Spacelift Washington: Senate Gives Space Launch Indemnity 4 Year Extension

Washington, Oct. 13- With a week to go before adjournment, the U.S.
Senate approved extension of space launch indemnity for four years
Friday, keeping U.S. commercial launch firms from facing potential
bankruptcy should a commercial rocket launch end in disaster. The
provision gives launch firms up to $1.5 billion in U.S. guaranteed
liability protection should 3rd parties suffer injury from a launching
accident. No such injury has ever occured in the history of the Space
Age.

The bill, H.R. 2607 must now pass the House in its final form. Sources
tell Spacelift Washington that the Senate made slight modifications to
the original House language. Copies of the specific bill text were not
yet available at press time.

Commercial launch providers must provide their own insurance protection
up to $500 million for U.S. firms. The federal government provides the
indemnification beyond the $500 million up to $1.5 billion.The
provision, contained in the original 1988 Commercial Space launch Act,
had expired and was renewed only for 1 year in 1999. The indemnification
clause was set to expire again on Dec. 31 2000.