treaty partners-without delay and under the treaty's provisions the benefits of such explosions." Two major steps are required to produce on this promise and to provide our own domestic Plowshare industry with a charter under which it can operate: The AEC must be given authority to supply the necessary devices on a businesslike basis, and it must put a full line of them on its shelves, complete with price tags. Presently the Atomic Energy Act of 1954 permits AEC to make the explosions available only for R&D, as distinguished from industrial, purposes. I am preparing legislation to allow the AEC to supply industry with nuclear explosions at established prices on a routine basis. I use the term "explosions" because at all times the devices involved would remain in AEC custody and control to insure safety and security. Presently the AEC's Plowshare work is largely experimental. Emphasis must be shifted to fabricating a sophisticated line of Plowshare explosives so that industry can count on price, terms and delivery of a variety of required yields at specified times to permit regular scheduling of operations. This can be done without changing the law, and I urge that it be done administratively. I visualize that the pricing of these products, in accordance with public statements of AEC Chairman Glenn Seaborg, will not include costs associated with R&D. However, in addition to the cost of the explosives, they would include outlays associated with emplacing and firing them and those involved with assuring the security and the safety of their use. Thus, it is that the safe, economical and convenient Plowshare peaceful nuclear explosives program is now on the threshold of making handsome financial and foreign policy returns for the investment the United States has made in it. History shows us that conventional explosive have, on balance, been used more for good than evil. I am convinced that Plowshare will do the same for nuclear explosives. I hope my remarks today have transferred to you a small portion of my own enthusiasm and support for the program. APPENDIX 3.-EXPLANATORY REMARKS BY CONGRESSMAN HOSMER TO THE HOUSE OF REPRESENTATIVES ON JULY 10, 1968 PLOWSHARE PROGRAM The SPEAKER pro tempore. Under previous order of the House, the gentleman from California [Mr. HoSMER] is recognized 30 minutes. Mr. HOSMER. Mr. Speaker, today all House members of the Joint Committee on Atomic Energy have joined me in the introduction of H.R. 18448 to lay the foundation and establish guidelines for the commercial use of an atomic energy application which is rapidly approaching commercial feasibility. I refer to the development of nuclear explosive devices for peaceful purposes-more popularly known as the Atomic Energy Commission's Plowshare program. Those who have joined me in this effort are Representatives Holifield, Price, Aspinall, Morris of New Mexico, Young, Bates, Anderson of Illinois, and McCulloch. In our opinion we stand on the threshold of the commercial era in Plowshare and at the frontier of possibly untold benefits. The last 6 months particularly have seen giant technical strides forward. On December 10, 1967, Project Gasbuggy, a natural gas stimulation experiment, was detonated 4,200 feet underground in New Mexico. Natural gas is now flowing through rock fractured by the explosion and being pumped to the surface where it is undergoing analysis. That project was followed on January 26, 1968, by Project Cabriolet, an excavation experiment which produced a large hole in the hard rock of the Nevada test site. There followed on March 12 the much more remarkable and phenomenally successful Project Buggy. This country's first nuclear row charge experiment, Buggy gouged a ditch 850 feet long, 250 feet wide, and 65 feet deep in a fraction of a second; a ditch smooth sided and bottomed enough for anyone's canal albeit a miniature one in length, it is full scale in width and depth. The rapid progress that has been achieved is the more startling and impressive when one considers that the first experiments to turn our nuclear sword into a Plowshare did not take place until 1961. From 1958 to 1961, when the program was in its infancy, it fell victim to the moratorium on nuclear testing which prevailed at that time. In December 1961 and July 1962—first in Project Gnome, and then in Project Sedan-the initial experiments in the peaceful use of nu clear explosions occurred. Thus it is fair to date the technological beginning of Plowshare from 1961. Despite subsequent nuclear testing slowdowns and limitations caused by overzealous disarmers and sometimes shortsighted budgeteersespecially self-imposed limitations arising from an overly strict interpretation of the Limited Nuclear Test Ban Treaty-steady technological progress has been made. This progress culminated in the successful recent experiments I mentioned a moment ago. These and many other experiments have demonstrated that peaceful nuclear explosive devices can be used safely, surely and compared to the cost of conventional explosives-cheaply. Additional experimentation will, of course, be required