I
104TH CONGRESS
1ST SESSION
H. R. 2619
To impose sanctions on foreign persons exporting certain goods or technology
that would enhance Iran’s ability to explore, extract, refine, or produce
petroleum products or natural gas.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 10, 1995
Mr. GEJDENSON (for himself and Mr. BURTON of Indiana) introduced the fol-
lowing bill; which was referred to the Committee on International Rela-
tions, and in addition to the Committees on Ways and Means, Banking
and Financial Services, and Government Reform and Oversight, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the commit-
tee concerned
A BILL
To impose sanctions on foreign persons exporting certain
goods or technology that would enhance Iran’s ability
to explore, extract, refine, or produce petroleum products
or natural gas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Iran Foreign Oil Sanc-
tions Act of 1995’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The efforts of the Government of Iran to
acquire weapons of mass destruction and the means
to deliver them endanger potentially the national se-
curity and foreign policy interests of the United
States and those countries with which it shares com-
mon strategic and foreign policy objectives.
(2) The objective of preventing the proliferation
of weapons of mass destruction through existing
multilateral and bilateral initiatives requires addi-
tional efforts to deny Iran the financial means to
sustain its nuclear, chemical, biological, and missile
weapons programs.
SEC. 3. DECLARATION OF POLICY.
The Congress declares that it is the policy of the
United States to deny Iran the ability to fund the develop-
ment and acquisition of weapons of mass destruction and
the means to deliver them by preventing Iran from acquir-
ing equipment or services that would enhance Iran’s abil-
ity to extract, refine, process, store, or transport petro-
leum, petroleum products, or natural gas.
SEC. 4. IMPOSITION OF SANCTIONS ON FOREIGN PERSONS
EXPORTING 
CERTAIN 
GOODS 
OR 
TECH-
NOLOGY TO IRAN.
(a) IN GENERAL.—The President shall impose the
mandatory sanctions described in section 5(1) and may
impose one or more of the discretionary sanctions de-
scribed in section 5(2), if the President determines that
a foreign person has, with requisite knowledge, on or after
the date of the enactment of this Act—
(1) exported, transferred, or released to Iran,
nationals of Iran, or entities owned or controlled by
Iran or nationals of Iran any goods or technology
identified on the List of Petroleum and Natural
Gas-Related Goods and Technology established
under section 9 (hereafter in this Act referred to as
the ‘‘List’’)—
(A) through the export from the United
States of any goods or technology identified in
the List, or
(B) through the export from any other
country or territory of any goods or technology
identified in the List, whether or not the goods
or technology is subject to the jurisdiction of
the United States,
for use in the exploration, extraction, refining, or
production of petroleum, petroleum products, or nat-
ural gas or the products thereof in Iran, or in areas
in which Iran has rights to explore for or extract pe-
troleum, petroleum products, or natural gas; or
(2) engaged in the exploration, extraction, re-
fining, or production of petroleum, petroleum prod-
ucts, or natural gas or the products thereof in Iran,
or in areas in which Iran has rights to explore for
or extract petroleum, petroleum products, or natural
gas.
(b) PERSONS AGAINST WHICH THE SANCTIONS ARE
TO BE IMPOSED.—The sanctions described in subsection
(a) shall be imposed on—
(1) the foreign person with respect to whom the
President makes the determination described in that
subsection;
(2) any successor entity to that foreign person;
(3) any foreign person that is a parent or sub-
sidiary of that person if that parent or subsidiary
with requisite knowledge engaged in the activities
which were the basis of that determination; and
(4) any foreign person that is an affiliate of
that person if that affiliate with requisite knowledge
engaged in the activities which were the basis of that
determination and if that affiliate is controlled in
fact by that person.
For purposes of this Act, any person or entity described
in this subsection shall be referred to as a ‘‘sanctioned
foreign person’’.
SEC. 5. DESCRIPTION OF SANCTIONS.
The sanctions to be imposed on a sanctioned foreign
person under section 4(a) are as follows:
(1) MANDATORY SANCTIONS.—
(A) 
PROCUREMENT
SANCTION.—The
United States Government shall not procure, or
enter into any contract for the procurement of,
any goods or services from the sanctioned for-
eign person.
