JOINT COMMITTEE ON ATOMIC ENERGY CHET HOLIFIELD. California, Chairman JOHN O. PASTORE, Rhode Island, Vice Chairman MELVIN PRICE. Illinois RICHARD B. RUSSELL, Georgia HENRY M. JACKSON, Washington JAMES T. RAMEY, Executive Director SUBCOMMITTEE ON RESEARCH, DEVELOPMENT, AND RADIATION CHET HOLIFIELD, California JAMES E. VAN ZANDT, Pennsylvania JOHN O. PASTORE, Rhode Island JACK R. NEWMAN. Professional Staff Member II Naiden, Neil D., General Counsel. Lowenstein, Robert, Acting Director, Division of Licensing and Regula- Eason, Charles, counsel for Federal-State relations. Kratzer, Myron, Deputy Director, Division of International Affairs. Beers, Roland F., consultant............. OTHER WITNESSES (BY ORGANIZATION OR AFFILIATION) Associated Factory Mutuals, Ambrose B. Kelly, general counsel.. Baer, Marks, Friedman & Berliner, Arthur W. Murphy.. Covington & Burling, W. Graham Claytor, Jr., attorney, representing Maher, E. T., counsel, atomic development.. Shoults, D. R., representative, atomic development_ Glenn L. Martin Co., the, Clark C. Vogel... Liberty Mutual Insurance Co., Hubert W. Yount, executive vice president_ New York State Office of Atomic Development, Maurice Axelrad.. New York State Thruway Authority, John P. MacArthur, assistant Nuclear Energy Liability Insurance Association, DeRoy C. Thomas, MATERIAL INSERTED IN THE RECORD Appendix to statement of D. R. Shoults before the JCAE concerning pro- posals before the Committee for the amendment of the Price-Anderson Act to provide coverage for Government contractors for liability arising from foreign nuclear incidents___. Discussion by Roland F. Beers of the testimony of Lewis B. Browder and SJCAE press release announcing the hearing and the witnesses on indemnity. Statement of Milton D. Stewart, general counsel, American Bridge, Testimony of the AEC before the JCAE regarding indemnity activities. CORRESPONDENCE INSERTED IN THE RECORD Charnoff, Gerald, Atomic Industrial Forum, to Robert Lowenstein, 'Dorsett, J. Dewey, to secretary, AEC, concerning extension of indemnity Gilman, Roger H., director of port development, Port of New York Myron B. Kratzer, Deputy Director, Division of International Affairs, AEC, dated June 16, 1961, on the possibility of using New York International Airport for shipment of irradiated fuel elements Gilman, Roger H., director of port development, Port of New Yor Authority, to-Continued 21: Oliver Townsend, Director, Office of Atomic Development, date June 30, 1961, dealing with financial protection against nuclear ri at facilities of Port of New York AuthorityAlgie A. Wells, Director, Division of International Affairs, AE dated April 29, 1960, in reference to AEC's proposal to ship irr diated fuel elements from Europe through the port of New York..... Hodgkiss, Arthur S., assistant general manager, Triborough Bridge Tunnel Authority, to Oliver Townsend, Director, Office of Atom Development, dated July 13, 1961, relating to transportation of radi active materials over the facilities of the Triborough Bridge & Tunn Authority Ink, Dwight A., Assistant General Manager, AEC, to James T. Rame Executive Director, JCAE, dated August 8, 1961, furnishing data AEC contracts containing an agreement under 170d of the act a general indemnity protection covering nuclear incidents.. Kline, Theodore H., acting counsel, New York State Thruway Authorit to New York State Office of Atomic Development, dated July 14, 196 on the subject of transportation of radioactive materials.. Kratzer, Myron B., Deputy Director, Division of International Affairs, AE to Roger Gilman, director of port development, Port of New York A thority, dated September 30, 1960, concerning proposal to sh irradiated fuel through the port of New York. Roger H. Gilman, director, Port Development Department, Port New York Authority, dated May 3, 1961, relating to problems reprocessing irradiated reactor fuels from abroad. Naiden, Neil D., AEC, dated August 14, 1961, to Hon. Melvin Pri regarding determination of Martin Co. as a production facility. Thomas, DeRoy C., assistant general manager, Mutual Atomic Ener Liability Underwriters, to— Harold L. Price, Director, Division of Licensing and Regulatio dated February 10, 1961, on affording Price-Anderson indem fication to fuel fabricators Harold L. Price, Director, AEC, dated February 10, 1961, commer ing on the memo of Atomic Industrial Forum concerning indemn to fuel fabricators.. Vogel, Clark C., Martin Co., dated July 24, 1961, to Hon. Melvin Pr regarding contractors providing financial protection -- Wayne, H. L., general manager, Inland Marine Insurance Bureau, Oliver Townsend, Director, Office of Atomic Development, dat June 16, 1961, on providing limited nuclear damage coverage on bric and tunnel facilities. Yount, Hubert W., executive vice president, Liberty Mutual Insura Co., to Senator Clinton P. Anderson, dated May 26, 1961, concernin bill to provide damages for those injured by underground detonati of a nuclear device... APPENDIXES Appendix 1: Letter from James H. Campbell, Consumers Power C to Congressman Chet Holifield, dated May 10, 1961, offering an ame ment to the Price-Anderson Act__ Appendix 2: Statement of Babcock & Wilcox Co. on nuclear haz liability indemnification _ _ Appendix 3: Letter from L. Don Leet, dated July 21, 1961, regard testimony and discussion of Browder and Leet testimony by Roland F. Beers_ Appendix 4: AEC Report to the Joint Committee on Atomic Energy operations under section 170 of the Atomic Energy Act of 1954, amended, March 31, 1961__ Appendix 5: Model Nuclear Facilities Liability Act (approved by Commissioners on Uniform State