STATEMENT OF JACK WENTWORTH, DIRECTOR, NEW MEXICO ECONOMIC DEVELOPMENT COMMISSION Mr. WENTWORTH. Mr. Chairman, and members of the committee, I would like to express our sincere appreciation for being invited to be here today. My name is Jack Wentworth. I am director of the New Mexico. Economic Development Commission, an agency of the State government of New Mexico. The commission recognizes that the uranium industry is of great importance to the economy of the State of New Mexico, and it is on behalf of these people that we appear here today. I would like to express the regret of the chairman of our commission that he could not attend today as a witness, due to an attack of the flu. The interest of the New Mexico Economic Development Commission in the matter now before the Joint Committee on Atomic Energy, lies in the problem faced by the legitimate uranium operators who have proved ore reserves, but no facility for milling or marketing them. The New Mexico Economic Development Commission has been advised on excellent authority that 6 operators in the Grants-Ambrosia Lake area have a total of more than 2 million tons of proved uranium reserves blocked out, but no milling commitments. The New Mexico Economic Development Commission became interested in this problem after the statement made by the Atomic Energy Commission October 28, 1957. The New Mexico Economic Development Commission held a meeting in Albuquerque, N. Mex., on December 9, 1957, with the leaders and representatives of the New Mexico uranium industry. The transcript of that meeting has just been introduced by the preceding witness, Congressman Montoya. This meeting was attended by Mr. Jesse C. Johnson, Director of the Raw Materials Division of the Atomic Energy Commission. We believe that prior to October 28, 1957, there were more than 40 drilling rigs operating in the Grants-Ambrosia Lake area. We have been advised that there are not more than 12 drilling rigs operating in the same area, doing exploration and development at the present time. The New Mexico State land commissioner, Mr. Murray Morgan, stated on February 19, as reported in the press, that the Government's uranium-buying policies were responsible for a sharp decline in revenue from the State's sale of mineral leases. Commissioner Morgan stated that he is going to stop issuing mineral leases until there is some clarification of uranium milling policies which have drawn protests from people in the uranium industry. Commissioner Morgan also pointed out that the monthly sale of mineral leases last August produced $4,400-September's sale brought in $5,200-October, $2,500-November, $968-December 1957, $227January 1958, $377-and the sale last February 19 dropped to $118. Only 6 of the 30 tracts offered on February 19, 1958, were sold. The Uranium Institute of America has stated: Recent statements concerning uranium and atomic energy have stimulated a great deal of speculation and anxiety as to the future markets for uranium. The New Mexico Mining Association, on November 8, 1957, adopted the following resolution: We deplore the recent announcements of the United States Atomic Energy Commission that further contracts for the purchase of domestic production of uranium concentrates will be curtailed. As a result of such policy many operators in newly developed areas will be unable to find a market for their ores. Therefore, it is strongly urged that the Commission provide adequate remedial measures for such cases. We further urge that the Commission purchase domestic ores and concentrates when they are available rather than to purchase the same from foreign sources. In view of information which reached the New Mexico Economic Development Commission in the form of the two statements just quoted, facts provided by members of the New Mexico uranium industry, and information developed at the December 9 meeting in Albuquerque, the New Mexico Economic Development Commission adopted, on January 9, 1958, a resolution, which accompanies this statement. It is requested that the resolution be introduced into the record and made a part thereof. Chairman DURHAM. Without objection, it will be. (The document referred to follows:) NEW MEXICO ECONOMIC DEVELOPMENT COMMISSION RESOLUTION Whereas it has been publicly reported that Hon. Jesse C. Johnson, Director, Division of Raw Materials of the United States Atomic Energy Commission, in an address to the Atomic Industrial Forum in New York City on October 28, 1957, stated that: "We have arrived at the point where it is no longer in the interest of the Government to expand production of uranium concentrate. * * * The commission at this time is faced with limiting commitments for additional domestic uranium production." and Whereas the Uranium Institute of America has stated that: "Recent statements concerning uranium and atomic energy have stimulated a great deal of speculation and anxiety as to the future markets for uranium." and Whereas information provided this commission by members of the uranium industry at the Economic Development Commission meeting held in Albuquerque, N. Mex., on December 9, 1957, the United States Chamber of Commerce's Symposium on Future Markets for Uranium held in Denver, Colo., on December 16 and 17, 1957, and on numerous other occasions-leads this commission to believe that the anxiety felt by the uranium industry is justified; and Whereas the uranium industry is, and will continue to be, of substantial economic value and importance to the State of New Mexico; and Whereas the New Mexico Mining Association, on November 8, 1957, adopted the following resolution: "We deplore the recent announcements of the United States Atomic Energy Commission that further contracts for the purchase of domestic production of uranium concentrates will be curtailed. "As a result of such policy many operators in newly developed areas will be unable to find a market for their ores. Therefore, it is strongly urged that the Commission provide adequate remedial measures for