(B) EXPORT SANCTION.—(i) The United
States Government shall not issue any license
or grant any other permission or authority to
export any goods or technology to a sanctioned
foreign person under—
(I) the Export Administration Act of
1979;
(II) the Arms Export Control Act;
(III) the Atomic Energy Act of 1954;
or
(IV) any other statute that requires
the prior review and approval of the
United States Government as a condition
for the exportation of goods and services,
or their reexport, to any sanctioned foreign
person.
(ii) The head of the appropriate depart-
ment or agency shall periodically publish a list
of all sanctioned foreign persons denied licenses
under clause (i).
(C) IMPORT SANCTION.—(i) The importa-
tion into the United States of products pro-
duced by any sanctioned foreign person shall be
prohibited.
(ii) Clause (i) includes application to—
(I) the entry of any finished product
or component part, whether shipped di-
rectly by the sanctioned foreign person or
by another entity; and
(II) the contracting with a sanctioned
foreign person for the provision of services
in the United States or abroad by United
States persons and by foreign persons in
the United States.
(D) PROHIBITION
AGAINST
EXPORT-IM-
PORT BANK ASSISTANCE FOR EXPORTS TO FOR-
EIGN PERSONS.—The Export-Import Bank of
the United States may not guarantee, insure,
extend credit, or participate in the extension of
credit in connection with the export of any
goods or services to any sanctioned foreign per-
son.
(2) DISCRETIONARY SANCTIONS.—
(A) INVESTMENT IN THE UNITED STATES;
AUTHORITY TO REVIEW CERTAIN MERGERS, AC-
QUISITIONS, AND TAKEOVERS.—The President
may exercise his authority under section 721(d)
of the Defense Production Act of 1950 (50
U.S.C. App. 2170(d)) to investigate and pro-
hibit mergers, acquisitions, takeovers, and other
similar investments in the United States by per-
sons engaged in interstate commerce—
(i) if such actions involve any sanc-
tioned foreign person; and
(ii) if the President finds, in addition
to the requirements of section 721(e) of
such Act, that the participation of any
sanctioned foreign person in activities to
assist, directly or indirectly, Iran to in-
crease the revenue available to that govern-
ment by extracting petroleum, petroleum
products, natural gas, or engaging in other
activities described in section 9(a)(1)
threatens to impair the national security
and foreign policy interests of the United
States.
(B) LOANS FROM UNITED STATES FINAN-
CIAL INSTITUTIONS.—The United States Gov-
ernment may prohibit any United States finan-
cial institution from making any loan or provid-
ing any credit to any sanctioned foreign person
except with respect to activities engaged in by
such foreign person to relieve human suffering,
within the meaning of section 203(b)(2) of the
International Emergency Economic Powers Act
(50 U.S.C. 1702(b)(2)).
(C) PROHIBITIONS ON FOREIGN FINANCIAL
INSTITUTIONS.—The following prohibitions may
be imposed against a sanctioned foreign person
that is a financial institution:
(i) DESIGNATION AS PRIMARY DEAL-
ER.—Neither the Board of Governors of
the Federal Reserve System nor the Fed-
eral Reserve Bank of New York may des-
ignate, or permit the continuation of any
prior designation of, such financial institu-
tion as a primary dealer in United States
Government debt instruments.
(ii) GOVERNMENT
FUNDS.—Such fi-
nancial institution shall not serve as agent
of the United States Government or serve
as repository for United States Govern-
ment funds.
(iii) 
RESTRICTIONS
ON
OPER-
ATIONS.—Such financial institutions shall
not, directly or indirectly—
(I) commence any line of busi-
ness in the United States in which it
was not engaged as of the date of the
determination by the President under
section 4(a) leading to the imposition
of sanctions; or
(II) conduct business from any
location in the United States at which
it did not conduct business as of the
date of such determination by the
President under section 4(a).
SEC. 
6. 
WAIVER 
AUTHORITY 
REGARDING 
SANCTIONS
AGAINST IRAN.