Laws) _ Appendix 6: Statement by Congressman Melvin Price introducing H 9244, a bill extending the coverage of the indemnity provisions of Atomic Energy Act of 1954, to include nuclear incidents occurring out the United States___ OPERATIONS UNDER THE INDEMNITY PROVISIONS OF THE ATOMIC ENERGY ACT OF 1954 TUESDAY, JULY 18, 1961 CONGRESS OF THE UNITED STATES, SUBCOMMITTEE ON RESEARCH, DEVELOPMENT, AND RADIATION, JOINT COMMITTEE ON ATOMIC ENERGY, Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in room P–63, the Capitol, Hon. Melvin Price (chairman of the subcommittee) presiding. Present: Representatives Price, Morris, and Westland; and Senator Anderson. Also present: James T. Ramey, executive director; and Jack R. Newman, professional staff member, Joint Committee on Atomic Energy. Representative PRICE. The subcommittee will be in order. The Subcommittee on Research, Development, and Radiation of the Joint Committee on Atomic Energy opens hearings today on operations under the indemnity provisions of the Atomic Energy Act of 1954. In the course of these hearings, we shall receive testimony on the AEC's annual report to the Joint Committee on Atomic Energy on operations under section 170 of the Atomic Energy Act. We also plan to give further consideration to proposed legislation affecting the Commission's liability for underground nuclear detonations. We also expect to discuss recent proposals to amend the PriceAnderson Act so as to extend coverage to incidents occurring outside the United States.1 This morning we well hear from witnesses from the Atomic Energy Commission. Before our first Commission witness takes the stand, I would like to place in the record at this point the press release announcing our schedule of witnesses. (The material referred to follows:) [No. 326. From the Offices of the Joint Committee on Atomic Energy. For release Monday a.m., July 17, 1961] JOINT COMMITTEE ON ATOMIC ENERGY ANNOUNCES WITNESSES FOR HEARINGS ON INDEMNITY ON JULY 18, 19, AND 20, 1961 A tentative schedule of witnesses to testify at the hearings on indemnity before the Subcommittee on Research, Development, and Radiation of the Joint Committee on Atomic Energy was announced today by Congressman Melvin Price, chairman of the subcommittee. 1 On Sept. 15, 1961, Congressman Price introduced a bill (H.R. 9244) to expand the coverage of the Atomic Energy Act of 1954 so as to cover nuclear incidents occurring outside the United States. Mr. Price's statement on the floor, the bill, and an analysis thereof appear as appendix 6, p. 177. 1 The hearings will begin on Tuesday, July 18, at 10 a.m., in room P-63, the Old Supreme Court Chamber in the Capitol. They will continue through Thursday, July 20. In accordance with the requirements of section 170 of the Atomic Energy Act, the Commission forwarded to the Joint Committee a report on operations under the indemnity provisions of the act for 1960. This report was released to the press by the Atomic Energy Commission on April 13, 1961. The Commission will testify on this report on Tuesday, July 18. In the course of the hearings, the subcommittee plans to give further consideration to two bills, S. 1144 (introduced by Senator Anderson) and H.R. 5215 (introduced by Congressman Morris) concerning the Commission's liability for underground nuclear detonations. This legislation establishes rules of liability for damages resulting from such activities as the plowshare program of peaceful nuclear explosions. In addition, the subcommittee will discuss recent proposals to amend the Price-Anderson Act so as to extend its coverage to incidents occurring outside the United States. This proposal was set out in detail on pages 137-139 of the published 1961 hearings on the "Development, Growth, and State of Atomic Energy Industry." The subcommittee also expects to receive testimony on the regulatory and insurance problems associated with the transportation of radioactive materials. A complete list of witnesses, subject to change, is attached. LIST OF WITNESSES ON INDEMNITY HEARINGS JULY 18, 19, and 20, 1961 July 18, Tuesday, 10 a.m.: Atomic Energy Commission witnesses. Mr. DeRoy C. Thomas, Nuclear Energy Liability Insurance Association. Mr. Hubert W. Yount, Liberty Mutual Insurance Co. Mr. Ambrose B. Kelly, Associated Factory Mutual Fire Insurance Companies. July 20, Thursday, 10a.m.: Mr. Arthur W. Murphy, law firm of Baer, Marks, Friedman & Berliner. Mr. Clark C. Vogel, the Glenn L. Martin Co. Mr. Oliver Townsend, New York State Office of Atomic Development. Mr. Milton Stewart, American Bridge, Tunnel & Turnpike Association, New York Thruway Authority. Representative PRICE. Mr. Olson, are you going to represent the Commission today? Mr. OLSON. Yes, sir. STATEMENT OF LOREN K. OLSON, COMMISSIONER, ACCOMPANIED BY FRANK N. PARKS AND JOSEPH HENNESSEY, OFFICE OF THE GENERAL COUNSEL; ROBERT LOWENSTEIN, ACTING DIRECTOR, DIVISION OF LICENSING AND REGULATION; NEIL D. NAIDEN, GENERAL COUNSEL; MYRON KRATZER, DEPUTY DIRECTOR, DIVISION OF INTERNATIONAL AFFAIRS; AND ROLAND F. BEERS, CONSULTANT, ATOMIC ENERGY COMMISSION Mr. OLSON. I have a prepared statement. What is your pleasure? Would you like me to read it, or merely submit it for the record and submit to questioning? It is pretty lengthy. Representative PRICE. I would suggest that you summarize it and submit the full statement for printing in the record. Mr. OLSON. Because of the complexity of the subject matter, Mr. Price, it would be awfully difficult to summarize. Representative PRICE. Well, if that is the case, you might select certain parts of it and touch on what you consider to be the most im |