[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] PRIVATE SECTOR LUNAR EXPLORATION ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON SPACE COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION __________ SEPTEMBER 7, 2017 __________ Serial No. 115-27 __________ Printed for the use of the Committee on Science, Space, and Technology [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://science.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 27-174PDF WASHINGTON : 2017 ---------------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected]. COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HON. LAMAR S. SMITH, Texas, Chair FRANK D. LUCAS, Oklahoma EDDIE BERNICE JOHNSON, Texas DANA ROHRABACHER, California ZOE LOFGREN, California MO BROOKS, Alabama DANIEL LIPINSKI, Illinois RANDY HULTGREN, Illinois SUZANNE BONAMICI, Oregon BILL POSEY, Florida ALAN GRAYSON, Florida THOMAS MASSIE, Kentucky AMI BERA, California JIM BRIDENSTINE, Oklahoma ELIZABETH H. ESTY, Connecticut RANDY K. WEBER, Texas MARC A. VEASEY, Texas STEPHEN KNIGHT, California DONALD S. BEYER, JR., Virginia BRIAN BABIN, Texas JACKY ROSEN, Nevada BARBARA COMSTOCK, Virginia JERRY MCNERNEY, California BARRY LOUDERMILK, Georgia ED PERLMUTTER, Colorado RALPH LEE ABRAHAM, Louisiana PAUL TONKO, New York DRAIN LaHOOD, Illinois BILL FOSTER, Illinois DANIEL WEBSTER, Florida MARK TAKANO, California JIM BANKS, Indiana COLLEEN HANABUSA, Hawaii ANDY BIGGS, Arizona CHARLIE CRIST, Florida ROGER W. MARSHALL, Kansas NEAL P. DUNN, Florida CLAY HIGGINS, Louisiana RALPH NORMAN, South Carolina ------ Subcommittee on Space HON. BRIAN BABIN, Texas, Chair DANA ROHRABACHER, California AMI BERA, California, Ranking FRANK D. LUCAS, Oklahoma Member MO BROOKS, Alabama ZOE LOFGREN, California BILL POSEY, Florida DONALD S. BEYER, JR., Virginia JIM BRIDENSTINE, Oklahoma MARC A. VEASEY, Texas STEPHEN KNIGHT, California DANIEL LIPINSKI, Illinois BARBARA COMSTOCK, Virginia ED PERLMUTTER, Colorado RALPH LEE ABRAHAM, Louisiana CHARLIE CRIST, Florida DANIEL WEBSTER, Florida BILL FOSTER, Illinois JIM BANKS, Indiana EDDIE BERNICE JOHNSON, Texas ANDY BIGGS, Arizona NEAL P. DUNN, Florida CLAY HIGGINS, Louisiana LAMAR S. SMITH, Texas C O N T E N T S September 7, 2017 Page Witness List..................................................... 2 Hearing Charter.................................................. 3 Opening Statements Statement by Representative Brian Babin, Chairman, Subcommittee on Space, Committee on Science, Space, and Technology, U.S. House of Representatives....................................... 4 Written Statement............................................ 6 Statement by Representative Ami Bera, Ranking Member, Subcommittee on Space, Committee on Science, Space, and Technology, U.S. House of Representatives...................... 8 Written Statement............................................ 10 Statement by Representative Eddie Bernice Johnson, Ranking Member, Committee on Science, Space, and Technology, U.S. House of Representatives............................................. 12 Written Statement............................................ 13 Witnesses: Mr. Jason Crusan, Director, Advanced Exploration Systems, NASA Oral Statement............................................... 14 Written Statement............................................ 17 Mr. Bob Richards, Founder and CEO, Moon Express, Inc. Oral Statement............................................... 23 Written Statement............................................ 25 Mr. John Thornton, Chief Executive Officer, Astrobotic Technology, Inc. Oral Statement............................................... 35 Written Statement............................................ 37 Mr. Bretton Alexander, Director of Business Development and Strategy, Blue Origin Oral Statement............................................... 46 Written Statement............................................ 48 Dr. George Sowers, Professor, Space Resources, Colorado School of Mines Oral Statement............................................... 53 Written Statement............................................ 55 Discussion....................................................... 63 Appendix I: Answers to Post-Hearing Questions Mr. Jason Crusan, Director, Advanced Exploration Systems, NASA... 80 Mr. Bob Richards, Founder and CEO, Moon Express, Inc............. 87 Mr. John Thornton, Chief Executive Officer, Astrobotic Technology, Inc................................................ 92 PRIVATE SECTOR LUNAR EXPLORATION ---------- Thursday, September 7, 2017 House of Representatives, Subcommittee on Space Committee on Science, Space, and Technology, Washington, D.C. The Subcommittee met, pursuant to call, at 10:05 a.m., in Room 2318 of the Rayburn House Office Building, Hon. Brian Babin [Chairman of the Subcommittee] presiding. [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. The Subcommittee on Space will now come to order. Without objection, the Chair is authorized to declare recesses of the Subcommittee at any time. Welcome to today's hearing titled ``Private Sector Lunar Exploration.'' I recognize myself for five minutes for an opening statement. Exploration, particularly space exploration, is inherently and inescapably a matter of vital national strategic importance, both today and in years and decades to come. Because space exploration is so strongly linked to a wide range of current and future national interests, it is easy for us, as lawmakers, to fall into the habit of thinking of space as a strictly government operation and effort. But not only can space involve the private sector, it must involve the private sector. Fully incorporating newly explored domains into our sphere of economic influence will ensure U.S. leadership in the future. Moreover, space is so vast and immense that it is foolish to propose that we can meaningfully plumb its depths without resources, talent, and drive that are so abundant in America's private sector. There's no guarantee that the private sector will be successful. To the contrary, there will certainly be failures but the failures and successes should be determined by the free market. For this same reason, the private sector should not be artificially subsidized by the government. We should not leave our nation's space exploration future purely to the whims of market uncertainties, and we should not bet our nation's future in space on any one company. As we've seen so often in space, companies, and even entire sectors, come and they go. Our leadership in space is far too important to subject it to that kind of risk and uncertainty. So while we will begin our discussion here today with NASA's testimony to provide context and help frame our deliberations, our intent is to understand not just how government-led exploration of space is proceeding, but where the private sector will take us and how these public and private actors will work together for their mutual benefit. This hearing gives us an opportunity to understand what has worked well in the past, as well as what we could do better in the future. NASA has a vast array of tools at its disposal: traditional contracts, grants, cooperative research and development agreements, various funded and unfunded Space Act Agreements, and anchor tenancy agreements. All of these tools offer unique advantages and risks. Careful consideration should be given to which tool is used in order to ensure that the taxpayer is protected, and that the government does not corrupt the market. Ultimately, I hope that we can better understand if, how, and when the Moon can be integrated into human economic activity. The Moon is the closest source of raw materials to Earth. In particular, the lunar poles may contain vast quantities of water, an invaluable resource for space exploration. Water is not only necessary to support the life of astronauts and crew; it can also be broken down into hydrogen and oxygen, which are excellent propellants. Industrial, financial, and technical giants like Carnegie, Rockefeller, JP Morgan, and Edison dominated the economic and industrial landscape of the late 19th century America. Advances in information technology in the late 20th century brought us Microsoft, Google, Apple, Facebook, and Amazon. Will space be the next sector to lead economic growth? I don't know. If space becomes a home and workplace for humanity, if space can become part of our sphere of economic influence, then someday, perhaps in the far future, we will see those industries take root and grow. But we cannot compel such an ambitious outcome, but by careful and thoughtful consideration we can, hopefully and humbly, enable it. At the very least we should not stifle it. I hope that today's discussion will help inform all of our thinking about the future of private sector exploration of space. [The prepared statement of Chairman Babin follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. And now at I'd like to turn to the gentlelady from--the gentleman from California, Dr. Bera. Mr. Bera. Thank you, Mr. Chairman. And actually before I begin, I want to express my full support and sympathies to both you, your constituents in your district, and the employees at the NASA Johnson Space Center, and all those that were affected by Hurricane Harvey as well as those being affected by Hurricane Irma. Our thoughts and prayers go out to them, and they have our full support and you have our full support through the long recovery. Chairman Babin. Thank you. Mr. Bera. It also does emphasize the important work of this Subcommittee as well as the Full Committee in better understanding Earth sciences, better understanding weather changes, and making sure that we do have the best forecasting equipment and satellites that are out there. With that, I want to welcome the distinguished panel today, and thank you for calling this important hearing on lunar exploration plans and proposals. Forty-eight years ago, Neil Armstrong and Buzz Aldrin touched down on the Moon, imprinting mankind's first footsteps on the Moon's surface. When astronauts Eugene Cernan and Harrison Schmitt lifted off the lunar surface on December 14, 1972, who would have imagined that they would be the last humans to visit the Moon for nearly a half-century and counting? Now, we don't know exactly when humans will return to the lunar surface, but what is clear is that we're at the doorstep of a renaissance in Moon exploration. Soon, the Moon may entertain many visitors in the form of robotic spacecraft and rovers from many countries, and some, as we will hear today, will be owned and operated by commercial entities. Innovative technologies that will enable testing and demonstrations may one day lead to routine cargo and perhaps even routine human flights to and from the Moon and help promote increased economic activity in space. However, let's also not forget that the Moon remains an important scientific research center and the importance of finding that public-private nexus. A 2007 National Academies report identified several scientific priorities for Moon exploration