to proof-test the feasibility of using such devices in various media and for the large number of purposes for which these devices appear ideally suited. It is readily apparent that we have just begun to scratch the surface of a rich vein of applications, and that much remains to be done if the full benefits of this promising technology are to be derived. That private industry is ready, willing and able to cooperate in meeting this challenge is exemplified by the veritable "Who's Who" in industry that has come forward to take part in cooperative ventures with the Government. Private industry has been quick to recognize the important implications of this technology to such endeavors as copper and natural gas recovery and storage and implace oil shale retorting. A number of private firms have indicated keen interest in joining with the Government in cooperative projects under which they would share in the costs of the experiments. Some of the worthwhile tasks for which peaceful nuclear explosive devices seem admirable tools are more fully described in a speech which I delivered before the Commonwealth Club of California on July 5 and it is set forth at the conclusion of these remarks.1 In view of this widespread interest and the highly encouraging results from Plowshare experiments to date, it seems clear that the time has come to consider legislation which would provide the authority necessary for the Atomic Energy Commission to proceed beyond the research and development stage in this rapidly evolving technology. The Congress should anticipate the commercial development of this technology, rather than merely respond to it. When the time arrives, as I think it soon will, that particular Plowshare applications have demonstrated economic feasibility, the Commission should be in a position to make such explosions available under a legislatively sanctioned arrangement whereby the Government's role would be essentially one of providing a service for an appropriate fee. The Treaty on the Nonproliferation of Nuclear Weapons which the Senate now has before it for its advice and consent provides another reason for early legislation along the lines I propose. Whatever one may think of that treaty, given its basic objectives, or the way it seeks to implement them, its article V prohibits non-nuclear-weapon countries from making their own peaceful nuclear explosives as it does their own nuclear weapons. Our country wisely and rightly, in my opinion, recognized that in view of this prohibition a heavy obligation devolves on it to provide the benefits of the technology whose development non-nuclear-weapon signers will be forswearing. This obligation was underscored in the President's statement to the United Nations on June 12 and on the occasion of the signing of the treaty on July 1. The President has stated and restated that the United States is prepared to make available to other countries nuclear explosion services for peaceful purposes on a nondiscriminatory basis under appropriate international arrangements. He has also committed us to make these benefits available "without delay." The Congress should act now to establish the framework within which these services shall be made available to other nations and to our own domestic industry. At the same time let us hope that the administration will hasten the research, development, and experimentation necessary to insure that these benefits will exist as we have promised they would. Under H.R. 18448, the Commission will at all times retain custody and control of the nuclear explosive device. As we conceive the AEC's role, it would emplace the device, detonate it, and impose such other controls as would be necessary to protect health and minimize any danger to life or property. The prices to be charged by the Commission for such services would be established on a nondiscriminatory basis and be such as to provide reasonable compensation to the Government. 1 See App. 2, p. 38. Services to be performed abroad by the Commission could be carried out only in accordance with an agreement for cooperation arranged pursuant to section 123 of the Atomic Energy Act. Thus the President, who must approve such agreements, and the Congress through the Joint Committee, to which any such agreement must be submitted for a specified period before becoming effective, would have ample opportunity for continuing surveillance of this important program. This, Mr. Speaker, is a brief summary of the more significant features of H.R. 18448. I would be the first to recognize that this bill may require further refinements before it is ready for final passage. I anticipate that the Atomic Energy Commission, the Department of State and other interested agencies may have some helpful suggestions to strengthen the bill. I particularly look forward to learning their views on such related matters as the provision of financial protection by domestic and foreign users, possible licensing requirements for users, and so forth. The State Department may also be in a position to tell the Congress what steps it is taking to assure that the Test Ban Treaty will not hamper the further development of this technology and will not hamstring the President from fulfilling some of the commitments he has made in connection with the proposed Nonproliferation Treaty. Without an appropriate amendment to the Test Ban Treaty or other appropriate action it is exceedingly difficult to understand how the President will be able to make some of the most promising plowshare uses available to small nations where, because of their size, harmless amounts of radioactive debris might be carried beyond their territorial limits. The text of H.R. 18448 appears on page 1. APPENDIX 4.