The Space Politics blog reports in a Jan. 23, 2013 post that a deal has been reached between Virgin Galactic and New Mexico trial lawyers over a proposed bill that would extend limited indemnification to suppliers of space tourism companies such as Virgin Galactic as well as the companies themselves. The legislation is considered crucial to keep Virgin Galactic at Space Port America near Los Cruces, New Mexico.
Details of the compromise are not available as of yet. But apparently it would involve extending limited liability to supplies of Virgin Galactic in the event of a catastrophic accident occurring during one of its sub orbital tourist jaunts. In return all companies involved will be required to carry $1 million in liability insurance.
Virgin Galactic had threatened to leave New Mexico, leaving its space port without an anchor tenant, if the state did not extend limited indemnification to its suppliers, thus shielding them from law suits. The compromise apparently opens the way to the passage of the legislation, clearing away a legal hurdle for Virgin Galactic to begin operations in New Mexico.