t h e public would h a v e t h e same pro tection it now has i n the event of any industrial disaster, since m a n y compa nies d o not n o w carry insurance a n d the total assets of a company w o u l d b e available to satisfy d a m a g e suits. H o w ever, t h e committee thought that m a n y knotty problems m i g h t arise, particu larly in the case of companies with limited assets, such as cooperatives, or in reactor accidents on university cam puses. T h e committee d i d not like the idea of insuring a p l a n t for unlimited amounts, b u t suggested that some ceil ing, such as $500 million, b e placed on liability for a n y particular accident. Hearings are continuing on other legislative proposals. However, action ^ a t this session of Congress is impera tive, Price said, b e c a u s e several com panies now b u i l d i n g atomic plants have indicated t h e y will not operate t h e m if adequate i n s u r a n c e coverage i s not available.
GOVERNMENT N e w Atomic Insurance Proposal Joint Committee on Atomic Energy takes a look at AEC-sponsored legislation covering atomic hazards
nounced their p r e m i u m r a t e s . He OXILL SLOWING DOWN PROGRESS i n t h e industrial development of atomic en thought that A E C would probably ergy is the question of insurance. An charge some small fraction of t h e com nouncement by private insurance com mercial rate, p e r h a p s 0 . 1 % . In any panies that they are prepared to insure event, Price continued, the premiums eaeri new atomic plant to the extent of could not b e so l a r g e a s to stifle atomic $65 million has improved the situation development, b u t n o determination had somewhat. But inability to obtain in been m a d e as to wliat a m o u n t might b e surance in excess of this figure to cover s e t as a maximum figure. In t h e AEC proposal, no p l a n t opera the possibility of a catastrophic acci dent is causing some potential atomic t o r is required t o purchase the $65 plant builders to hesitate in their plan million worth of insurance available ning. commercially before h e can a p p l y for N o w before Congress are several bills government coverage i n excess of that Charges Against AD-X2 t h a t attempt to solve this vital problem amount. A n operator could carry no .(C&EN, April 2, page 1558). Last insurance or s o m e fraction of the Dismissed week, appearing before the Joint Com a m o u n t available commercially a n d still mittee on Atomic Energy, t h e Atomic b e eligible for government insurance. By a vote of 4 to 0, t h e F e d e r a l Energy Commission unveiled a legisla This prompted S e n . A n d e r s o n t o ask T r a d e Cornmission dismissed false ad tive proposal that the commission thinks whether t h e p u b l i c would b e ade vertising charges against Pioneers Inc., will solve t h e problem. quately protected if an operator h a d no and Jess M . Ritchie, manufacturers of i^AEC's Plan. For t h e next 10 years private insurance. Price explained that battery additive A D - X 2 . F T C comA E C proposes to act as a government insurance agency to indemnify opera tors of atomic plants for damage claims Certificates of Necessity in excess of the amount of insurance available commercially. The same cov Certificates of necessity for 155 new facilities amounting t o $342,726,000 were erage would b e extended to designers granted by the Office of Defense Mobilization during t h e period Apr. 5 through a n d builders of these atomic plants as May 2 . Certificate grand total n o w stands at $35,383,689,000 for 20,998 facilities well as suppliers of equipment, mate a t an average of 60% allowable for rapid tax amortization. Certificates of rial or services. chemical interest a r e below. Other features of the legislation pro PRODUCT OR SERVICE N/LvrE OK CoM:PAI^5^i' A N D PERCENTAGE AMOUNT LOCATION OF F A C I L I T I E S ALLOWED CERTIFIED posed by A E C are; • Rates charged for government in surance will bear some relation to in surance company premiums, b u t will n o t be so high as to discourage partici pation in atomic energy development. • To finance insurance activities a fund of $500 million is established. • No ceiling should b e placed on the amount of government insurance that c a n be provided for a single plant. > Controversial Points. W h a t con stitutes a reasonable premium charge for government insurance in the AEC plan provoked considerable question i n g by t h e committee. Chairman Clin t o n P. Anderson (D-N. M.) wanted t o know w h a t rates would be charged and w h a t the basis of calculation would be. Director of AEC's division of civilian application, Harold L . Price, said that n o definite figures had been established. Principal reason for this is that insur a n c e companies have n o t yet an 2644
C&EN
MAY
2 8,
1956
Aurora Gasoline and Old D u t c h Refining Muskegon, Mich. Bankline Oil Company BakersBeld, Calif. Continental Oil Ponca City, Okla. Cosden Petroleum Big Spring, Tex. Cosden Petroleum Big Spring, Tex. Cosden Petroleum Big Spring, Tex. Phillips Petroleum Borger, Tex.
Oil refining facilities
Phillips Petroleum Sweeny, Tex.
Oil refining a n d alkylate facilities
Pontiae Refining Corpus Chris ti, T e x . Salt L a k e Refining Nortih Salt Lake, U t a h Shell Oil Roxanna, ΠΙ. Standard Oil of Calif. Honolulu, T. H .
Oil refining facilities
Westland Oil Williston N. D . American Gilsonite Grand Junction, Colo. Allegheny Ludlum Steel Watervliet, Ν. Υ. Goodrich-Gulf Chemicals Avon Lake, Ohio
Oil refining facilities
. Oil refining facilities Oil refining facilities Oil refining facilities Oil refining
facilities
Oil refining
facilities
$ 2,463,000 739,000 40,000 608,000
65 40 15 65
2,311,374 442,200 2,250,000 500,000 1,100,000
65 45 65 45 65
137,000
65
550,000 350,000 8,300,000 6,400,000 12,690,000 14,225,000 6,185,000 400,000 203,000 1,721,000 249,000 1,000 10,550,000 3,450,000 1,784,000 12,461,000 16,883,000 962,000 402,040
100 65 50 20 100 65 45 15 45 65 65 40 65 45 100 65 45 15 65
Research a n d development
6,865,000 1,719,000 235,000 280,000
45 15 60
Research a n d development
732,758
60
Oil refining a n d alkylate facilities
Oil refining facilities Oil refining facilities Oil refining a n d alkylation facilities
Petroleum refining facilities
65
