Presidential Documents

29335

Federal Register

Vol. 63, No. 102

Thursday, May 28, 1998

Title 3—

The President

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.
29336 Federal Register / Vol. 63, No. 102 /Thursday, May 28, 1998 / Presidential Documents

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;
Federal Register / Vol. 63, No. 102 /Thursday, May 28, 1998 / Presidential Documents 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

[FR Doc. 98–14407

consistent with the NRC’s need for timely action on such regulatory decisions.

THE WHITE HOUSE,

May 26, 1998.

œ–

Filed 5–27–98; 12:26 pm]

Billing code 3195–01–P