in 1969 and 1970 when we will be required to sell approximately 2 million pounds to the A. E. C. at the formula price which will be very materially lower than we are presently receiving. However, our total contracts now in hand require us to sell 3 1/2 million pounds to the A. E. C. through 1970 and another 10 1/2 million pounds to private buyers through December 1975. The private sales now average $6.17 a pound with the price during the last five years subject to escalation, and the newer sales are being made at higher prices for the later deliveries. Our present milling capacity of around 2 million pounds at the Lucky Mc Mill is practically sold out through 1972, and we have under intensive study the prospect of converting our mining operations in Shirley Basin from solution mining to open pit and building another mill in that area in the early part of the 1970's to take care of the greater demand we anticipate will be forthcoming at that time. While our uranium earnings are bound to feel the impact of the change in price from the A. E. C. in '69 and '70, this is a burden we will be willing to bear to be a low-cost producer in a rapidly growing industry. We are more concerned about the long run than the short run. In the early 1950's Utah concluded that the growing demand for energy in the West, coupled with technological strides in the generation and transmission of electricity would bring about the need for large low-cost coal deposits to augment other sources of energy. By 1954 we had located two such coal deposits, one in New Mexico on the Navajo Indian Reservation and another near Craig, Colorado. More recently we added a third deposit near Kanab, Utah. It took some time to convince others -9-