The sanctions under section 5 shall not apply if the
President determines and certifies to the appropriate con-
gressional committees that Iran—
(1) has substantially improved its adherence to
internationally recognized standards of human
rights;
(2) has ceased its efforts to design, develop,
manufacture, or acquire—
(A) a nuclear explosive device or related
materials and technology;
(B) chemical and biological weapons;
(C) missiles and missile launch technology;
and
(D) any missile or other delivery system
capable of reaching the territory of a country
the government of which shares strategic inter-
ests with the United States and is engaged in
defense cooperation, including the acquisition of
items identified in the United States Munitions
List, with the United States; and
(3) has ceased all forms of support for inter-
national terrorism.
SEC. 7. WAIVER OF SANCTIONS AGAINST FOREIGN PER-
SONS.
(a) 
CONSULTATION
WITH
FOREIGN
GOVERN-
MENTS.—
(1) CONSULTATIONS.—If the President makes a
determination described in section 4(a) with respect
to a foreign person, the Congress urges the Presi-
dent to initiate consultations immediately with the
foreign government with primary jurisdiction over
that foreign person with respect to the imposition of
the sanctions pursuant to this Act.
(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—In order to pursue such consultations with
that government, the President may delay imposition
of the sanctions under section 5 for up to 90 days.
Following such consultations, the President shall im-
mediately impose sanctions unless the President de-
termines and certifies to the Congress that the gov-
ernment has taken specific and effective actions, in-
cluding the imposition of appropriate penalties, to
terminate the involvement of the foreign person in
the activities that resulted in the imposition of sanc-
tions against the foreign person.
(3) ADDITIONAL
DELAY
IN
IMPOSITION
OF
SANCTIONS.—The President may delay the imposi-
tion of sanctions for up to an additional 45 days if
the President determines and certifies to the Con-
gress that the government with primary jurisdiction
over the foreign person is in the process of taking
the actions described in paragraph (2).
(4) REPORT TO CONGRESS.—Not later than 45
days after making a determination under section
4(a), the President shall submit to the appropriate
congressional committees a report on the status of
consultations with the appropriate foreign govern-
ment under this subsection, and the basis for any
determination under paragraph (3) that such gov-
ernment has taken specific corrective actions.
(b) ASSURANCES FROM FOREIGN PERSONS.—The
President may terminate the sanctions against a sanc-
tioned foreign person, if the foreign person provides assur-
ances to the Secretary that the actions that resulted in
the determination to impose sanctions have been termi-
nated and has provided specific assurances that it will nei-
ther directly nor indirectly, or through any other person,
including subsidiaries and affiliates, direct or participate
in any activity described in section 4(a)(1) or to engage
in activities described in section 4(a)(2).
(c) EXCEPTIONS.—The President shall not be re-
quired to apply or maintain a sanction under section
4(a)—
(1) in the case of procurement of defense arti-
cles or defense services—
(A) under existing contracts or sub-
contracts, including the exercise of options for
production quantities to satisfy requirements
essential to the national security of the United
States;
(B) if the President determines in writing
that the person or other entity to which the
sanction would otherwise be applied is a sole
source supplier of the defense articles or serv-
ices, that the defense articles or services are es-
sential, and that alternative sources are not
readily or reasonably available; or
(C) if the President determines in writing
that such articles or services are essential to the
national security under defense coproduction
agreements;
(2) to products or services provided under con-
tracts entered into before the date on which the
President publishes his intention to impose the sanc-
tion;
(3) to—
(A) spare parts which are essential to
United States products or production;
(B) component parts, but not finished
products, essential to United States products or
production; or
(C) routine servicing and maintenance of
products, to the extent that alternative sources
are not readily or reasonably available;
(4) to information and technology essential to
United States products or production; or
(5) to medicines, medical supplies, or other hu-
manitarian items.
(d) PRESIDENTIAL NATIONAL SECURITY WAIVER.—
(1) The President may waive the requirement in section
4(a) to impose a sanction or sanctions on a foreign person
in section 4(b)—
(A) for an export, transfer, or release of goods
or technology that are not subject to the jurisdiction
of the United States, or
(B) for any activity described in section 4(a)(2),
15 days after the President determines and so reports to
the appropriate congressional committees that it is essen-
tial to the national interest of the United States to exer-
cise such waiver authority.
