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Later, the Office took further steps designed to simplify the licensing process for launch operators with established safety records. For example, before issuing its final rules in 1988, the Office issued interim regulations, in which it had contemplated the possibility that "one license could cover a specified series of launches where the same safety resources [would] support identical or similar missions." Commercial Space Transportation Licensing Regulations; Interim Final Rule and Request for Comments, 51 FR 6870, 6872 (Feb. 26, 1986). In 1991, the Office implemented this option by instituting a launch operator license for similar launches carried out by a single licensee. The launch operator license currently authorizes a licensee to conduct any number of launches within defined parameters over the course of a two year period. The FAA has continued to apply a case by case analysis to licenses authorizing a single launch or to licenses authorizing a set of specifically identified launches.
The FAA, in accordance with 49 U.S.C. § 70112 and 14 CFR Ch. III, part 440, imposes financial responsibility requirements on a licensee, commensurate with the scope of its license, pursuant to which a licensee is required either to purchase insurance to protect launch participants in the event of claims by third parties and to protect against damage to government property, or to otherwise demonstrate financial responsibility. In the event that there were a launch accident and third party claims arising out of that launch exceeded the financial responsibility required by the FAA, the Act contains procedures through which the government of the United States may pay those excess claims up to a statutory ceiling. See 49 U.S.C. § 70113. The possible payment of excess claims by the government for damages related to a particular launch is commonly referred to, albeit erroneously, as "indemnification" of the launch industry. The payment of excess claims constitutes, in fact, only a provisional agreement by the government of the United States subject to conditions, including Congressional appropriation of funds.
Growth and Current Status of Launch Industry
The number of commercial space launches has steadily grown over the years since the first licensed commercial launch in 1989. As of ______, February, 1999, ______ 108 licensed launches have taken place from five different federal launch ranges. Launch vehicles have included traditional orbital launch vehicles such as the Atlas, Titan and Delta, as well as suborbital vehicles such as the Starfire. New vehicles using traditional launch techniques include Lockheed Martin’s Athena I and II, EER’s Conestoga, Orbital Sciences Corporation’s Taurus, and Boeing’s Delta III. Unique vehicles such as the Pegasus are also included in this count. New launch vehicles are proposed every year. For example, the Pegasus air-launched rocket has been developed since the passage of the Act. On the horizon are sea-launched rockets, Lockheed Martin’s Atlas III and Boeing’s and Lockheed Martin’s evolved expendable launch vehicles. A number of companies are proposing partially and fully reusable launch vehicles. Several companies are participating in partnership with the National Aeronautics and Space Administration (NASA) to develop X-33 and X-34 launch vehicles incorporating reusable and single-stage-to-orbit technology, which could result in vehicles for commercial use.
Currently, commercial launches take place from federal launch ranges operated by the Department of Defense and NASA. Launch operators bring launch vehicles to federal ranges such as Cape Canaveral Air Station, Vandenberg Air Force Base, White Sands Missile Range and Wallops Flight Facility for launch. A launch operator obtains a number of services from a federal range, including radar, tracking and telemetry, flight termination and other launch services. Pursuant to an agreement between a federal launch range and a launch operator, the federal range has final authority over decisions regarding whether to allow a launch to proceed. A federal range operates pursuant to its own internal rules and procedures, and the launch operator must comply with those rules and procedures in addition to the requirements of the FAA.
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Commercial Space Transportation Licensing Regulations(3)
