Posted on 01/12/2006 6:44:38 PM PST by KevinDavis
LAS CRUCES, N.M. - Two studies released this week say New Mexico is poised to become the hub of the commercial space industry, but state officials must still resolve many issues before that dream becomes reality.
The studies, commissioned by the state Economic Development Department, were conducted by New Mexico State University's Arrowhead Center and the Futron Corp.
The studies agree that a planned spaceport in southern New Mexico has the potential to create thousands of jobs and bring hundreds of millions of dollars into the state. But they both caution that there are many unanswered questions.
New Mexico Economic Development Secretary Rick Homans said those issues can be resolved.
"When you're out front like we are, there are going to be challenges," he acknowledged.
Most questions revolve around the state's ability to attract industry, including who will operate the spaceport and whether taxpayers or private companies will be liable for what happens there.
The NMSU study says one of the biggest issues is safety. An accident could be fatal to the industry and a potential hazard to the people of New Mexico, according to the study.
The state could insure itself and private companies against such incidents, or it could shift the liability to companies by requiring them to carry insurance. It could also force those who take part in activities at the spaceport to waive their right to hold the state or companies liable.
Another unknown is who will operate the spaceport, which needs approval from the Federal Aviation Administration. The state could contract with a university or major company or leave the operation to one of the tenants, such as Virgin Galactic.
The company already has plans to send 50,000 tourists into space during it's first 10 years of operation. Company officials have said 100 people already have paid $200,000 apiece to fly into space.
Regulating what types of vehicles, fuels and launches will be allowed is another issue.
What's clear, according to the studies, is that the state must act now. Several other states, including Texas and Oklahoma, are on New Mexico's heels.
Among the items on the Legislature's agenda starting next week is the first funding request for construction of the spaceport.
According to the Futron study, New Mexico's vision for the Southwest Regional Spaceport has the potential to vault the state and United States into the position of world leader in commercial space transportation and manufacturing.
Homans said the state hopes to attract a cluster of companies to the Las Cruces area that will research, develop and construct the next generations of space vehicles.
The studies say New Mexico's success depends on the ability of the state to offer incentive packages to operators and manufacturers of reusable launch vehicles and rocket-powered aircraft.
While many lawmakers are excited about the spaceport, Rep. Joseph Cervantes, D-Las Cruces, said he wants to learn more about Virgin Galactic's deal with the state and plans the state has for financing the project.
"While it's easy to support the spaceport in principle, the devil is in the details," Cervantes said. "I'm sure the last thing anyone wants to do is create the 21st century version of the ghost town."
New Mexico was smart to attract the business. Virgin Galactic has announced that 40,000 reservations have been recieved. At $200K US that's a revenue stream of $8 Billion. Assume that Virgin Galactic hopes to realize 20% pretax or $1.6 Billion US then the other $6.4 billion US will be spent in New Mexico to operate the tourist flights. Quite a revenue stream.
I spoke with Mr Attenborough who is the VP for Operations for Virgin Galactic at a soiree in Dallas when the Science Place planetarium was reopned after renovation. I met one of the passengers, a local stock broker who could afford the ticket price. I asked Mr attenborough whether he my conduct some of his operations in Texas since we have the wide open spaces and the Aerospace infrastructure in the DFW area to support him. He said, "Haven't given it much thought since New Mexico is supporting us with a $225 Million US space port!!
Oh well.......
The last time I was there, I thought I was wandering through the bar scene in "Star Wars".
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.