da. as
material and that AEC continue to purchase it, The Commissioners then
discussed the desirability of continuing to purchase zirconium needed
for the Naval Reactor program, Mr, M.urray proposed that the Commission establish a policy that AEC would continue to purchase
zirconium for the Naval Reactor program. Mr. Vance suggested
that as an alternative, the Office of Defense Mobilization might be
requested to purchase zirconium for both the Department of Navy and
the AEC,
After further discussion, the Commission:
Requested that a study be made of means of funding
for the procurement of zirconium, including the possibility of procurement by the ODM.
Mr, Murray referred to the recent Commission approval of
three naval reactor projects and said he understood that an additional
$2.6 million was necessary in order to begin development of these
reactors. Mr. Cook said that funds had not been available in the FY 1956
budget to begin all of these projects, since requirements for them had been
submitted after approval of the FY 1956 budget. He added that during the
mid-year financial review not enough funds had been available for allocation to begin these projects. However, he pointed out that the necessary
funds had been requested in the FY 1957 budget, Mr. Murray requested
that a study of this matter be prepared including a statement as to whether
the denial of these funds would or wovjd not delay these projects. (See
AEC 47/13, subsequently circulated.)
8,
Additional Power Agreement with OVEC (See Minutes of
Meeting 1175.)
With regard to previous Commission consideration of an additional
agveement with OVEC for the purchase of an additional 150 megawatts
of power, Mr.Murray said he believed the additional agreement should
have at least a five to ten year term instead of the proposed three year
term. He pointed out that under the original long-term contract with
OVEC the Commission was, in effect, paying for the plant and said he
therefore believed the Commission was entitled to as long a term as it
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