29 May 1998
Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html

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[Federal Register: May 28, 1998 (Volume 63, Number 102)]
[Presidential Documents]
[Page 29333-29337]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28my98-156]

[[Page 29333]]

_______________________________________________________________________

Part III

The President

_______________________________________________________________________

Executive Order 13085--Establishment of the Enrichment Oversight
Committee

                        Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 29335]]

                Executive Order 13085 of May 26, 1998


                Establishment of the Enrichment Oversight
                Committee

                By the authority vested in me as President by the
                Constitution and the laws of the United States of
                America, and in order to further the national security
                and other interests of the United States with regard to
                uranium enrichment and related businesses after the
                privatization of the United States Enrichment
                Corporation (USEC), it is ordered as follows:

                Section 1. Establishment. There is hereby established
                an Enrichment Oversight Committee (EOC).

                Sec. 2. Objectives. The EOC shall monitor and
                coordinate United States Government efforts with
                respect to the privatized USEC and any successor
                entities involved in uranium enrichment and related
                businesses in furtherance of the following objectives:

                    (a) The full implementation of the Agreement
                Between the Government of the United States of America
                and the Government of the Russian Federation Concerning
                the Disposition of Highly Enriched Uranium (HEU)
                Extracted from Nuclear Weapons, dated February 18, 1993
                (``HEU Agreement''), and related contracts and
                agreements by the USEC as executive agent or by any
                other executive agents;
                    (b) The application of statutory, regulatory, and
                contractual restrictions on foreign ownership, control,
                or influence in the USEC, any successor entities, and
                any other executive agents;
                    (c) The development and implementation of United
                States Government policy regarding uranium enrichment
                and related technologies, processes, and data; and
                    (d) The collection and dissemination of information
                relevant to any of the foregoing on an ongoing basis,
                including from the Central Intelligence Agency and the
                Federal Bureau of Investigation.

                Sec. 3. Organization. (a) The EOC shall be Chaired by a
                senior official from the National Security Council
                (NSC). The Chair shall coordinate the carrying out of
                the purposes and policy objectives of this order. The
                EOC shall meet as often as appropriate, but at least
                quarterly, and shall submit reports to the Assistant to
                the President for National Security Affairs
                semiannually, or more frequently as appropriate. The
                EOC shall prepare annually the report for the
                President's transmittal to the Congress pursuant to
                section 3112 of the USEC Privatization Act, Public Law
                104-134, title III, 3112(b)(10), 110 Stat. 1321-344,
                1321-346 (1996).

                    (b) The EOC shall consist of representatives from
                the Departments of State, the Treasury, Defense,
                Justice, Commerce, Energy, and the Office of Management
                and Budget, the NSC, the National Economic Council, the
                Council of Economic Advisers, and the Intelligence
                Community. The EOC shall formulate internal guidelines
                for its operations, including guidelines for convening
                meetings.
                    (c) The EOC shall coordinate sharing of information
                and provide direction, while operational
                responsibilities resulting from the EOC's oversight
                activities will rest with EOC member agencies.
                    (d) At the request of the EOC, appropriate
                agencies, including the Department of Energy, shall
                provide day-to-day support for the EOC.

[[Page 29336]]

                Sec. 4. HEU Agreement Oversight. The EOC shall form an
                HEU Agreement Oversight Subcommittee (the
                ``Subcommittee'') in order to continue coordination of
                the implementation of the HEU Agreement and related
                contracts and agreements, monitor actions taken by the
                executive agent, and make recommendations regarding
                steps designed to facilitate full implementation of the
                HEU Agreement, including changes with respect to the
                executive agent. The Subcommittee shall be chaired by a
                senior official from the NSC and shall include
                representatives of the Departments of State, Defense,
                Justice, Commerce, and Energy, and the Office of
                Management and Budget, the National Economic Council,
                the Intelligence Community, and, as appropriate, the
                United States Trade Representative, and the Council of
                Economic Advisers. The Subcommittee shall meet as
                appropriate to review the implementation of the HEU
                Agreement and consider steps to facilitate full
                implementation of that Agreement. In particular, the
                Subcommittee shall:

