Utah's earnings were modest in the first 5 years but have been growing steadily under rising copper prices and increased production capacity. Reinforced by the development of additional reserves, Pima expanded its capacity from 3, 000 to 6, 000 tons daily in 1963, and has just completed a further expansion to 18, 000 tons daily. In the chaotic market for copper during the last several years, Pima has benefited by its agreement with the smelter which requires it to sell half of its output based on the United States producers' price, but permits Pima to take back the balance as copper, leaving it free to sell this half on the open market at S premium prices. Thanks principally to the favorable prices being received, Pima's contribution to Utah earnings was at record levels in 1965 and again for the first half of 1966. In 1958 Lucky Mc Uranium Corporation, then 60% owned by Utah and merged into Utah in February 1960, began the mining and milling of uranium from its properties in the Gas Hills District of Wyoming. Our uranium output was later supplemented by production from an under-ground mine in Shirley Basin with the ore being processed through the Lucky Mc mill some 100 miles away. Uranium operations were initiated against a sales contract with the Atomic Energy Commission, the only customer. The initial contract provided for deliveries through 1962, extended to 1966, and in 1963 again extended to 1970 under the AEC's "stretch-out" program. Ours is a low-cost uranium operation and has been highly profitable, but uranium earnings in 1965 declined from earlier levels because of the reduced quantities that we were permitted to deliver - 7 -