-ADDITIONAL STATEMENTS SUBMITTED FOR THE RECORD Hon. JOHN O. PASTORE, LA JOLLA, CALIF., July 16, 1968. Passage of an amendment to the AEC act similar to that proposed by you, Congressman Hosmer, and your colleagues, on the JCAE to permit the AEC to sell peaceful nuclear detonation services will provide real encouragement and stimulation to the Plowshare program, such passage will underscore the intent of the Congress to see Plowshare activities move from the domain of the AEC into the industrial arena. In addition, prompt action on this bill will provide dramatic proof of the firm intention of the United States to make the benefits of Plowshare explosives available to all mankind as promised in article 5 of the Treaty on the Nonproliferation of Nuclear Weapons. Nuclear explosions for peaceful purposes may well have a profound effect on the economies of all countries in the years ahead. This proposed legislation will advance the date and increase the certainty of Plowshare contributing to a better future for all of us. I request that this statement be inserted into the record of the hearing on this legislation. We support the intent of H.R. 18448 to allow the Atomic Energy Commission to provide services involving the detonation of nuclear explosive devices for peaceful purposes. It is most timely and important to encourage private analysis and evaluation of the economic and commercial impacts of Plowshare. These require a detailed understanding of the mechanisms, and prices, under which AEC will provide services both domestically and internationally. H.R. 18448 will provide not only the required legislative framework but will initiate within the executive branch and the industry the formulation of the precise arrangements and relationships which would be used. This would not 98-179 0-68 only assist industry in evaluating the direct impact of Plowshare on its activities, but would also allow it to assess the extent to which it could participate with the AEC in bringing services to others, both in the United States and appropriate other countries. FREDERIC DE HOFFMANN, President, Gulf General Atomic. Mr. JOHN T. CONWAY, CONGRESS OF THE UNITED STATES, HOUSE OF REPRESENTATIVES, Executive Director, Joint Committee on Atomic Energy. DEAR MR. CONWAY: Enclosed please find my statement in support of H.R. 18448, which I would like included in the permanent record of the Committee's hearings on the bill. Thank you. Yours sincerely, JOHN J. RHODES. STATEMENT OF THE HONORABLE JOHN J. RHODES, FIRST DISTRICT OF ARIZONA Mr. CHAIRMAN. I am in favor of H.R. 18448. Research and development in the peaceful applications of atomic energy, under the auspices of the Atomic Energy Commission, has yielded a vast storehouse of information which can and should be put to use as soon as is possible and practicable. H.R. 18448 amends the Atomic Energy Act of 1954 to authorize the Atomic Energy Commission to enter into contracts for the provision of services for the detonation of nuclear explosives for peaceful purposes. The public would become the chief beneficiary of legislation such as this which would encourage, under appropriate circumstances, the increased application of nuclear energy for the betterment of the lives of our citizens. My own familiarity with the strides which have been made for the peaceful uses of atomic energy is in the field of water resources. Through programs such as the AEC's Operation Plowshare, research scientists and engineers have been examining the ways in which our pressing water problems could be solved by harnessing atomic power and putting it to work. In this regard, my own state of Arizona recently undertook, along with the AEC, a preliminary study of the possible use of nuclear energy to help meet Arizona's increasing water needs. General indications from previous studies are that the chimney of broken rock formed by an underground nuclear explosion might be used to channel surface water to depleted acquifers, naturally formed underground reservoirs. Also of interest is the possibility of using nuclear explosions to construct dams to retard the runoff of surface water that could then be diverted to other uses. For many years, the AEC has been studying the use of nuclear explosives to solve water needs. In fact, studies have been made of their application to expand the Panama Canal or, indeed, to dig a replacement canal. Other studies undertaken in this field have examined the feasibility of a national