such cases. "We further urge that the Commission purchase domestic ores and concentrates when they are available rather than to purchase the same from foreign sources." and Whereas the uranium industry is also disturbed about the policy of classification and secrecy that surrounds purchasing procedures and administrative matters of the Atomic Energy Commission, particularly regarding the purchase of uranium from foreign countries: Be it, therefore Resolved, That in the interest of the economic welfare of the citizens of the State of New Mexico, the representatives of the people of New Mexico in the Senate and the House of Representatives of the Congress of the United States be requested to call upon the Joint Congressional Committee on Atomic Energy to hold public hearings for the purpose of clarifying the policies of the United States Atomic Energy Commission and protecting the interests of the uranium industry in New Mexico to the fullest possible extent; and be it further Resolved, That the Joint Congressional Committee on Atomic Energy be urged to give prompt consideration to the following recommendations of this commission: 1. The formulation of a Government program to encourage exploration for further uranium reserves essential to our national security such as giving (a) prompt repayment of successful drilling costs; (b) an advance payment, on a sliding scale, of from 50 cents to $50 per ton for ore ranging from 0.10 percent to 10 percent; (c) a subsequent yearly advance payment, on a sliding scale, of from 5 cents to $5 per ton for ore ranging from 0.10 percent to 10 percent; and, (d) that these advance payments be reimbursed to the Government out of operating profits when the ore is mined. 2. An adjustment of the conflict in policies of Federal agencies regarding Federal claims and Indian leases whereby one agency of the Government requires claimants and lessors to do certain exploratory and development work while another agency of the Government prohibits the marketing of ore from the claims and leases. 3. That urgent consideration be given to the authorization of a GrantsAmbrosia Lake area cooperative custom mill to provide a market for established uranium ore bodies in the area not now committed to any mill, thereby preventing further injury to the operators who are in no position to finance exploration and development and carry reserves on an uncertain and long-term basis; and be it further Resolved, That copies of this resolution be forwarded to Senator Dennis Chavez, Senator Clinton P. Anderson, Congressman John J. Dempsey, Congressman Joseph M. Montoya, the Honorable Lewis L. Strauss, Chairman of the United States Atomic Energy Commission, the Honorable Jesse C. Johnson, Director of the Division of Raw Materials of the United States Atomic Energy Commission, the New Mexico Association, the Colorado Mining Association, and the Uranium Institute of America. NEW MEXICO ECONOMIC DEVELOPMENT COMMISSION, JAMES H. RUSSELL, Chairman. Attest: SANTA FE, N. MEX., January 9, 1958. JACK WENTWORTH, Director. Mr. WENTWORTH. I would like to quote briefly from the resolution: Whereas information provided this Commission leads this Commission to believe that the anxiety felt by the uranium industry is justified. And, quoting again from the resolution: Resolved, That in the interest of the economic welfare of the citizens of the State of New Mexico, the Representatives of the people of New Mexico in the Senate and the House of Representatives of the Congress of the United States be requested to call upon the Joint Congressional Committee on Atomic Energy to hold public hearings for the purpose of clarifying the policies of the United States Atomic Energy Commission and protecting the interests of the uranium industry in New Mexico to the fullest possible extent. The New Mexico Economic Development Commission endorses the recommendation adopted by the Uranium Institute of America on February 5, 1958, for a Government-industry evaluation committee. This recommendation reads as follows: In order to facilitate the transition to free enterprise and to achieve closer cooperation between the Atomic Energy Commission and the uranium industry— in which responsibilities are shared by both public and private bodies—we recommend the establishment of a committee of representatives from management levels of the uranium producing industry and of the Atomic Energy Commission; this committee to concern itself with general problems of industry and government The New Mexico Mining Association, on November 8, 1957, adopted the following resolution: We deplore the recent announcements of the United States Atomic Energy Commission that further contracts for the purchase of domestic production of uranium concentrates will be curtailed. As a result of such policy many operators in newly developed areas will be unable to find a market for their ores. Therefore, it is strongly urged that the Commission provide adequate remedial measures for such cases. We further urge that the Commission purchase domestic ores and concentrates when they are available rather than to purchase the same from foreign sources. In view of information which reached the New Mexico Economic Development Commission in the form of the two statements just quoted, facts provided by members of the New Mexico uranium industry, and information developed at the December 9 meeting in Albuquerque, the New Mexico Economic Development Commission adopted, on January 9, 1958, a resolution, which accompanies this statement. It is requested that the resolution be introduced into the record and made a part thereof. Chairman DURHAM. Without objection, it will be. (The document referred to follows:) NEW MEXICO ECONOMIC DEVELOPMENT COMMISSION RESOLUTION Whereas it has been publicly reported that Hon. Jesse C. Johnson, Director, Division of Raw Materials of the United States Atomic Energy Commission, in an address to the Atomic Industrial Forum in New York City on October 28, 1957, stated that: "We have