regulations relating to safety and thermal pollution appear to becoming ever more stringent. During the first 6 months of 1968, 12. 9 million kilowatts of new nuclear capacity were announced compared to 18.9 million kilowatts during the same period in 1967. Whether this is a temporary and normal adjustment, or represents some present reluctance to commit to nuclear is not clear. In my opinion, coal-fired plants will continue to be vigorous competitors to nuclear facilities in many areas of the country, although I must confess that the wage increases during the past two years, and particularly the most recent settlement, have cost the coal industry some marvelous opportunities to capture a greater portion of the market. On the supply side, it is apparent that we must find substantial new reserve if we are to meet even the most conservative estimates of future demand. And I am certain that we shall do so. The question is at what price? Certainly not, at the $4.00 to $5.00 price which some predicted a few years ago. Neither does it seem prudent to plan exploration and development outlays based on the expectation of a $10 - $12 price which some forecasters have suggested. So it is certain that we will face problems, but this is typical of an industry experiencing rapid growth, and as such, these problems can be faced with enthusiasm. We at Utah think the industry has a bright future, particularly for those companies with substantial uncommitted reserves or the ability to find new reserves. At Lucky Mc, we have reserves estimated to be 4. 7 million tons averaging 0. 23%. U3O8 substantially all of which is mineable by open pit methods Contracts now in hand will provide for capacity of operations of the Lucky Mc mill through late 1972. -6-