including the exploration of the lunar poles. According to the report, the South Pole Aitken Basin, in particular, is a priority for further scientific exploration because ``it is the oldest and deepest observed impact structure on the Moon and the largest in the Solar System.'' And, you know, that exploration, as the Chairman touched on, you know, if in fact we confirm the presence of lunar ice there, can have huge impact, and certainly as we think about the Moon as a potential secondary launch site as we go and further explore into deep space, it's incredible important. But also as we look at this pristine laboratory, we want to make sure that, you know, we are balancing the research needs--if I think about Star Trek and the prime directive--and that we are not actually introducing other organisms or anything else, that may actually disrupt our science. So, I look forward to hearing about the commercial entities, the potential of that nexus of the commercial sector, the scientific community, NASA all working together, and I think this is an incredibly important time for both lunar exploration but also for deep space exploration, and the importance of this Committee at this particular time I think is incredibly important. A few questions that I hope to hear being addressed in today's hearing are, what are the market drivers for commercial efforts to explore the Moon? Who are the projected customers for planned private lunar exploration services and what services will be provided to those customers? How is NASA currently collaborating with the private sector on exploration of the Moon and are the current models of partnership working well? And are there opportunities for the private sector to collaborate with the science community on their exploration plans? I'm looking forward to hearing, and I think it'll be very interesting. With that, Mr. Chairman, I will yield back [The prepared statement of Mr. Bera follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. Thank you. And now I would like to recognize the Ranking Member of the Full Committee for a statement, Ms. Johnson. Ms. Johnson. Thank you very much, Mr. Chairman. Good morning, and welcome to our witnesses. This hearing on private sector lunar exploration, I think is important. While not a substitute for our governmental space programs, there are many innovative ideas for potential non-governmental roles in space emerging. Private sector innovation can capture the spirit of opportunity and engage and inspire the development of scientific and technical talent. It has the capacity to support commercial interests as well as governmental space activities, where appropriate. This morning, we will hear about one example of potential commercial space activities--private sector lunar exploration. To date, only governmental entities have explored the Moon, but the private sector is getting interested in the Moon too. It's no surprise that the Moon and its vicinity are of interest to a growing number of private sector entities and other nations. The Moon provides a potential testing ground for human exploration systems, operations, and activities. It harbors resources that could potentially be used to support lunar surface operations or exploration beyond the Moon, and some would argue that it even offers a destination for potential space tourists. I look forward to hearing from our witnesses about their plans for private sector lunar activities, NASA's current role in those efforts, and about both the opportunities and challenges that lie ahead for the private sector in carrying out their plans. In addition, while not the focus of this hearing, it is important to note that the Moon has long been a body of scientific study, through U.S.-led and international lunar science missions, including from samples collected and returned on the Apollo missions. To that end Mr. Chairman, as we discuss private sector plans for lunar exploration, it is important that we understand the potential impacts of such activities on scientific priorities related to the Moon. Before I close, I want to extend my thoughts and prayers to those in Houston and the surrounding areas and, especially, Mr. Chairman, to you for being a stalwart in an area that was devastated with the storm. I want to include the NASA employees, contractors, and partners of the Johnson Space Center. Their steadfast commitment to ensuring the safety of the ISS crew and continuation of the James Webb testing during Harvey's devastating rains exemplifies the professionalism and commitment they give our country's space program every day, even during times of extreme duress. I thank you, and I yield back. [The prepared statement of Ms. Johnson follows:] [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. And we sure thank you for your comments there. Now let me introduce our witnesses. Our first witness today is Mr. Jason Crusan, Director of Advanced Exploration Systems at NASA. He holds bachelor's degrees in electrical engineering and physics, a master's degree in computer information systems, and is currently a candidate for a doctorate in engineering management at George Washington University. Thank you for being here today. Our second witness today is Mr. Bob Richards, Founder and CEO of Moon Express. He also chairs the Space Commerce Committee of the Commercial Spaceflight Federation and serves on the Board of the Space Foundation. Mr. Richards studied aerospace and industrial engineering at Ryerson University, physics and astronomy at the University of Toronto, and space science at Cornell University. Thank you for being here. Our third witness today is Mr. John Thornton, CEO of Astrobotic Technology. Mr. Thornton led development of Astrobotic spacecraft including Red Rover, Polaris, and the Artemis lander, and the Griffin lander. He holds both a bachelor's of science and a master's of science degree in mechanical engineering from Carnegie Mellon University. Thank you for being here. And then our fourth witness today is Mr. Bretton Alexander, Director of Business Development and Strategy at Blue Origin. He has served as a Senior Policy Analyst for Space Issues in the White House Office of Science and Technology Policy under both Presidents Bush and Clinton as well as President of the Commercial Spaceflight Federation. Mr. Alexander holds both a master's degree and a bachelor's of science degree in aerospace engineering from the University of Virginia. Good to see you this morning, too. Our fifth witness today is Dr. George Sowers, Professor of Space Resources at Colorado School of Mines. Mr. Perlmutter. Colorado. You heard that. Chairman Babin. Thank you, Ed, appreciate that. I think they heard that, though. Dr. Sowers has also worked for Martin Marietta, Lockheed Martin, and the United Launch Alliance. Dr. Sowers holds a bachelor's of science in physics from Georgia Tech as well as a Ph.D. in physics from the University of Colorado. He is also a Fellow of the American Institute of Aeronautics and Astronautics. So I now recognize Mr. Crusan for five minutes to present his testimony. TESTIMONY OF MR. JASON CRUSAN, DIRECTOR, ADVANCED EXPLORATION SYSTEMS, NASA Mr. Crusan. Mr. Chairman and Members of the Subcommittee, thank you for the opportunity to appear today to discuss NASA's support of private sector exploration of the Moon. NASA is working to foster commercial use of space and engagement with the broader domestic and international space community. This effort will build on the progress NASA commercial partnerships have been using to develop spacecraft and rockets capable of delivering cargo and soon astronauts to low-Earth orbit. Its capabilities could also enable new science and exploration missions of interest to the larger scientific and academic communities and can fit well with concepts being discussed for human missions in cislunar space. In turn, they have the potential to provide important enabling competencies as NASA expands human presence into deep space. NASA lunar science has helped map the Moon in incredible detail, determine the presence of water ice, and understand the Earth's satellite's irregular gravity field. NASA lunar missions are increasing global knowledge and understanding of the origins of our solar system, informing future exploration efforts of the Moon and other planetary bodies, and bringing the agency closer to having infrastructure and technologies needed to explore future destinations like Mars. As part of the agency's overall strategy to conduct deep space exploration, NASA has been supporting the development of commercial lunar exploration. In 2014, NASA introduced an initiative called Lunar CATALYST, and the purpose of this initiative was to enable development of U.S. private sector robotic lunar landers that can deliver payloads to the lunar surface using U.S. commercial launch capabilities. Through CATALYST, NASA has provided partners with in-kind contributions including technical expertise, access to test facilities, software and loaning of equipment, and the initial flights of these commercial lunar landers may begin as early as 2018. As a result, one or more of our partners would be able to market lunar payload delivery services for small instruments and technology demonstrations. Future commercial lunar transportation capabilities could also support science and exploration objectives such as sample return, geophysical network deployment, resource utilization, and technology advancements. The agency is currently assessing possible robotic mission concepts, acquisition approaches, and associated payloads for a potential series of lunar cargo missions to the surface of the Moon starting as early as 2018. In support of these objectives, NASA issued a Request for Information seeking ideas from industry for NASA participation in existing or future commercial missions to the Moon. The agency is interested in assessing the availability of commercial delivery services from Earth to the lunar surface as early as next fiscal year. NASA continues to pursue other lunar exploration efforts as well. NASA's Lunar Reconnaissance Orbiter, or LRO, has produced the highest quality global topographic map of any planetary body and continues to share its data openly with the public. The Korea Pathfinder Lunar Orbiter mission, South Korea's first mission in exploration, will include NASA's ShadowCam, a highly sensitive optical camera that will peer into the regions that may hold volatiles, including water. NASA plans to include four Lunar Research CubeSats as part of the 13 CubeSats that are launching on Exploration Mission 1, the first launch of the Space Launch System. And lastly, NASA has been studying a potential Resource Prospector surface mission that would take the next step in understanding in the harvesting of resources and regolith, specifically volatiles, particularly in the lunar polar regions. So NASA is committed to expanding partnerships with the U.S. government agencies as well as academic, industrial and entrepreneurial and international communities. NASA's collaborative efforts for fostering innovation in a growing