman of this distinguished committee for a long time, and I know of his concern for the small fellow in our American economic life. One of the gratifying things about uranium is that at the moment, at least, it is participated in by a host of producers, many of them small. I think it would be a healthful and a wholesome thing if we could encourage the production of uranium on the basis that the small producer shares equitably and fairly with those larger corporations which belatedly now are getting into the uranium business.

Chairman DURHAM. There is one thing which has not been brought out in the committee hearings which I think is important, and that is the unemployment, increasingly, in those States, and how far reaching it is. It must be growing very rapidly all the time.

Senator MUNDT. Of course. And in this thing, we run into the same problem we are constantly confronted with in the Senate and House, and that is what do you do in the kind of world in which we live when you find your home markets closed up because you are importing from abroad something you could sell if produced at home. This is a very complicated subject. Nobody wants to get the world out of gear with a war, but it is a situation which, however we resolve it, it seems to me, should be resolved in such a way that the small,

domestic producer should not be caused to pay the full price of supporting our American foreign policy.

Chairman DURHAM. I read the other day where Canada is shipping uranium to Europe. Probably with the situation as it is today, without permitting our producers to export their product, they will probably capture the market, a market which I think has great potential. Senator MUNDT. It certainly does. I freely confess that I do not know anybody so wise, and I doubt if Solomon himself had the genius, who is able to find the answer to the situation which we confront as free enterprises. In a world confronted with an economic war from a totalitarian state, we can at least, to me, resolve that if this becomes necessary foreign policy, it should then be supported by the general public, and not by the individual little uranium producer, or, perhaps, in your community, the textile producer, who gets caught in that particular kind of a squeeze.

Chairman DURHAM. I have probably made predictions at times that have been wrong, but I think I can speak from the knowledge I have gained in seeing Europe, for 6 or 8 weeks this last year, and to me they have to have the fuel if they build reactors. The biggest supply in the world at the present time is here in our own backyard. But yet we are suffering from this kind of a situation.

Senator MUNDT. Yes. As you continue this very commendable study in which you are engaged, I am sure you will direct part of your attention to the international aspects of this problem.

Chairman DURHAM. From what we know now at the present time, all of the uranium in the countries of Eastern Europe is in the hands of Russia. There is very little outside of that at the present time which is known. There is a little in France and in Portugal. They told me that that is one thing they are looking for in the mountains and everywhere else.

Senator MUNDT. It would seem to follow that that being true, in the interest of national security it is important that in this counry we not only have available uranium and uranium in the ground, but we should have mills capable of producing it if we need it quickly.

Chairman DURHAM. I am firmly convinced that in Europe there will be a power-development program, and they will have to get the money from someplace, in order to support their population. England has already gone all out with a loan, and there are parts of the world where they have no uranium, outside of Canada and the United States. I think the matter of exploration is one of the things we should continue, because we ought to at least know how much we have if we are going to build atomic plants here.

Senator MUNDT. I could not agree with the Chairman more that while the surplus of uranium, like the surplus in agricultural products, may cause temporary headaches, it is nothing like the headaches we would have if we had a shortage of either.

Chairman DURHAM. Thank you very much, Senator.

Have you any questions?

Representative HOSMER. I have no questions.

Senator MUNDT. Thank you very much.

Chairman DURHAM. Senator Young, I believe, had a statement to make.

Come forward, Senator Young.

STATEMENT OF HON. MILTON R. YOUNG, A UNITED STATES SENATOR FROM THE STATE OF NORTH DAKOTA

Senator YOUNG. Thank you, Mr. Chairman. It is a pleasure to appear before the committee. May I file a statement on behalf of my colleague, Senator Langer?

He had a prepared statement, but has a conflict of hearings this afternoon and he could not get away.

Chairman DURHAM. Without objection, it may be filed. (The document referred to follows:)

STATEMENT OF SENATOR WILLIAM LANGER, NORTH DAKOTA

Gentlemen, I appear before you to strongly urge the serious need for a uranium-processing mill in the area of the lignite fields of North and South Dakota and eastern Montana. I know that you will have many witnesses before you to express the many reasons why such a uranium-processing mill should be approved by the Atomic Energy Commission, so therefore, not desiring to be repititious, I shall present a concise statement to fortify our position of the great need of this uranium-processing mill near the uraniferous lignite fields.

It should be noted that the Senators and Congressmen from the States of North Dakota, South Dakota, and Montana appeared recently before the Honorable Jesse Johnson, Director, Division of Raw Materials of the Atomic Energy Commission and later before the Honorable W. F. Libby and John F. Floberg, Commissioners of the Atomic Energy Commission. They were accompanied by a large delegation of claimholders from the States of North Dakota, South Dakota, and nearby areas and received attentive response to what one Commissioner says was a "persuasive presentation" made at the conference as to the need for the uranium-processing mill.

The spokesmen for the various delegations pointed out that over $2 million has been spent in preparation for a contract to construct a uranium-processing plant on a hope given by the Atomic Energy Commission that a contract had the prospect of culmination.

I noted from an article in this morning's paper, "A Governor, 2 Congressmen, and 14 representatives of the uranium-ore industry in Wyoming, New Mexico, and Arizona accused the Atomic Energy Commission yesterday of leading the industry out to the end of a limb and then sawing it off."

I wish to impress upon this committee the fact that this $2 million that has been spent in preparation for the construction of a processing plant in the Dakotas, not only represents large sums of money by industries who were encouraged by the Atomic Energy Commission to proceed with the hope of a contract, but, in many instances, represents the life savings of many little claim-holders in the Dakotas who have spent everything that they have and can possibly borrow for the hope of the construction of a uranium-processing plant in their area. Failure of the granting of a contract for the processing plant would be ruinous to these claimholders. This fact was made crystal clear to the Atomic Energy Commissioners when they appeared before them as I have mentioned herein.

It is incumbent upon the Congress, as well as the executive branch of the Government, in these perilous times of hydrogen bombs and missiles and various forms of atomic energy that we be assured that there is a sufficient stockpile of uranium-ore concentrate, not only to meet the needs of the United States, but the needs of our allies, if it is necessary for the security of our Nation and the security of those who aid us in resisting our common enemy.

We have been reliably informed that not only would uranium be produced from the lignite fields, but special byproducts such as power, petrochemicals, oils and tars, and others would be produced from such an operation, all of which will be of great benefit to the security and economy of our Nation.

Gentlemen, I wish to advise you that the congressional delegations from the Dakotas and Montana are in the fullest accord in the great and serious need for the construction of a uranium-processing mill in the uraniferous lignite area, not only for the tremendous boost in industry in that area, but because of the great value that it will render to the security and the economy of the United States.

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