Stanford Law Library 3 6105 062 983 536 COMMITTEE ON ENERGY AND COMMERCE JOHN D. DINGELL, Michigan, Chairman JAMES H. SCHEUER, New York W.J. "BILLY" TAUZIN, Louisiana RON WYDEN, Oregon RALPH M. HALL, Texas BILL RICHARDSON, New Mexico GERRY SIKORSKI, Minnesota JAMES T. BROYHILL, North Carolina DON RITTER, Pennsylvania THOMAS J. BLILEY, JR., Virginia JACK FIELDS, Texas MICHAEL G. OXLEY, Ohio CONTENTS Clark, R. Gene, Director, Nuclear and Alternate Fuels Division, Energy Information Administration, Department of Energy Farley, Edward, president, Atlas Corp., on behalf of the Uranium Produc- Friedman, James M., partner, Benesch, Friedlander, Coplan & Aronoff... Hanrahan, Edward, Director of Defense Policy, Department of Energy.. Longenecker, John R., Deputy Assistant Secretary for Uranium Enrich- Lujan, Hon. Manuel, a Representative in Congress from the State of New Neff, Thomas L., director, International Energy Studies Program, Massa- chusetts Institute of Technology.. Richardson, Hon. Bill, a Representative in Congress from the State of Selby, John D., president, Consumers Power Co... Skeen, Hon. Joe, a Representative in Congress from the State of New Strang, Hon. Michael L., a Representative in Congress from the State of Voigt, William R., Jr., Acting Director, Office of Remedial Action and Material submitted for the record by: Anaya, Hon. Toney, Governor, State of New Mexico, statement. Bangerter, Hon. Norman, Governor, State of Utah, statement. Energy Conservation and Power Subcommittee: Letter from Hon. Dick Cheney to Chairman Markey, October 8, 1985.. Staff memorandum re imports of uranium from South Africa by U.S. Statement of James W. Vaughan, Jr., Acting Assistant Secretary for Nuclear Energy, before joint Senate and House subcommittees, Wyoming Mining Association, William H. Budd, Jr., executive vice presi- 320 DOMESTIC URANIUM MINING INDUSTRY TUESDAY, OCTOBER 8, 1985 HOUSE OF REPRESENTATIVES, COMMITTEE ON ENERGY AND COMMERCE, SUBCOMMITTEE ON ENERGY CONSERVATION AND POWER, Washington, DC. The subcommittee met, pursuant to notice, at 2:50 p.m., in room 2322, Rayburn House Office Building, Hon. Edward J. Markey (chairman) presiding. Mr. MARKEY. Good afternoon. I want to thank all the witnesses for coming here. I also welcome the Members of the Congress and members of the full committee who will be visiting us this afternoon, especially Mr. Richardson, and look forward to hearing his views and the views of the other Members of the Congress who will be testifying today, and other knowledgeable people in the field on the state of the uranium industry which I know is critical to New Mexico, to Mr. Richardson's State, and is of vital interest to many other people in the Congress. However, it is necessary to note that the viability of the uranium industry is not just vital to New Mexico, or Wyoming, or Utah, or Colorado. It is also very important to the nuclear industry, which needs natural uranium to fuel its plants. And, of course, it must interest the ratepayers of nuclear powerplants who ultimately pay the costs for the utility's uranium purchases; 2 weeks ago, the Energy Information Administration released its annual assessment of the uranium industry. This report etches in great detail an industry which has hit hard times and is going through a painful contraction from its earlier days of overbuilt production capacity. The Department of Energy report surveyed the industry for 1984, and in a variety of measures-from employment levels, to capital expenditures, to mining activity-portrayed an industry which is suffering through a difficult adjustment. The adjustment being made is moving from the overly optimistic forecasts for nuclear power made in the 1970's to today's sober reality that not one nuclear powerplant has been ordered in 7 years in this country, and foreign supplies of uranium have flooded the domestic market. After reviewing this report, one is left asking whether the industry will be able to make that transition without assistance. The Secretary of Energy reviewed this report and concluded that the domestic uranium industry was not viable in 1984. Accompanying this determination was an announcement that the Department would take three steps to assist the industry. The first step would be a modification of DOE's enrichment contracts which would encourage utilities to purchase more uranium. (1) |