space industry are continuing to transform capabilities and accelerate technologies to achieve national strategic goals. Mr. Chairman, I'd be happy to respond to any questions you or the other Members of the Subcommittee have. Thank you. [The prepared statement of Mr. Crusan follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. Thank you very much, Mr. Crusan. I now recognize Mr. Richards for five minutes to present his testimony. TESTIMONY OF MR. BOB RICHARDS, FOUNDER AND CEO, MOON EXPRESS, INC. Mr. Richards. Thank you, Chairman Babin, Ranking Member Bera and Members of the Subcommittee. It is an honor to be invited to speak with you today about the efforts of U.S. commercial space industry in pioneering new business models for lunar exploration and development. Only a few decades ago, Earth orbit was an economic frontier and the singular domain of government space agencies today. The private sector satellites generated billions of dollars of commerce annually in a mature, well-established economic sphere that impacts our everyday lives and has immeasurably improved life on Earth. Now commerce looks beyond Earth orbit to a lunar frontier, which has also been the realm of governments but over the last decade, a combination of exponential technology and private sector investment has brought the Moon within reach of the commercial sector. Today, I address you as Founder and CEO of Moon Express, a privately funded commercial space company created to seek and unlock the resources of the Moon through a progressive series of commercial robotic missions starting with our maiden voyage scheduled to launch next year. I founded Moon Express with dotcom pioneers Naveen Jain and Barney Pell in 2010 as an enduring business, which starts with the creation of new space technologies and low-cost missions designed to capture and generate new markets for robotic lunar exploration. We are a Silicon Valley-born and -backed enterprise with investors ranging from billionaires to venture funds to celebrities. We began our life at the NASA Ames Research Park in Mountain View, California, and in 2015 we relocated the company to Cape Canaveral on Florida's Space Coast where we have licensed the historic Launch Complexes 17 and 18 from the U.S. Air Force and are currently refurbishing these facilities for our spacecraft, engineering tests, and our mission control. Our vision is to open up the lunar frontier for everyone with turnkey payload data and mission surfaces to the Moon for a wide range of customers globally including governments, NGOs, commercial enterprises, universities, and consumers. To do so, we have developed a flexible, scalable robotic explorer system that can reach the Moon and other destinations in the solar system from Earth orbit. After years of quiet development, we unveiled our robotic exploration architecture on July 12th just down the hall from this hearing room ranging from our MX-1E scout-class micro lander to our frontier-class MX-9 supporting lunar sample return. We have contracted for up to five launches from Rocket Lab USA aboard their electron rocket, which achieved a remarkable level of success during its maiden flight last May, and we expect to become operational later this year. Our first lunar scout mission in 2018 will utilize the electron together with our MX-1E explorer to deliver a diverse manifest of scientific and commercial payloads to the lunar surface. This will be followed by expanded capabilities and ongoing missions. Our manifest is fully booked for our maiden mission, and we will be offering payload accommodations on our future ongoing missions planned at the rate of about one per year, but we are also prepared to scale up our systems and increase our flight rate to meet rising market demand and opportunity. We have a big vision but it wouldn't be possible without the help we received from NASA. Moon Express has been honored to be partnered with NASA since the inception of our company through reimbursable Space Act agreements with both NASA Ames and Marshall Spaceflight Center. We were able to invest in and make use of NASA lunar lander test vehicles that allowed us to advance our own spacecraft control software. In 2014, we were selected as one of three industry partners with NASA for the Lunar CATALYST program established to spur commercial cargo transportation capabilities to the surface of the Moon. Supported by Lunar CATALYST and the Kennedy Space Center, we conducted test flights of our own lunar lander test vehicle at the shuttle landing facility, beginning a long-term collaboration with KFC, and that continues today. Thanks to our partnership with NASA, we're well on our way to building our maiden launch mission next year, which is in various stages of fabrication, assembly and test. In the big picture, it's been 45 years since the United States left the surface of the Moon to the legacy of Apollo and a generation past. Moon Express is working to reopen the American frontier and the Moon and redefine what is possible for new generations. The American flag is returning to the surface of the Moon next year, not because of a government program but because of private sector investments into low-cost rockets and smart robotic explorers that are collapsing the cost of lunar access. Together, we will begin a new democratized program to make the Moon accessible to entrepreneurs. We are at the cusp of a glorious adventure. We aspire to the stars. Mars beckons as a second home for humanity, and the Moon is our gateway. Thank you for the time and the opportunity to present this testimony. [The prepared statement of Mr. Richards follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. Thank you, Mr. Richards. I now recognize Mr. Thornton for five minutes to present your testimony. TESTIMONY OF MR. JOHN THORNTON, CHIEF EXECUTIVE OFFICER, ASTROBOTIC TECHNOLOGY, INC. Mr. Thornton. Chairman Babin, Ranking Member Bera, and Members of the Subcommittee, thank you for the opportunity to discuss our nation's future on the Moon. Incredibly, America has not returned to the lunar surface since the Apollo program ended in 1972. This has put our nation at a disadvantage as other nations like China have landed increasingly ambitious robotic missions on the surface of the Moon. As we approach the 50th anniversary of Apollo 11 landing, our nation has a unique opportunity to answer a growing global demand for a reliable, proven means to access the lunar surface. Some nations are beginning to fly with the Chinese but it's not too late. By supporting our nation's entrepreneurs, America can once again lead the world back to the Moon. Thankfully, with the strong technical support of NASA, especially through the leadership of Jason Crusan's AES Office, American industry is restoring access to the Moon with small robotic lunar landers. Founded in the Rust Belt city of Pittsburgh in 2007, Astrobotic is leading the way to reestablish American access to the Moon with small-scale cargo delivery. We have assembled a world-class team of partners including NASA, United Launch Alliance, Airbus, and DHL. Together, we are building the Peregrine lunar lander, a privately developed spacecraft capable of delivering up to 265 kilograms of cargo to the Moon. In August, I celebrated ten years of building Astrobotic and the lunar market. Today, I am proud to say that Astrobotic is leading the world in lunar sales and market development with 11 deals representing six nations and a lunar pipeline of over 115 deals worth more than $1.8 billion. Astrobotic is flying its first mission to the Moon in 2019, the 50th anniversary of the Apollo 11 landing. Peregrine is not a precursor or a demonstration. It is right-sized from the beginning to address the existing lunar market. At the historic price of $1.2 million per kilogram, Peregrine enables activities like resource development, scientific investigation, technology demonstration, and exploration. The future is bright but tenuous for sustainable commercial lunar cargo delivery. The government would be wise to leverage and augment existing international lunar payload demand rather than overwhelm it with an oversupply of large landers that have no sustaining commercial demand for the foreseeable future. Small landers like Peregrine stand ready to support upcoming NASA crewed exploration missions on SLS Orion to the deep space gateway by enabling telerobotic access to the surface. Small lander missions are our first step toward one day reestablishing human presence on the Moon and launching a cislunar off-world economy. Much of Astrobotic's market progress is owed to a proven technical track record and world-class partnerships. For instance, Airbus is providing engineering support and expertise from ESA programs. Throughout partnership with United Launch Alliance, we will launch as a secondary payload from Cape Canaveral on America's reliable Atlas V launch vehicle, continuing a proud history of successful lunar missions including LRO, LCROSS and GRAIL. NASA is providing access to their engineers and facilities through the highly successful Lunar CATALYST program, and we are encouraged by steps NASA has taken this year including issuing RFIs for small lunar payloads and lander services. With CATALYST insight into our service, Astrobotic believes now is the time for NASA to join our payload manifest. We appreciate the leadership of House CJS Appropriations Subcommittee Chairman Culberson, Ranking Member Serrano, and Members of the Committee in providing $30 million in the fiscal year 2018 appropriations bill for a small robotic lunar lander demonstration mission. We are hopeful the Senate will follow the House's lead, and this funding will be included in a final omnibus, which could allow NASA to send payloads to the Moon. We encourage this Committee to lend its full support for this program in the appropriations process this fall. As this Committee plans for the next NASA authorization, we urge you to authorize a frontier-class lander services program for small lunar landers within the launch services program similar to the Venture-class program. This would provide a contractual mechanism for NASA to easily purchase lunar payload services. Mr. Chairman, we are proud to be leading the Moon shot from America's Rust Belt. This is a special moment for our company, our industry, our region, and our nation. Small lander services like Astrobotic have a proven market with sales, world-class partners, and credible spacecraft. With support from Congress, we can ensure American lunar market leadership and NASA's return to the Moon. I look forward to any questions you may have. [The prepared statement of Mr. Thornton follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. Thank you very much, Mr. Thornton. I now recognize Mr. Alexander for five minutes to present his testimony. TESTIMONY OF MR. BRETTON ALEXANDER, DIRECTOR OF BUSINESS DEVELOPMENT AND STRATEGY, BLUE ORIGIN Mr. Alexander. Chairman Babin, Ranking Member Bera, and Members of the Subcommittee, thank you for the opportunity to speak before you today about private sector lunar