(2) Any such report shall provide a specific and de-
tailed rationale for such determination, including—
(A) a description of the conduct, including (in
the case of activity described in section 4(a)(1)) the
identification of the goods or technology involved in
the violation, that resulted in the determination of a
violation or violations;
(B) an explanation of the efforts to secure the
cooperation of the government with primary jurisdic-
tion of the foreign person committing the violation
to terminate or penalize the activities that resulted
in the determination of a violation;
(C) an estimate as to the significance of the
goods or technology exported to Iran, or the activi-
ties described in section 4(a)(2), as the case may be,
on that country’s ability to extract, refine, process,
store, or transport petroleum, petroleum products,
or natural gas; and
(D) a statement as to the response of the
United States in the event that such foreign person
engages in other activities that under this Act would
constitute an additional violation.
SEC. 8. TERMINATION OF SANCTIONS.
(a) DURATION OF SANCTIONS.—The sanctions im-
posed pursuant to this Act shall apply for a period of not
less than 12 months following the determination by the
President under section 4(a) and shall cease to apply
thereafter only if the President determines and certifies
to the Congress that reliable information indicates that
the foreign person with respect to which the determination
was made under section 4(a) has ceased to aid or abet
Iran, any national of Iran, or any entity owned or con-
trolled by Iran or nationals of Iran, to acquire goods and
technology on the List for uses described in section
4(a)(1), or has ceased to engage in activities described in
section 4(a)(2), as the case may be.
(b) WAIVER.—
(1) CRITERION
FOR
WAIVER.—The President
may waive the continued application of any sanction
imposed on any foreign person pursuant to this Act,
after the end of the 12-month period beginning on
the date on which that sanction was imposed on that
person, if the President determines and certifies to
the Congress that the continued imposition of the
sanction would have a serious adverse effect on
United States national security.
(2) NOTIFICATION OF AND REPORT TO CON-
GRESS.—If the President decides to exercise the
waiver authority provided in paragraph (1), the
President shall so notify the Congress not less than
30 days before the waiver takes effect. Such notifica-
tion shall include a report fully articulating the ra-
tionale and circumstances which led the President to
exercise the waiver authority.
SEC. 9. GOODS AND TECHNOLOGY SUBJECT TO EXPORT
CONTROL RESTRICTIONS.
(a) CONTROL LIST.—(1) For purposes of the deter-
minations to be made pursuant to section 4(a), the Presi-
dent shall establish and maintain the List of Petroleum
and Natural Gas-Related Goods and Technology, consist-
ing of goods or technology (including software and tech-
nical data) that the President determines would materially
contribute to the exploration, extraction, refining, or pro-
duction of petroleum, petroleum products, or natural gas
and the products thereof in or by Iran, including goods
and technology that are required for the development, pro-
duction, or use of facilities (including the repair, mainte-
nance, or operation of equipment) for the petroleum and
natural gas activities described in this subsection.
(2) The President, within 60 days after the date of
the enactment of this Act, shall cause the List to be pub-
lished in the Federal Register, together with any regula-
tions issued with respect thereto. Thereafter, any revisions
to the List or amendments to the regulations shall be pub-
lished in the same manner.
(3) Not less than 30 days in advance of the publica-
tion of the List, it shall be provided to the Committee on
Banking, Housing, and Urban Affairs of the Senate and
to the Committee on International Relations of the House
of Representatives.
(b) STATUTORY CONSTRUCTION.—Nothing in this
section prevents the inclusion on the List of any goods
or technology that may be produced in and traded inter-
nationally by persons or entities in countries other than
the United States.
SEC. 10. ENFORCEMENT AUTHORITY.
The President may exercise the authorities under the
Export Administration Act of 1979 in order to carry out
this Act.
SEC. 11. REPORT REQUIRED.
Beginning 60 days after the date of the enactment
of this Act, and every 90 days thereafter, the President
shall transmit to the appropriate congressional committees
a report describing—
(1) the nuclear and other military capabilities
of Iran; and
(2) the support, if any, provided by Iran for
acts of international terrorism.
