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6, AEC 785/12 - Indemnity of Privatel: Owned Atomic Energy
Facilities
Mr. Mitchell said that the sropcsed legislation under
consideration had been prepared on the assumption that the
Cornmission believed that some protection from the financiai
risk of a veactozr catastrophe was necessary, in addition to
that available from private sources, in order to encourage
companies to build and operate power reactors, He said the
staff believed the most practical form for this protection to
take was indemnity of losses, particularly for third-party
public iiability, above the amount which was available from
private sources, Mr. Murray said he believed legislation
during this session of Congress was imperative,
Mr. Mitchell pointed out that the difficulty of developing
an insurance prosram was Gue to the fact that the possibility of
a catastrophe was so remcte tnat the prcbability or extent of the
risk could not be calculated, However, ne said the Bureau of
the Budget would probably suggest that provision be made for a
ve-insurance program, He then reviewed at length the staff's
proposals and various alternatives which had been considered,
Mz, Murray said his major concern was wnetner the
preposed bill eliminated all obstacles ci this nature to the construction of power reactors by private companies. If it would do
so, he said, he favored its approvai,
Mr. Mitchell said the proposed bill wouid make available
uniimited indernnity for financial losses resulting from a reactor
catastropne,
Mr, Libby suggested that testimony be prepared, for use
during the JCAE insurance hearings, summarizing the 4EC’s
hazard experience in the operation of production reactors,
After further discussion, Commissioners Libby and Murray
indicated that they approved the recommendation of \EC 785/12 and
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