exploration, a topic that we're very excited about at Blue Origin. Before I begin, I'd like to extend our thoughts and support to our friends at Johnson Space Center and the broader Texas community as they recover from Hurricane Harvey and to those at Kennedy and throughout Florida in the path of Hurricane Irma. Blue Origin was founded to bring about a future where millions of people are living and working in space. We are committed to building the next generation of space transportation and are prepared to bring significant private capital to partner with NASA for return to the lunar surface. It's time for America to return to the Moon, this time to stay. Enabling NASA and U.S. commercial activities on the Moon is a key step on the path to long-term exploration of the solar system. Imagine driving from DC. to Los Angeles nonstop. You'd have to carry with you all of your fuel, food, and other necessities with you, which would make for a difficult trip. The Moon provides the resources and proximity to enable human exploration of deep space destinations like Mars, making it the ideal proving ground and first step. For example, the lunar South Pole's Shackleton Crater contains critical resources for fuel and power generation while also offering a nearby proving ground for deep space exploration technologies. All of this potential has not gone unnoticed. Many commercial entities and nations have plans for an ambitious decade of lunar exploration. The United States should be the leader in this worthy endeavor. Blue Moon is a space transportation and lunar lander system that can cost-effectively deliver more than 10,000 pounds of cargo from Earth to the lunar surface. This equates to about five Mars Curiosity Rovers, or two Ford F-150 trucks. When you can cost-effectively and precisely soft land large amounts of cargo on the Moon, there are few limits on what you can do, everything from science rovers to resource discovery and utilization mission to surface habitats is made possible. Blue Moon is scalable, repeatable, and based on proven technologies. Optimized to fly on NASA's Space Launch System, Blue Moon also scales to fly on many different launch vehicles. Just pick the launch vehicle and go. Smaller payloads, such as NASA's Resource Prospector, can use an Atlas V rocket, while larger payloads can use Blue Origin's New Glenn launch vehicle or NASA's SLS. Blue Origin's proven technology provides a fast path to a U.S. lunar landing capability for medium to large payloads. Blue Origin's BE-3 is the first new liquid hydrogen-fueled rocket engine to be developed for production in over a decade. It has been proven during five launches and landings of our New Shepard vertical landing booster. The BE-3's efficiency, deep throttling and relight capabilities all translate into more useful payload mass landed on the Moon. Precision landing is also key, and Blue Origin has demonstrated this capability with the same New Shepard vehicle five times in less than a year. Both technologies reduce development time and risk. Blue Origin has made and continues to make significant investments in the foundational technologies needed for Blue Moon. As part of a public-private partnership with NASA, we are willing to invest further in developing this capability. We invite NASA to partner with Blue Origin using innovative contracting mechanisms that require private sector investment and cost-sharing. NASA's Commercial Cargo and NextSTEP programs represent successful models that require partners to bring money and technologies toward achieving shared goals. These partnerships allow the country to meet big objectives more rapidly, while also promoting economic development and U.S. strategic leadership in space. A NASA Reauthorization Act should include provisions that prioritize landing on the lunar surface in the near term. It should establish a regular cadence of cargo missions and include a strategy for the Moon as a stepping-stone for expanding human exploration in our solar system. We are on the verge of a new space age, one defined by multiple international competitors focused on getting to the lunar surface. This Congress has the opportunity to ensure America's continued leadership in space. The Moon should be the near-term focus of human spaceflight beyond LEO as a necessary step toward exploration of the solar system, and Blue Origin is willing to significantly invest in partnership with NASA to accelerate America's return to the Moon. Thank you, and I look forward to your questions. [The prepared statement of Mr. Alexander follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. Thank you, Mr. Alexander. I appreciate that. I now recognize Dr. Sowers for five minutes to present his testimony. TESTIMONY OF DR. GEORGE SOWERS, PROFESSOR, SPACE RESOURCES, COLORADO SCHOOL OF MINES Dr. Sowers. Mr. Chairman and Members of the Committee, thank you for the opportunity to appear today to discuss private sector lunar exploration. The subject of today's hearing is of great interest to me. It's part of a larger topic, one that is truly revolutionary, that of bringing the resources of space into the economic sphere of humankind. There have been two major economic revolutions in human history: the Agricultural Revolution of 10,000 years ago, which gave birth to human civilization, and the Industrial Revolution of 300 years ago, which gave rise to the tremendous increase in human well-being and prosperity we enjoy today. Space resources will be the third major economic revolution and will usher in an era of unprecedented prosperity and flourishing. Furthermore, the development of space resources will enable us to save the Earth as we unchain human progress from the constraints of Earth's ever-diminishing resources. Compared to Earth, the resources available in space are virtually infinite. Consider the power output of the Sun is 10 trillion times the power consumption of humans. Just one metallic asteroid 500 meters in diameter contains more platinum-group metals than have ever been mined. Finally, we now know that the solar system contains abundant quantities of water. If you have water, you have hydrogen and oxygen, which are the most efficient chemical propellants known. Water is the oil of space. We know these resources exist. Bringing them within the economic sphere of humankind requires the machinery of a robust space economy, and that means harnessing the power of the free market. Competition in the free market spurs innovation, leading to efficiency and growth. But the foundation of the free market is the consumer, the ordinary citizen, the taxpayer. The space economy must deliver value to consumers on Earth. Hence, the first place to begin is cislunar space. The goal then of private sector exploration of the Moon is economic development. Extraction and utilization of lunar resources will be cornerstone of that development. The Moon is rich in resources that will drive the cislunar economy but the resource that would be most valuable in the near term is water processed into propellant. It happens that water is abundant at the lunar poles, billions of metric tons per pole by some estimates. A year ago, while at United Launch Alliance, I became the first person to offer to buy propellant in space. I set up price for propellant bought either at the lunar surface at $500 a kilogram or in high-Earth orbit like the first Earth- Moon Lagrange Point at $1,000 per kilogram. At these prices, the cost of any activity beyond low-Earth orbit becomes dramatically reduced. For example, the cost to deliver mass to the surface of the Moon will be reduced by a factor of three. The cost of a Mars mission will be similarly reduced. So you can see that the water on the Moon is an immensely valuable resources. Strategically, we should view the poles of the Moon as the next Persian Gulf. I've described the cislunar economy as a free market but the operation of a free market requires government to establish a framework of rights, enforce contracts, and to provide security. These things are part of the machinery of a robust space economy and are essential to reduce business uncertainty and enable private sector investment. Beyond the minimal, there's much the government can do to stimulate the creation of the cislunar economy. First is to invest in the basic science to characterize the resources and develop the technologies to exploit them. One approach would be for NASA to establish a space resources institute, partnering with both academia and industry, domestic and international, to solve some of the basic problems common to all. Second is to participate in the cislunar marketplace. I set a price for propellant based on purely commercial considerations, but having NASA as an additional customer purchasing propellant for, say, a Mars mission would significantly improve the business case and attract more competitors, driving more innovation and lowering costs even further. That's the virtuous circle of the free market. Finally, NASA could invest through public-private partnerships in, for example, lunar water mining operations. This approach has proven successful with Commercial Crew and Cargo, and works well when the risks are too great for the private sector to take on by itself. In conclusion, humankind is on the cusp of a third major economic revolution that promises to bring unprecedented prosperity and well-being for all. The first step is the creation of the cislunar economy with important roles for both the private sector and government. Thank you again for inviting me to testify, and I look forward to your questions. [The prepared statement of Dr. Sowers follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Babin. Thank you, Dr. Sowers. I'd like to thank all the witnesses for your testimony. The Chair now recognizes himself for five minutes for questions. Mr. Crusan, how could NASA leverage private sector technologies, products and services on future exploration concepts such as the potential deep space gateway or the hypothetical deep space transport? What elements are better suited to partnerships, and what aspects are more appropriate for a government-owned and operated effort? Mr. Crusan. Mr. Chairman, we've been analyzing those exact cases that you've been asking about. We have our Next STEP initiative related to the gateway activities and how we construct and actually build that critical infrastructure, and we're trying to find that proper balance between government objectives and commercial objectives, both in the creation of that fundamental infrastructure but also in the utilization of that infrastructure as well. Lunar CATALYST now with the potential to buy lunar landed services, are another extension of that instead of building technologies that are only for our own use here at NASA but building technologies that are fundamental to the industry demand that they need as well. So through CATALYST, we've been sharing the vast wealth of knowledge we have at NASA, sharing it with the U.S. industry openly to allow them to make the maximum best use of that. In every one of these endeavors, we