network of waterways, to be constructed of canals dug by nuclear detonation. Research of this nature should be applied wherever safe and practical, and H.R. 18448 would be a most positive step in that direction. It should be noted that there are safeguards included in this legislation which adequately provide for the safety of the public, protect the security of the government, and regulate economic considerations, such as the setting of prices for AEC services. Thus, H.R. 18448 could achieve its objectives in a manner most beneficial to the general public. Mr. Chairman, the praiseworthy work of the Atomic Energy Commission should be made available to the public, and to private enterprise, so that we can all benefit fully from the Commission's know-how and expertise. I am certain that there are discovered daily new and diverse applications of atomic power, applications which can benefit all mankind. H.R. 18448 would encourage such application, through a working partnership between government and private enterprise. For these reasons, Mr. Chairman, I support H.R. 18448 and respectfully urge its favorable consideration by members of this Committee. Thank you. GEONUCLEAR CORP., Hon. JOHN O. PASTORE, Las Vegas, Nev., July 30, 1968. U.S. Senator, Chairman, Joint Committee on Atomic Energy, U.S. Capitol Building, Washington, D.C. DEAR SENATOR PASTORE: CER Geonuclear Corporation fully supports H.R. 18448, introducted by Mr. Hosmer for himself and other members of your Committee, to enlarge the Atomic Energy Commission's authority to make peaceful nuclear explosive services available to domestic and foreign users. This bill is very timely-not only because it will permit the United States to meet its national and international commitments, but, also, because of the stimulus which it will give the Plowshare Program. There is, today, great industrial interest in Plowshare applications. Not all of these applications can be justified under the Commission's experimental authority, although some of them could be of enormous public benefit. Commercial authorization will be necessary to make such applications a reality. Moreover, enactment of this bill should stimulate the development of other requisites for a commerial Plowshare industry, such as private insurance, optimum devices, and a stronger and more broadly-based service industry. Your Committee is to be congratulated for its foresight and for the strong support which it has given to the Plowshare industry. Very truly yours, JOHN M. BERLINGER, General Counsel. COLUMBIA GAS SYSTEM SERVICE CORP., New York, N.Y., August 1, 1968. Hon. JOHN O. PASTORE, Chairman, Joint Committee on Atomic Energy, DEAR MR. PASTORE: I would like to express the support of the Columbia Gas System, Inc. for the proposed bill HR 18448 now being considered by the Joint Committee on Atomic Energy. It is our belief that the proposed legislation is in the best interests of the natural gas industry, commerce and industry in general, and will ultimately enhance the material welfare of the people of the United States of America. The proposal to permit commercial peaceful use of nuclear explosives can only benefit mankind when such activities are undertaken with proper safeguards and in an appropriate manner. While there remains much to be done in the way of developing new peaceful applications, it is clear now that some of the processes proposed for demonstration projects will approach commercial practicality very shortly. Enabling legislation of the nature reflected in HR 18448 will encourage and stimulate further progress in the development and growth of this important new technology. There has no doubt been some reluctance on the part of industry to expend money on this type of research while actual commercial implementation could only exist as a somewhat remote and nebulous promise. Much of the early practical interest of the Plowshare Program has focused on areas essential to the natural gas industry. The development of gas stimulation techniques with its potential of greatly adding to the nation's natural gas reserves, and the more immediately pressing need to develop suitable underground gas storage reservoirs near the high density regions of gas consumption are major problems that are vital to our ability to serve the gas consumer. Although the initial thrust of the Plowshare Program has been focused in the natural gas direction, we believe that the developments now being considered are only the forerunners of a wide variety of related applications in other industries. The matter of breaking rock far underground to permit the release of natural gas can be extended conceptually to other areas of mineral extraction including petroleum, oil shale, metallic ores, coal and so on. Similarly the concept of gas storage now under consideration can logically be extended to oil storage, water storage, and waste disposal for nuclear and other industrial toxic substances. For many years the gas industry has been able to develop ample gas reserves by drilling conventional wells. Similarly where available near a market area, |