Business legal working group outbrief
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Business / Legal Working Group Outbrief. Chris Kunstadter ( Chair ) & Russ McMurry ( Vice Chair ). BLWG agenda t opics. MPL methodology review GSO and NGSO forecasts Waivers for many payloads and other Part 440 Mods

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Business / Legal Working Group Outbrief

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Business legal working group outbrief

Business / Legal Working Group Outbrief

Chris Kunstadter (Chair) & Russ McMurry (ViceChair)


Blwg agenda t opics

BLWG agenda topics

MPL methodology review

GSO and NGSO forecasts

Waivers for many payloads and other Part 440 Mods

Development of a legal framework for private exploitation and utilization of space resources

Long-term extension of third-party risk-sharing regime

Strengthening of informed consent protection from unrestricted second-party litigation

Inclusion of spaceflight participants in third-party indemnification

NASA termination liability


Mpl methodology r eview 1 2

MPL methodology review (1/2)

Telcon Jan 25, 2013 – 50+ participants

Recommendations for organizations to perform MPL review

ACTA

White Sands Research and Development

Various “cat” modelers – catastrophe risk analysis for the insurance industry

AIR, Eqecat, RMS, etc.

Recommendations forwarded to FAA AST


Mpl methodology review 2 2

MPL methodology review (2/2)

Finding: COMSTAC finds that FAA AST’s assigned task has been addressed, and remains ready to support further work on the MPL methodology review.


Gso and ngso forecasts 1 2

GSO and NGSO forecasts (1/2)

Forecasts completed and ready for issuance

Forecasts show strong near-term growth in NGSO launch activity and steady level of GSO launch activity

Realization factors temper optimistic forecasts; but expanding applications and markets in communications, earth observation, technology demonstration, and human spaceflight drive future growth

Forecasts will be available shortly on FAA AST web site


Gso and ngso forecasts 2 2

GSO and NGSO forecasts (2/2)

finding: COMSTAC finds that the annual GSO and NGSO reports are important resources, not just for FAA AST but also for industry and other government agencies. These reports are extensively used for planning and business development throughout the space industry, and should continue to be produced annually.


Waivers for many payloads and other part 440 mods 1 2

Waivers for many payloads and other Part 440 Mods (1/2)

FAA AST requested COMSTAC’s views on customer flow-down:

Require licensee to sign cross-waivers only with customers that have directly contracted with the licensee.

A customer of a customer contracting with a licensee would sign cross-waiver only with the original customer, not all launch participants

A “second-tier” customer would still have to agree to waive claims against all launch participants, and

The original customer would have to indemnify other launch participants if it failed to obtain such a waiver from the “second-tier” customers


Waivers for many payloads and other part 440 mods 2 2

Waivers for many payloads and other Part 440 Mods (2/2)

“Clean-up” issues

Third-party beneficiaries

Cross-waiver with no customer

Finding: COMSTAC finds that FAA AST’s work on (a) the customer flowdown issue, pending clarification of the relationships and potential interactions of contractors, customers, and others (e.g., aggregators); and (b) the “clean-up” issues should be pursued.


Develop a legal framework for private utilization of space resources 1 2

Develop a legal framework for private utilization of space resources (1/2)

Appropriation

Responsibility

Ownership

Property rights

Treaty applicability

Commercial vs commercial

Licensing

Intersection of law, politics and enlightened self-interest

Priority is for interested parties to co-operate


Develop a legal framework for private utilization of space resources 2 2

Develop a legal framework for private utilization of space resources (2/2)

Recommendation: COMSTAC recommends that FAAAST support efforts in Congress and through the Department of State to confirm the right of private sector companies to enjoy the benefits of resources extracted from the surface or subsurface of the Moon and other celestial bodies, subject to appropriate regulationsupervision by a relevant U.S. government entity such as FAAAST.


Long term extension of third party risk sharing regime 1 2

Long-term extension of third partyrisk-sharing regime (1/2)

Finding: COMSTAC finds that, under the current U.S. launch indemnification regime, licensees are required to protect the U.S. government from legal liability up to the maximum probable loss (MPL), at no direct cost to the government, with the expectation that the government will continue to be authorized to seek an appropriation to pay certain excess claims above the MPL, on behalf of all launch participants.


Long term extension of third party risk sharing regime 2 2

Long-term extension of third partyrisk-sharing regime (2/2)

Recommendation: COMSTAC recommends that FAA AST urge Congress to permanently extend the current U.S. launch indemnification regime because it protects the U.S. government from substantial third-party liability claims up to the MPL, at no direct cost to taxpayers.


Strengthening of informed consent protection from unrestricted second party litigation 1 4

Strengthening of informed consent protection from unrestricted second-party litigation (1/4)

Observation: COMSTAC observes that, while the Commercial Space Launch Act requires that licensees obtain informed consent from their spaceflight participant customers, it is silent on the issue of does not preclude potential claims from participants and their heirs and estatesin the event of a flight incident or accident.


Strengthening of informed consent protection from unrestricted second party litigation 2 4

Strengthening of informed consent protection from unrestricted second-party litigation (2/4)

Finding: COMSTAC finds that, to encourage the successful growth of the commercial space flight industry, operators, manufacturers, suppliers, and other contractors, should enjoy a predictable and consistent legal environment where they can be held accountable for deliberate malfeasance or gross negligence, but not for the inherent risks associated with human spaceflight.


Strengthening of informed consent protection from unrestricted second party litigation 3 4

Strengthening of informed consent protection from unrestricted second-party litigation (3/4)

Observation: COMSTAC observes that commercial spaceflight activities legally implicate the federal government because the U.S. is a signatory to international treaties making nation-states liable for certain losses arising from space activities of non-governmental entities.


Strengthening of informed consent protection from unrestricted second party litigation 4 4

Strengthening of informed consent protection from unrestricted second-party litigation (4/4)

Finding: COMSTAC finds that cross-waivers of liability among all parties on the licensee side of the launch activity should be required, and Federal courts should decide legal cases regarding any element of the federal license, including the legal validity of anywaiversof claims signed by spaceflight participants, after being fully informed as to the risks of the spaceflight.


Inclusion of spaceflight participants in third party indemnification

Inclusion of spaceflight participants in third-party indemnification

Recommendation: COMSTAC recommends that FAA AST work towards modifying CSLA language to specifically include spaceflight participants in third-party indemnification. Spaceflight participants are explicitly excluded from Federal indemnification, and not listed in law as a party to be protected by the licensee’s insurance.


Nasa termination liability

NASA termination liability

Recommendation: COMSTAC recommends that FAA AST support termination liability reform at NASA in order to protect commercial and NASA programs from being exposed to overly burdensome termination liability costs. Specifically, a reasonable ceiling should be set on termination liability assessments that reflects historic programmatic cancellation rates at NASA.[WITHDRAWN]


Thank you

Thank you!

Christopher T.W. Kunstadter

Senior Vice President

XL Insurance

+1 212-915-6387

[email protected]


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