have to tread carefully, though, to find that proper balance, and that's why we've been so deliberate about what we've been doing. Chairman Babin. Well, then that'll lead into the next thing I'd like to ask you about, the potential pitfalls of leveraging private sector investments in space. Are there any areas about which we should be cautious when it comes to partnerships for lunar exploration? Mr. Crusan. Yes, so in a couple areas of alignment of incentives. So expanding the marketplace is a function of commercial demand and government use as well, so trying to get a proper balance and making sure that the government isn't expecting a higher level of performance that isn't commercially sustainable in the marketplace and getting that balance correct. So buying services at a rate which the industry is going to utilize for non-NASA use as well is one of the strong pitfalls that I would advise. Chairman Babin. Okay. And then to Mr. Richards, Thornton and Alexander, I'm pleased to see such a diversity of lunar landing capabilities being developed by your three companies, and it shows how the United States continues to lead the world in developing innovation and affordable solutions. Can each of our industry witnesses briefly explain what makes their lander unique and different from the others and so the Committee can better understand the differences and the capabilities between your services? We'll go with you, Mr. Richards, first. Mr. Richards. Thank you, Mr. Chairman. So Moon Express's approach has been to establish a family of vehicles that begins small and can grow with partnership with NASA, not presuming a dependency, but looking at the long tail of the market where we can do for lunar access what CubeSats did for access to low- Earth orbit. We believe there's a big market here. So we're starting with a micro lander that can go in a very low-cost launch vehicle. When we started Moon Express, we were looking at missions that might cost $100 million or more to get to the Moon. With a combination of the current technology and the low- cost vehicles that are coming on the market, we can do initial precursor missions for under $10 million of our cost. But those can scale up, and our modularity is key. So like rockets and especially being the manufacturer take advantage of modular systems and stages don't get changed over time, our basic propulsion model scales up into larger and larger lander systems that can reach the Moon and deliver materials back. Chairman Babin. Thank you. Mr. Thornton? Mr. Thornton. Thank you. So we are developing the Peregrine lunar lander. From the get-go, we are market-focused, so we say okay, what's the market out there for payloads, what sizes is necessary, and then we design a lander and the scale that's appropriate for that. So what we have determined is 265 kilograms of capacity serves the majority of the existing market for payload delivery. Our first mission to the Moon flies that commercially viable craft right from the get-go. It's a single-set secondary vehicle that flies on a United Launch Alliance launch vehicle to low-Earth orbit and then we fly the rest of the way to the Moon. Once on the surface of the Moon, we become the local utility so we provide power, we provide communications for payloads that come with us. Some payloads can stay attached to the lander. Some payloads can deploy and drive across the surface and use our WiFi on the surface to talk back to Earth. So the lander itself is designed to be a simple, robust system. It's single stage. There's no separations, very few mechanisms to actually move on the spacecraft, so we're all about simple reliability for robust delivery, and what we have found from our customers is that customers are very sensitive to any changes, substantial changes in spacecraft. The customers around the world tell us that if you change your spacecraft configuration mission to mission that they're going to think of that next launch as a demonstration launch and they want to make sure that it's a proven capability. So that's why we have a single spacecraft designed from the get-go to address the commercial market, and we believe that it's affordable enough to get that first flight demonstrated and to capture a large portion of the international market. Chairman Babin. Thank you. Now we'll go to Mr. Alexander. Mr. Alexander. Thank you, Mr. Chairman. Blue Moon is designed as a large lander so it is designed to take more than 10,000 pounds to the lunar surface when launched on an SLS, a NASA SLS rocket. So that vehicle, that same spacecraft lunar lander can be flown on a variety of different launch vehicles ranging from 1,000 pounds of payload delivered to the surface all the way up to more than 10,000 pounds. So a single design does the in-space transfer as well as the landing down to the surface and carries with it that large payload capability. So it is designed to enable other missions. It's designed to enable NASA to preposition logistics for future human missions, to provide resource utilization missions, delivery and access to the surface, or to provide landers like Resource Prospector, a way of actually getting to the surface. It's repeatable, scalable, and based on proven technologies. Chairman Babin. Okay. Thank you very much. I appreciate the witnesses. Now I'd like to recognize the Ranking Member from California, Mr. Bera. Mr. Bera. Thank you, Mr. Chairman. So if I think about when I was a kid, probably six or seven years ago, and thinking about what I thought was the coolest Apollo mission when they sent up the lunar rover, the Moon buggy, and you think about how space was done then. It was NASA doing the launch vehicle, NASA doing the landing vehicle, in some ways NASA then doing the research vehicle, the Moon buggy. I want to make sure I'm thinking about this correctly. Let's-- and maybe this is a question for Mr. Crusan. Let's say NASA is thinking about something like the Moon buggy or a research vehicle. They can now in this new world of space travel say okay, let's do some competitive bidding, see if Moon Express is the right landing vehicle or, you know, Astrobotic or Blue Moon is the landing vehicle we want to use. They can also then say okay, what launch vehicle do we want to use? Do we want to do an Aerojet Rocketdyne rocket or a Blue Origin rocket or a SpaceX rocket, or ULA rocket? And so we're creating this competitive marketplace where NASA in some ways could be the customer. Am I thinking about that correctly? Mr. Crusan. Absolutely. So the Apollo reference is an interesting one in that during the development of Apollo and many times we were the entire--we were the user of the entire industrial base, and in fact, a lot of the industrial base didn't even exist at the time, and you think about that difference in that we had to pay the entire percentage of all the non-reoccurring costs in order to get a capability into an existence, and we were the only user of that at the end of the day so we also had to sustain it. What you now see are merging space economy activities, both launch vehicles and communication satellites and Earth observation work that's going on now where now we can be a leveraged buyer of those capabilities, especially in low-Earth orbit and geosynchronous- type environments that we have, and then we can then stretch those commercial capabilities to start applying towards exploration initiatives, and it comes down that there's--we have a mixed environment of traditional development with the high-risk, high-reliability needs that we have, and with commercial services and commercial technologies that we can apply into that environment that we need to execute the national mission. So at the same time, then we don't have to sustain the entire industrial base anymore either, and there's a very productive space sector that's growing. Mr. Bera. And to the folks in the commercial sector, maybe Mr. Richards, Mr. Thornton, Mr. Alexander, are we looking at this--we're creating a competitive economy here where it could be NASA as a customer but it could also be academia or others as a customer. Is that how you're looking at your business model? Mr. Richards. For Moon Express--thank you--we certainly are. We love the idea of NASA as a customer. They've certainly been a great technology partner. We're building on the shoulders of giants and working shoulder to shoulder with giants, so that's great, but we're looking at a global marketplace, and bringing the cost accessible to where university endorsements, I mean, we've got kids sending CubeSats into low-Earth orbit. We see the long tail of the market a great leverage for us to begin our lunar business and be able to scale up on the way, and I'm sure my friends will agree with me that competitiveness rocks, and we're very much in favor of it. Mr. Bera. Same thing--same thoughts for Mr. Thornton and Mr. Alexander? Mr. Thornton. Yes, I'd agree with the sentiments. We think of the market for lunar services as global. We've identified 115 payloads worldwide that want to fly to the surface of the Moon, and that's a mix of government, international governments, domestic, small and big. We think of the smaller space agencies as the non-vertical space agencies. They need a little help because they don't have their own spacecraft, they don't have their own launch vehicles. We can enable that. One of our customers is the Mexican space agency, a perfect example how we are enabling their access to the surface of the Moon, and then we also see a mix of commercial interests as well. Mr. Bera. And same thing with Blue Origin? Mr. Alexander. Yeah, absolutely. I think there's a large market out there of international, government and commercial activities, but I do also think that NASA should be leading this effort. The United States should be leading the world in returning to the Moon in terms of utilizing the Moon's resources and so there's a large role for NASA to play in that. Mr. Bera. Great. Excellent. Dr. Sowers, in your opening testimony you raised some interesting questions. Obviously there's a value of that water on the Moon and that ice on the Moon, and I think, you know, it raises questions. Is this going to be the Wild West? Whoever gets to that water first, do they own that water? I mean, we're talking about another planetary body. So, who owns that water? What country can claim that water, or is it our entire planet Earth? And then I would imagine there's some urgency that this body ought to be thinking about those questions. You know, certainly how do you create the framework that addresses and creates some certainty for folks that are going to go out there and explore, creates that market but then also doesn't stifle innovation. And I'd just be curious as you're thinking through those questions, what things we ought to be thinking about as a body. Dr. Sowers. That's a very important question. You know, I view the space economy as a free market but the free market has to have constraints and controls. There also has to be a system of rights. So you raise the question, who owns it. You know, there needs to be the