Risk Management Working Group May 11, 2011

1. Risk Management Working GroupMay 11, 2011 Chris Kunstadter Senior Vice President XL Insurance (+1) 212-915-6387 chris.kunstadter@xlgroup.com

2. RMWG Topics Commercial launch indemnification regime extension expires December 31, 2012 FAA/AST public hearing on “Regulatory Approach for Commercial Orbital Human Spaceflight”, May 26, 2011 White House’s pending review of 2004 U.S. Space Transportation Policy

3. U.S. Space Transportation Policy Review National Security staff & OSTP request industry input for planned White House review of 2004 U.S. Space Transportation Policy COMSTAC to provide written feedback to FAA by May 26, 2011 White paper on topics of interest to U.S. industry (10pp max) Individual company or association inputs on specialized areas of concern (2pp max each) WH staff to address COMSTAC tomorrow on this task

4. History – The 2004 Policy • “…ensure the Nation’s ability to maintain access to and use space for U.S. national and homeland security, and civil, scientific, and economic interests.” • Followed 2004 Space Exploration Policy and Columbia accident • Recognized replacement of Shuttle with crew exploration vehicle

5. 2004 Goals and Objectives • Ensure availability of reliable and affordable transportation • Demonstrate operationally-responsive capability • Develop human space exploration beyond low earth orbit • Technology development for next generation space transportation with focus on reliability, responsiveness and cost • Encourage and facilitate U.S. commercial space transportation industry • Sustain and promote domestic industrial base to meet national security and civil requirements

6. What’s Changed? • Shuttle retiring, Constellation on hold • Civil space programs under pressure • Global economic conditions have deteriorated • Commercial space transportation flourishing • Regular commercial human spaceflight imminent

7. What Can We Do To Achieve… • Availability? • Reliability? • Responsiveness? • Affordability?

8. Creation of actionable language and activities that the U.S. Government can do to foster the U.S. industrial base and competitiveness. For example, The U.S. Government should become a stable, predictable, reliable user of commercial launch services The U.S. Government should facilitate certification and licensing of new entrants Goal of reducing the cost of commercial launch services to enhance competitiveness of the U.S. launch industry in the international marketplace, and to fundamentally transform the U.S. into a spacefaring nation Extension and expansion of the liability risk-sharing regime, including limiting liability associated with human spaceflight participants Reform of the export control process to ensure competitiveness of the U.S. commercial space industry U.S. Space Transportation Policy

9. U.S. Space Transportation Policy Support for NASA to provide sufficient resources for the development and use of commercial human and cargo spaceflight FAA/AST is both the proper and the legal entity to issue licenses for commercial human spaceflight, including NASA’s commercial crew program Critically important role of FAA/AST as the only federal agency with authority to regulate commercial human spaceflight Suborbital human and scientific spaceflight policy specifically addressed, as well as encouraging U.S. Government to be customers Ensuring safe commercial access to suborbital space and beyond Providing capacity support to allow affordable commercial launch services Technology development and improvement of in-space propulsion, range infrastructure, ground systems and associated space flight support systems

10. Risk Management Working Group Observations COMSTAC affirms the critically important role of FAA/AST as the only federal agency with authority to regulate commercial human spaceflight