The response to these temptations was tremendous, and the Western Hills were covered with prospectors - amateur and professional. By 1958 Uncle Sam had to holler "uncle" and refused to enter into new purchase contracts thereafter. The short-lived but intensive exploration effort had developed a peak reserve of some 240, 000 tons of but in 1959 it stopped dead in its tracks and no significant discovery has been reported since that time. The AEC was so embarrassed by its financial commitments that it sought ways to reduce its annual outlays and finally induced most of the major producers with the reserves to do so to stretch out their contract to 1970. Ten companies did so because it allowed us to keep operating and brought us four years closer to the time when a civilian market might develop. Uranium production hit its peak in 1961 - about 18,000 tons - and has since declined steadily with 1966 production amounting to only 9, 500 tons and 1967 estimated slightly lower. But the 1967 estimate contains for the first time a civilian demand of significance - 1, 330 tons and from here on out the civilian demand should increase as the AEC purchases decline and then cease. During the 1950's - indeed even into the early 1960's - the use of uranium as a raw material for the generation of electricity was considered by virtually all of us to be too remote to affect investment decisions and something that might be a factor of some consequence after 1975 but not before. - 2 -