establishment of a framework of, if you will, property rights for space so that if a company invests in, you know, developing a resources that they can return--reap a return on that investment. You know, those are important. Enforcement of contracts, you know, how do we make sure that, you know, if some company buys something from a country, you know, that those contracts can be enforced. Then you have also the issue of physical security. You know, if there's wealth in space, eventually there's going to be pirates in space, and so kind of have to have a way of ensuring the security of the enterprises that take place out there. Mr. Bera. Great. Thank you. Mr. Chairman, it looks like we might have some work ahead of us. Chairman Babin. Absolutely. We'll have another Texas oil boom out there but it'll be water this time. Thank you very much. I now recognize the gentleman from Florida, Mr. Posey, who is trying to get out of here to get his district ready. Mr. Posey. Thank you very much, Mr. Chairman. Chairman Babin. Yes, sir. Mr. Posey. Mr. Richards, Thornton and Alexander, you mentioned that you got help and encouragement from NASA. I wonder in 30 seconds or less each if you can briefly tell me what kind of assistance you got from NASA. Mr. Richards. We've been partnering with NASA since the beginning with technology development so we've been given access. Sometimes we--most of the time we have to pay for that access but more recently with Lunar CATALYST, based on a mutual exchange, access to technology, test facilities, expertise, software, things that have displaced otherwise capital costs that we would've had to use investment money for. Mr. Posey. Okay. Thank you. Mr. Thornton. NASA has been a great partner of Astrobotic for a very long time. Most notably, the CATALYST program has been fantastic for us. It's taking NASA's best spacecraft engineers and landing engineers and fusing together with our technology to create a great vehicle. We just had our preliminary design review. We had 20 NASA people in the room including another dozen people on the phone looking over our whole system and helping us out. It's a first time for us so it's great to have the best in the business part of the mission. Mr. Posey. Thank you. Mr. Alexander. Blue Origin does not currently have a partnership with NASA on lunar lander activities. However, we do have a long history of cooperating with NASA on propulsion and other technologies. We've worked very well with NASA, and we appreciate their technical expertise and look forward to a partnership with NASA on the Blue Moon lunar lander. Mr. Posey. Okay. Mr. Crusan, I appreciate that NASA is trying to privatize what it can here and keep a long-term, I hope, focus on Mars. We've kind of helped incubate, move along, assist and encourage these companies. Have we made any agreements with them yet? I mean, how are we going to utilize them? Mr. Crusan. Yes. To date, we've done a no-exchange-of-funds Space Act Agreement where we haven't exchanged any funds for that but just providing, as we said, the support services that you heard from the partners here, and what we are now looking at doing is actually buying landed delivery services in the next fiscal year here of actually buying the first ability to land small payloads, and that's in our plans and our budget submit that we did this year. Mr. Posey. Okay. And tell me a little bit more about those. Mr. Crusan. Yeah, so we're talking initially about small landed services so small payloads of everything from scientific context to instruments to do single-point measurement related to volatiles to small technology demonstrations. This is a sign of our confidence of--growing confidence in the commercial industry, and managing a risk without getting too large or too costly payloads for us on the first maiden flights. So it's that balanced risk approach of us giving confidence in them but also not risking large endeavors at this point at NASA. So it's that balancing act that we're doing with them as we've done with Commercial Cargo and such when were in the development phases for those. Mr. Posey. Okay. Have you signed any contracts yet? Mr. Crusan. No, we've not. The RFI was the first step towards that. Mr. Posey. Okay. And when do you anticipate we would be doing contractual agreements? Mr. Crusan. We're preparing for the solicitation as we speak, basically was informed by the Request for Information that was done only a couple months ago. Mr. Posey. Okay. That's good. Thank you, Mr. Chairman. I yield back. Chairman Babin. Yes, sir. Thank you. Now I'd like to recognize the Ranking Member of the full Committee from Texas, the gentlewoman, Ms. Johnson. Ms. Johnson. Thank you very much. Let me express my appreciation for your interest, motivation and enthusiasm for what you are doing, and hope that it'll inspire the next generation of thinkers for the future. I want to ask you who you anticipate or do you have any ideas of who your customers will be from the private sector service for vacationing or whatever? How do you anticipate seeking them? Mr. Richards. So that's--thank you for that question. We already have customers so we've been marketing for a number of years now. An example is, we'll be delivering a lunar telescope for a private customer starting with a precursor, then a large system to the south pole of the Moon in 2019, and this is a nice nexus of science, of commerce, of private investment capabilities with a global scientific foundation, but led by a U.S. entrepreneur. So that's one of the examples of how science and commerce can intertwine. Our maiden mission has a full manifest, and we're marketing into our future missions now. Ms. Johnson. How do you anticipate determining the cost for services? Mr. Thornton. So first for us, it starts with the customer. We have customers the world over that are interested in flying, and I think that's a really notable important thing because we started ten years ago, and 7, eight years ago, there were no customers. It was too new. People thought it was a little crazy, frankly, but all good ideas start as crazy ideas and then they become reality. So we have 115 customers interested, everything from space agencies to commercial organizations, even down to universities and people that are just looking to inspire folks. We have a time capsule from Japan that is collecting the dreams of children from Asia, and they have more than 100,000 kids signed up sending their dreams. So we have all sorts, shapes and sizes of payloads attached. In terms of the pricing and how to address that, it's about what can cover our costs fundamentally. The majority of our cost is the launch cost, so as the costs of the launch vehicles come down, that will drive our prices down as well. Part of the reason that we build the same spacecraft again and again is we're looking to get that cost efficiency improved even more, but so far our price at $1.2 million per kilogram is accepted by the market and we already have numerous deals at that price point. Ms. Johnson. That sounds good. You know before now, there's been lots of thought of attempting to retrieve or save artifacts from the Moon. Have you considered retrieving any of the artifacts or have you given that any thought? Mr. Thornton. So we haven't started looking at retrieving artifacts. We think of what's on the Moon is memorials, permanent memorials, and one day, museums and potentially even national parks to go visit on the service of the Moon. Each one of our missions that landed a man on the Moon and all the precursors that led up to it, that's a really important part of history. So we intend to certainly have a keep-out zone and make sure that we don't land too close to it because it is possible to damage those if you land too close, but we think about it as a memorial for all time, and we think of our early landers the same way. We're essentially sending a snapshot of humanity for our first mission, and it's going to be a sampling of people all over the world. We have six nations flying with us on our first mission and many more that are interested in coming with us. So we're all about making the Moon accessible to the world, and I think those first landings will be monuments to just that. Ms. Johnson. You know, several years ago I was trying to find a vehicle to try to preserve some of the debris and artifacts, and the only place I could find was under the Parks Act. And so when I introduced the resolution, the news had it that I was attempting to establish a park on the Moon. I was a little embarrassed, but young people in high schools were very concerned and very enthusiastic about the possibility of establishing a park on the Moon, which I didn't have in mind at all. But what it reminded me of is how we do stimulate the young mind to think forward. So I encourage you to continue to think forward. Just don't send us the bill. Thank you. Chairman Babin. Yes, ma'am. Thank you. Now I'd like to recognize the gentleman from Florida, Dr. Dunn. Mr. Dunn. Thank you very much, Mr. Chairman. It's certainly exciting to have such an august panel and talking about a space economy that's genuinely prosperous. That's just so exciting to be in space. Let's start with a lightning round of questions real quick if I can. What is the number one thing that you think is the most important to the United States as a whole, number one thing, just sort of a lightning round and we'll go right down the panel. We'll start with Mr. Crusan. Mr. Crusan. For me, it's continued human presence in space. Mr. Richards. And expanding human presence in space with the United States in the lead of it. Mr. Thornton. It's making the Moon accessible to the world and U.S. leadership in doing so. Mr. Alexander. I would agree that it's U.S. leadership in space, and I think the Moon is the right focus for the near term. Dr. Sowers. It's creating that space economy and developing the propellant resources on the Moon. Mr. Dunn. Outstanding. So great answers. Again, just because we're, you know, the Congress of the United States, Mr. Crusan, how do you think this affects national security? Mr. Crusan. So with space, you have resources. With resources come different demands and different agendas. So I think from a national security point of view, the understanding of fundamental resources that exist in our nearest neighbor is incredibly important for us. It can help influence our human spaceflight architectures for sending humans further out into space. So first order of understanding what is there and what is its value to us as the United States. Mr. Dunn. Great, great. Mr. Thornton, you mentioned you had 115 customers? Okay. So what's the difference between your commercial customers and your government customers? Mr. Thornton. Sure. Just to clarify, we have 115 payloads in our pipeline, so it's our sales pipeline, but the difference that we have, about half of that is government, big and small around the world. Half of that is commercial. About half of the commercial part is new startups, and then the other half are established organizations. DHL, who is a