arrived at the point where it is no longer in the interest of the Government to expand production of uranium concentrate. *** The commission at this time is faced with limiting commitments for additional domestic uranium production." and Whereas the Uranium Institute of America has stated that: "Recent statements concerning uranium and atomic energy have stimulated a great deal of speculation and anxiety as to the future markets for uranium." and Whereas information provided this commission by members of the uranium industry at the Economic Development Commission meeting held in Albuquerque, N. Mex., on December 9, 1957, the United States Chamber of Commerce's Symposium on Future Markets for Uranium held in Denver, Colo., on December 16 and 17, 1957, and on numerous other occasions-leads this commission to believe that the anxiety felt by the uranium industry is justified; and Whereas the uranium industry is, and will continue to be, of substantial economic value and importance to the State of New Mexico; and Whereas the New Mexico Mining Association, on November 8, 1957, adopted the following resolution: "We deplore the recent announcements of the United States Atomic Energy Commission that further contracts for the purchase of domestic production of uranium concentrates will be curtailed. "As a result of such policy many operators in newly developed areas will be unable to find a market for their ores. Therefore, it is strongly urged that the Commission provide adequate remedial measures for such cases. "We further urge that the Commission purchase domestic ores and concentrates when they are available rather than to purchase the same from foreign sources." and Whereas the uranium industry is also disturbed about the policy of classification and secrecy that surrounds purchasing procedures and administrative matters of the Atomic Energy Commission, particularly regarding the purchase of uranium from foreign countries: Be it, therefore Resolved, That in the interest of the economic welfare of the citizens of the State of New Mexico, the representatives of the people of New Mexico in the Senate and the House of Representatives of the Congress of the United States be requested to call upon the Joint Congressional Committee on Atomic Energy to hold public hearings for the purpose of clarifying the policies of the United States Atomic Energy Commission and protecting the interests of the uranium industry in New Mexico to the fullest possible extent; and be it further Resolved, That the Joint Congressional Committee on Atomic Energy be urged to give prompt consideration to the following recommendations of this commission: 1. The formulation of a Government program to encourage exploration for further uranium reserves essential to our national security such as giving (a) prompt repayment of successful drilling costs; (b) an advance payment, on a sliding scale, of from 50 cents to $50 per ton for ore ranging from 0.10 percent to 10 percent; (c) a subsequent yearly advance payment, on a sliding scale, of from 5 cents to $5 per ton for ore ranging from 0.10 percent to 10 percent; and, (d) that these advance payments be reimbursed to the Government out of operating profits when the ore is mined. 2. An adjustment of the conflict in policies of Federal agencies regarding Federal claims and Indian leases whereby one agency of the Government requires claimants and lessors to do certain exploratory and development work while another agency of the Government prohibits the marketing of ore from the claims and leases. 3. That urgent consideration be given to the authorization of a GrantsAmbrosia Lake area cooperative custom mill to provide a market for established uranium ore bodies in the area not now committed to any mill, thereby preventing further injury to the operators who are in no position to finance exploration and development and carry reserves on an uncertain and long-term basis; and be it further Resolved, That copies of this resolution be forwarded to Senator Dennis Chavez, Senator Clinton P. Anderson, Congressman John J. Dempsey, Congressman Joseph M. Montoya, the Honorable Lewis L. Strauss, Chairman of the United States Atomic Energy Commission, the Honorable Jesse C. Johnson, Director of the Division of Raw Materials of the United States Atomic Energy Commission, the New Mexico Association, the Colorado Mining Association, and the Uranium Institute of America. NEW MEXICO ECONOMIC DEVELOPMENT COMMISSION, JAMES H. RUSSELL, Chairman. Attest: SANTA FE, N. MEX., January 9, 1958. JACK WENTWORTH, Director. Mr. WENTWORTH. I would like to quote briefly from the resolution : Whereas information provided this Commission leads this Commission to believe that the anxiety felt by the uranium industry is justified. And, quoting again from the resolution : Resolved, That in the interest of the economic welfare of the citizens of the State of New Mexico, the Representatives of the people of New Mexico in the Senate and the House of Representatives of the Congress of the United States be requested to call upon the Joint Congressional Committee on Atomic Energy to hold public hearings for the purpose of clarifying the policies of the United States Atomic Energy Commission and protecting the interests of the uranium industry in New Mexico to the fullest possible extent. The New Mexico Economic Development Commission endorses the recommendation adopted by the Uranium Institute of America on February 5, 1958, for a Government-industry evaluation committee. This recommendation reads as follows: In order to facilitate the transition to free enterprise and to achieve closer cooperation between the Atomic Energy Commission and the uranium industryin which responsibilities are shared by both public and private bodies-we recommend the establishment of a committee of representatives from management levels of the uranium producing industry and of the Atomic Energy Commission; this committee to concern itself with general problems of industry and government |