                    (a) have access to all information concerning
                implementation of the HEU Agreement and related
                contracts and agreements;
                    (b) monitor negotiations between the executive
                agent or agents and Russian authorities on
                implementation of the HEU Agreement, including the
                proposals of both sides on delivery schedules and on
                price;
                    (c) monitor sales of the natural uranium component
                of low-enriched uranium derived from Russian HEU
                pursuant to applicable law;
                    (d) establish procedures for designating
                alternative executive agents to implement the HEU
                Agreement;
                    (e) coordinate policies and procedures regarding
                the full implementation of the HEU purchase agreement
                and related contracts and agreements, consistent with
                applicable law; and
                    (f) coordinate the position of the United States
                Government on any issues that arise in the
                implementation of the Memorandum of Agreement with the
                USEC for the USEC to serve as the United States
                Government Executive Agent under the HEU Agreement.

                Sec. 5. Foreign Ownership, Control, or Influence
                (FOCI). The EOC shall collect information and monitor
                issues relating to foreign ownership, control, or
                influence of the USEC or any successor entities.
                Specifically, the EOC shall:

                    (a) monitor the application and enforcement of the
                FOCI requirements of the National Industrial Security
                Program established by Executive Order 12829 with
                respect to the USEC and any successor entities (see
                National Industrial Security Program Operating Manual,
                Department of Defense 2-3 (Oct. 1994));
                    (b) monitor and review reports and submissions
                relating to FOCI issues made by the USEC or any
                successor entity to the Nuclear Regulatory Commission
                (NRC) under the Atomic Energy Act of 1954, 42 U.S.C.
                2011 et seq. (1994), and the USEC Privatization Act,
                Public Law 104-134, title III, 110 Stat. 1321-335 et
                seq. (1996);
                    (c) ensure coordination with the Intelligence
                Community of the collection and analysis of
                intelligence and ensure coordination of intelligence
                with other information related to FOCI issues; and
                    (d) ensure coordination with the Committee on
                Foreign Investment in the United States.

                Sec. 6. Domestic Enrichment Services. The EOC shall
                collect and analyze information related to the
                maintenance of domestic uranium mining, enrichment, and
                conversion industries, provided that such activities
                shall be undertaken in a manner that provides
                appropriate protection for such information. In
                particular, the EOC shall:

                    (a) collect and review all public filings made by
                or with respect to the USEC or any successor entities
                with the Securities and Exchange Commission;

[[Page 29337]]

                    (b) collect information from all available sources
                necessary for the preparation of the annual report to
                the Congress required by section 3112 of the USEC
                Privatization Act, as noted in section 3(a) of this
                order, including information relating to plans by the
                USEC or any successor entities to expand or contract
                materially the enrichment of uranium-using gaseous
                diffusion technology;
                    (c) collect information relating to the development
                and implementation of atomic vapor laser isotope
                separation technology;
                    (d) to the extent permitted by law, and as
                necessary to fulfill the EOC's oversight functions,
                collect proprietary information from the USEC, or any
                successor entities, provided that the collection of
                such information shall be undertaken so as to minimize
                disruption to the normal functioning of the private
                corporation. For example, such information would
                include the USEC's financial statements prepared in
                accordance with standards applicable to public
                registrants and the executive summary of the USEC's
                strategic plan as shared with its Board of Directors,
                as well as timely information on its unit production
                costs, capacity utilization rates, average pricing and
                sales for the current year and for new contracts,
                employment levels, overseas activities, and research
                and development initiatives. Such information shall be
                collected on an annual basis, with quarterly updates as
                appropriate; and
                    (e) coordinate with relevant agencies in monitoring
                the levels of natural and enriched uranium and
                enrichment services imported into the United States.

                Sec. 7. Coordination with the Nuclear Regulatory
                Commission. Upon notification by the NRC that it seeks
                the views of other agencies of the executive branch
                regarding determinations necessary for the issuance,
                reissuance, or renewal of a certificate of compliance
                or license to the privatized USEC, the EOC shall convey
                the relevant views of these other agencies of the
                executive branch, including whether the applicant's
                performance as the United States agent for the HEU
                Agreement is acceptable, on a schedule consistent with
                the NRC's need for timely action on such regulatory
                decisions.

                    (Presidential Sig.)<Clinton1><Clinton2>

                THE WHITE HOUSE,

                    May 26, 1998.

[FR Doc. 98-14407
Filed 5-27-98; 12:26 pm]
Billing code 3195-01-P