partner and sponsor of ours, is an example of that commercial side. They see the innovative shipping to the Moon is an extension of their global shipping service and they're happy to be a part of our mission. On the small size, people are seeing the capability of flying to the surface of the Moon as a means to potentially open their own businesses. We're seeing that with human ashes. We're seeing that--there's groups that are interested in having races on the surface of the Moon, create like a NASCAR experience from the Moon. We've got groups that--we just signed a payload that wants to create a first laser communication node from the surface of the Moon, and that's a huge step because that is two orders of magnitude more bandwidth than we would have otherwise. So radio is about 100, 200 KBPS so it's like a little bit more than a 56K modem, and then a gigabit per second, that's faster than most home internet connections. So you could have virtual reality experiences and HD video and pictures streaming back from the Moon. So it really stands to have a fascinating and immersive experience for people back here on Earth. Mr. Dunn. Outstanding. Anything to add to that, Mr. Richards or Mr. Alexander? Mr. Richards. Well, the excitement is genuine about the potential for the markets. We've got our heads down in the hard job right now of actually proving we can land on the Moon, and getting the technology right, it's a very hard thing to do, and only three superpowers have ever done it. So while having great confidence that these amazing markets are going to open up, we're focused right now on getting it right, and not having all our eggs in one basket. We have purchased several launches. Although we look across the spectrum of emergent and existing launchers agnostically, anybody going our way to Earth orbit, we'd be happy to buy a ride if it's at the right price, but we're after collapsing the cost of access to the Moon and other destinations after Earth orbit. Mr. Alexander. I would just add that, you know, returning to the Moon is a worthy endeavor. There are a lot of resources there as we talked about to bring into the economic sphere of humanity, and to do that, we need to go back in a fairly big way. So we have designed a lander that can take a lot of those capabilities to the surface of the Moon and eventually support human return to the Moon. It's important to do from a U.S. leadership perspective. It's important to do from an economic perspective but it requires a concerted effort. Mr. Dunn. We're going to run out of time here. I have more questions than I could possibly ask in half an hour, but let me go back to Mr. Bera's question because I thought that was a great one, and I didn't really hear an answer. I'm going to ask Dr. Sowers, who owns the water, or who should own the water? You got around that when he asked you last time. Dr. Sowers. Yeah, I think the people that discover it and develop it should own it. I mean, that's a ``should.'' You know, I think we need to make sure that we can establish a framework, you know, regulatory or legal framework that makes that the case. Mr. Dunn. So pirates in space. I love that. Thank you very much, Mr. Chairman. I yield back. Chairman Babin. Yes, sir. Thank you. Now we're going to go to the gentleman from Virginia, Mr. Beyer. Mr. Beyer. Mr. Chairman, thank you, and Mr. Chairman, I'd like to start with an announcement, talking about pirates in space, that we had Andy Weir here, who wrote The Martian, last year, who's a rock star. He was sitting right where Dr. Sowers it. And yesterday they announced his new book, Artemis, which is about a smuggler on the Moon, and it comes out November 14th, so that'll be fun. First question really is for Mr. Crusan. In Mr. Thornton's testimony, he talks about NASA authorization, Congress and NASA on authorizing Frontier class lander services similar to the Venture class launch services. What's your perspective on that, and how does that fit in with NASA's vision? Mr. Crusan. So it's actually right in line with what we were thinking about doing here now is we're proceeding towards actually buying landed services. That is in essence what he's suggesting. It's just a fundamental of what scale do you go to at what time, and we want to make sure that we're buying services that are kind of on the same scale as industry is growing, so just matching that growth rate and having the government as a customer, not the sole provider or purchaser of services. That's the balance that we've been seeking from the NASA side. Mr. Beyer. Great. Thank you. Mr. Crusan, Ranking Member Johnson asked a question about artifacts. As you develop the Lunar CATALYST program, has there been discussion of the U.S. government artifacts on the Moon and any steps to protect and preserve them? Mr. Crusan. Yeah, in fact, actually, we did develop a standard and published it about interaction effects for any of the Apollo landing sites, and we worked collaboratively with the Google Lunar XPRIZE and actually many of the industry folks that are here at the table, and agreed on those standards and stand backs from those locations, making sure we don't have things like plume interactions of dust settling and covering up footprints, and we publically posted those standards out there, and industry has accepted those as guidance for their future missions that they want to conduct. Mr. Beyer. Great. Thank you. Mr. Richards, you've clearly been a visionary in this for a long time. One of the big debates in this Committee, we talked to the previous NASA Administrator and said what's the big picture, what's the constancy of purpose with NASA, and he said very simply, ``Mars.'' So one of the debates here has been, do we go directly to Mars or do we go to the Moon first, and there's a big division obviously within the space community about this. Is this development of the private sector Moon stuff a way to have our cake and eat it too? Mr. Richards. So it's all of the above. The Moon is not an off ramp to Mars, it's an on ramp to Mars, and by building--you know, to go to space to stay, it has to pay, so by building out infrastructure and capabilities in a cislunar economy, we can assure that a balanced partnership between the government and the private sector will learn how to live off-planet, we'll learn how to use the resources that are out there and that will dramatically lower the cost of going to Mars, and we'll learn a lot about our human condition, things that humans have never experienced being that far from Planet Earth. We can practice those things and learn a lot by practicing at the Moon. But it's not just the way to get to Mars. It's also a definitive destination of itself. I look forward to the generation of kids that'll look up and see lights on the Moon. You know, there'll be a completely different perspective of humanity as a spacefaring and a multi-world civilization. And I would like to comment on, you know, a number of questions and who owns the Moon and who owns the water. So the United States Congress--thank you--answered that question for us in 2015. We will talk about that, but what you said was, those who go peacefully under the auspices and with due regard to the international treaties will own what we peacefully obtain, and this is not an appropriation question, but also with Moon Express. Before I could assure our investors that we could blaze a trail to the Moon, I had to blaze a trail through the regulatory framework that would allow us to go there. So Moon Express in 2016, thank you to a number of members in this room, achieved the first ever U.S. authorization for private sector missions beyond Earth orbit and to the Moon under the terms of the Outer Space Treaty. Mr. Beyer. Great. Thank you very much. Mr. Alexander, I only have 30 seconds. One of the things you recommended was streamlining the licensing of commercial launches. How do we go about that process? Mr. Alexander. I think there's a couple of different issues. We have an issue with licensing of commercial launches, which currently the expendable launch vehicle framework that's been used for the last 20 years is sort of duplicated between the Air Force and the FAA, and those of us developing reusable launch vehicles like New Glenn are being licensed under an FAA regime and so there's reusable launch vehicles and so there's a little bit of duplicative work that has to be done with the FAA and the Air Force. I think separately to Bob Richards' comments there about licensing activities beyond launch and beyond Earth orbit that clarity that he responded or reflected in getting the first license for an activity on the Moon, finding a home for that within the U.S. government is also an important matter. Mr. Beyer. Thank you, Mr. Chairman. Chairman Babin. Yes, sir. Thank you. And now I'd like to recognize the gentleman from California, Mr. Rohrabacher. Mr. Rohrabacher. Thank you very much, Mr. Chairman, and I can't tell you how great it is to be here listening to people talk about a mission that we can accomplish. We sit here listening about people wanting to spend billions and billions of dollars on mission impossible, which is Mars, and I take it that right now we actually have the capability if we actually commit the resources to accomplish the mission to the Moon now. Isn't that correct? Yes or no? Mr. Crusan. Technically no objections. Mr. Richards. Absolutely the capability, and we would love to partner. Mr. Thornton. Absolutely. All systems go. Mr. Alexander. Yes, absolutely. Dr. Sowers. Yes. Mr. Rohrabacher. Okay. Now, if we did that same question to people about well, are if we spend the billions of dollars for the Mars mission, are you sure we're going to be able to accomplish this? I don't think we would have anywhere near the same answers that we just got. And, you know, sometimes it is really difficult to get our country and our government and our bureaucracy even when it's at NASA to sort of focus on what we can do even though we're not doing it now, and I remember that when I first got here, which was a long time ago now in this very same Committee, that we had to force NASA into trying to do its mission around the Moon instead of around the equator of the Moon that we had to convince them maybe doing the orbit would be really important, and we actually had to force them to do it, and I will tell you because there were some visionaries who said there might be ice at the polar areas which we could use then as a very important component of future travel in space but also things we could do with hydrogen, et cetera. Let me note the person who made that argument to me originally is sitting right over there. His name is Jim Muncy, who is one of the real pioneers of--there you go, Jim. You get the credit, and he should get the credit because he was a visionary and could see the importance of making sure whether there was water there or not, and why always, always go around the equator and not around the polar areas to find out what was going on in the Moon. So let me just suggest that this is a very exciting potential and, you know, a lot of people--you know, half the world--I don't know if you know this--half the world when they look at the Moon, they see a man on the Moon, but the other half of the world sees what? A rabbit in the Moon. So when you look at the Moon next time, half the world doesn't even seen a man in the Moon. One thing that really worked for us when we were leading the world when it came to the Moon and space projects is what the world looked up and they looked at the Moon and they say there are Americans on the Moon. That impressed the entire world. It's time for us to impress the world again, the young people of the world and their own young people, and the potentials that you've talked about today are very exciting. Let me ask this. One of the things that I have advocated over the years when it comes to commercial space activities is, we should be encouraging them. Instead of giving them subsidies, we could give them tax breaks, and I have a piece of legislation that suggests commercial activity in space, zero gravity should be zero taxed. Would that type of approach be helpful to any of your operations in terms of making sure that the tax load that you wouldn't have to be carrying the burden of a tax load up to space with you, and just your thoughts on zero gravity, zero tax, right down the line. Mr. Richards. So quickly, as an interim measure, that certainly sounds attractive. You know, I believe that the first companies--the first trillionaire companies will be created through investments in space resources, so eventually that will be a tax base, but zero G, zero tax is great. You might also think about things like R&D tax credits for companies that typically invest in resource development, and it's that type of money that we're going to have to invest in space. Mr. Rohrabacher. But of course, if you think you're going to be successful and you're saying there's not going to be a capital gains tax on someone who invests in your company, that's pretty powerful. Mr. Thornton. I'd echo that it's certainly an interesting idea and certainly could help. The space is really hard. It's a very, very challenging environment, and building a business around space is doubly hard. So anything that can support that is certainly something we would support ourselves. Mr. Rohrabacher. Okay. Mr. Alexander. I would echo what both of the gentlemen said, that, you know, revenue-based tax credits are helpful or tax rates, low tax rates, but also the R&D tax credits as well. Dr. Sowers. You know, I think all of these guys are going to say that, you know, tax breaks look good to them. I think if we're going to invest, I think, you know, maybe perhaps better leverage in our investment is some of the basic science and R&D. For example, you know, we need the guys with the mules and the picks on the Moon to see, you know, where the real motherlode of the ice is, and investment in some of those kinds of things which actually, you know, lowers investment risk for commercial operation maybe also something to consider. Mr. Rohrabacher. Well, tax breaks as compared to subsidies give greater decision-making to the entrepreneur, and when you were talking about subsidies, which have to be approved from government officials, you have more bureaucratic decision- making, and I would just suggest, Mr. Chairman, that we unleash our entrepreneurs and we will be very pleased with what--our future generations will be very pleased with our accomplishments. Thank you very much. Chairman Babin. Yes, sir. Thank you. I now recognize the gentleman from Colorado, Mr. Perlmutter. Mr. Perlmutter. Thank you, Dr. Babin. Thank you all for your testimony today. I want to say to Dr. Sowers, I have my Colorado School of Mines tie on today, and I want to applaud you for leading the space resources department at the college, so thank you very much. I have two themes I'd like to talk about. One is property rights and the other is Mars. To my friend, Mr. Rohrabacher, we're going to get there by 2033. So let's start with property rights. Mr. Richards, I'd like to talk to you about that. And I think you're right. I think in 2015, we gave a lot of comfort to entrepreneurs such as yourself and the other companies to get out there, but I would ask you so the section I think you're referring to is 51303, Asteroid Resource and Space Resource Rights, and it says ``shall be entitled to any asteroid resource or space resource obtained including to possess, own, transport, use and sell the asteroid resource or space resource obtained in accordance with applicable law including international obligations.'' So what is the applicable law? I mean, I don't want to be like a judge sitting up here but I think we need to--personally, I think we've got more work to do to provide the framework that Dr. Sowers was talking about. Mr. Richards. There's a lot more work to do. It's a global conversation, and I applaud the United States for taking the step forward of explicitly saying what I think was implicit in the Outer Space Treaty. There are a number of treaties but the Outer Space Treaty is the predominant one that dictates how humans are going to behave in space and to each other in space. So saying that, staying away from the question of property rights and that term, although I think we know what it means in this chamber, internationally is incendiary at this point, and in Moon Express's case, none of our investors said hey, make sure you have those property rights down or we can't invest. That wasn't the case. I believe that there will be an ongoing conversation. We don't have to answer all the questions today but the step that was taken was a very forward step that was very much appreciated. The next step for us of getting the authorization under that law and in due regard to the Outer Space Treaty, even though there wasn't a regulatory framework for us to even apply for a Moon Express mission, we created one out of thin air and with the support of many agencies received a one-time permission to do so. So this is still evolving, and it's--the onus is on private sector individuals and companies to behave properly and do things responsibly and think about them because it will be a global conversation. Mr. Perlmutter. And I guess my concern, and Mr. Thornton and Mr. Alexander, if you guys want to chime in, is just, Dr. Sowers talked about pirates, but we're talking about mining, we're talking about taking resources, so, is there title? Is somebody jumping somebody else's claim? Exactly how do you see this working? Because I think from our point of view as legislators, we need some help trying to beef this up a little bit so that we don't have jumping claims or piracy or whatever. Mr. Richards. It would be nice not to be in a reactive mode forever. Mr. Perlmutter. All right. So let me ask Mr. Thornton. Mr. Thornton. So in our view, the Commercial Space Launch Competitiveness Act of 2015, currently that's sufficient for where we're at. We don't view that as a barrier for development or investment or partners to even invest or send payloads in the resources realm. So currently, we don't see the strong push for additional change at the moment. It's also reassuring that the government of Luxembourg recently had a similar thing where they could say that Luxembourg companies could own the rights for resources. So we're starting to see international---- Mr. Perlmutter. Activity? Mr. Thornton. -- activity, and then also agreement with the norms that the United States is creating. Mr. Perlmutter. Mr. Alexander? Mr. Alexander. I think it's important for the U.S. government through the State Department to be talking internationally with its counterparts, particularly in the U.N. Committee on Peaceful Uses of Outer Space about what the Space Treaty, Outer Space Treaty, allows and how we're interpreting that. It's important for us as an industry to have the certainty that comes with, like you said, with the 2015 law but also that it's founded in the Outer Space Treaty, which basically say that those resources are available to everybody so that when we go, let's say, to the Moon and discover water ice there, we're not saying now we own every piece of resource on the Moon and every bit of water ice on the Moon; we're saying, you know, we are able to utilize what we are able to extract and be able to sell that and have property rights over that but not rights to the entire Moon. So I think it's important from a government perspective that we go out and explain what our interpretation of the treaty is and the framework that we're establishing and lead by example. Mr. Perlmutter. Thank you. If you would indulge me with one more minute of questions? Chairman Babin. Can I make one---- Mr. Perlmutter. Yes. Chairman Babin. --just say one thing? And what you guys are talking about demonstrates the importance of why the House and the Senate need to get this American Space Free Enterprise Act completed. Go ahead. Mr. Perlmutter. So to Dr. Sowers and Mr. Crusan on the Mars theme I'd like to talk about. How do you see us working with the private sector or international partners and going to the Moon and developing some commercial activities up there? How does that help us in your opinions to get us to Mars? Dr. Sowers? Dr. Sowers. Well, I'll just give you one example. If you can develop the water resource on the Moon into propellant, there's studies that have been done, there was a recent one done out of MIT that suggested that you could reduce the cost of a Mars mission by about a factor of three. You know, clearly there's assumptions in there, you know, and you have to assume things about the nature of the resource and the cost to extract it and refine it but with reasonable assumptions, you know, a factor of three seems quite doable. So, you know, the resources on the Moon could be immensely valuable in helping us get to Mars. Mr. Perlmutter. Mr. Crusan? Mr. Crusan. Yeah, these are not mutually exclusive activities. Our human spaceflight plans right now, we're working on concepts of deep space gateway and transport-type architecture that then also working with the commercial industry on landed and surfaces, we can conduct tests of technologies, advancement of understanding of the resources, if the resources are there, is there a means by which to get them from there to a staging point that we can use for deep space transportation in addition to that. So these activities don't need to be mutually exclusive. Mr. Perlmutter. All right. Thank you, and thanks, Mr. Chair. I yield back. Chairman Babin. Yes, sir. Thank you. I want to thank the witnesses for their very valuable and exciting testimony today and your answers, and the Members for the questions that we've asked. The record will remain open for two weeks for additional comments and written questions from Members, because I know I have one that I would like to ask as well, but I want to say this: Thank you for being here. This meeting is adjourned. [Whereupon, at 11:32 a.m., the Subcommittee was adjourned.] Appendix I ---------- Answers to Post-Hearing Questions [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]