SEC. 12. DEFINITIONS.
As used in this Act:
(1) ACT OF INTERNATIONAL TERRORISM.—The
term ‘‘act of international terrorism’’ means an
act—
(A) which is violent or dangerous to
human life and that is a violation of the crimi-
nal laws of the United States or of any State
or that would be a criminal violation if commit-
ted within the jurisdiction of the United States
or any State; and
(B) which appears to be intended—
(i) to intimidate or coerce a civilian
population;
(ii) to influence the policy of a govern-
ment by intimidation or coercion; or
(iii) to affect the conduct of a govern-
ment by assassination or kidnapping.
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the Com-
mittee on International Relations of the House of
Representatives.
(3) COMPONENT PART.—The term ‘‘component
part’’ has the meaning given that term in section
11A(e)(1) of the Export Administration Act of 1979
(50 U.S.C. App. 2410a(e)(1)).
(4) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ includes—
(A) a depository institution (as defined in
section 3(c)(1) of the Federal Deposit Insur-
ance Act), including a branch or agency of a
foreign bank (as defined in section 1(b)(7) of
the International Banking Act of 1978);
(B) a credit union;
(C) a securities firm, including a broker or
dealer;
(D) an insurance company, including an
agency or underwriter;
(E) any other company that provides fi-
nancial services; and
(F) any subsidiary of an entity described
in any of subparagraphs (A) through (E).
(5) FINISHED PRODUCT.—The term ‘‘finished
product’’ has the meaning given that term in section
11A(e)(2) of the Export Administration Act of 1979
(50 U.S.C. App. 2410a(e)(2)).
(6) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means—
(A) an individual who is not a United
States national or an alien admitted for perma-
nent residence to the United States; or
(B) a corporation, partnership, or other
nongovernment entity which is not a United
States national.
(7) GOODS
AND
TECHNOLOGY.—The terms
‘‘goods’’ and ‘‘technology’’ have the meaning given
those terms in section 16 of the Export Administra-
tion Act of 1979 (50 U.S.C. App. 2415).
(8) IRAN.—The term ‘‘Iran’’ includes any agen-
cy or instrumentality of Iran.
(9) NUCLEAR EXPLOSIVE DEVICE.—The term
‘‘nuclear explosive device’’ means any device, wheth-
er assembled or disassembled, that is designed to
produce an instantaneous release of an amount of
nuclear energy from special nuclear material that is
greater than the amount of energy that would be re-
leased from the detonation of one pound of trinitro-
toluene (TNT).
(10) PERSON.—(A) The term ‘‘person’’ means
a natural person, as well as a corporation, business
association, partnership, society, trust, any other
nongovernmental entity, organization, or group, and
any governmental entity operating as a business en-
terprise, and any successor of any such entity.
(B) In the case of a country where it may be
impossible to identify a specific governmental entity
referred to in subparagraph (A), the term ‘‘person’’
means all activities of the government of the country
relating to the production, sale, or transfer of goods
or technology on the List.
(11) PETROLEUM PRODUCTS.—The term ‘‘pe-
troleum products’’ means crude oil, residual fuel oil,
and any refined petroleum product.
(12) REQUISITE KNOWLEDGE.—The term ‘‘req-
uisite knowledge’’ means situations in which a per-
son ‘‘knows’’, as ‘‘knowing’’ is defined in section 104
of the Foreign Corrupt Practices Act of 1977 (15
U.S.C. 78dd–2).
(13) UNITED
STATES
OR
STATE.—The term
‘‘United States’’ or ‘‘State’’ means the several
States, the District of Columbia, the Commonwealth
of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, American Samoa, Guam, the Unit-
ed States Virgin Islands, and any other territory or
possession of the United States.
(14) UNITED
STATES
NATIONAL.—The term
‘‘United States national’’ means—
(A) a natural person who is a citizen of the
United States or who owes permanent alle-
giance to the United States;
(B) a corporation or other legal entity
which is organized under the laws of the United
States, any State or territory thereof, or the
District of Columbia, if natural persons who are
nationals of the United States own, directly or
indirectly, more than 50 percent of the out-
standing capital stock or other beneficial inter-
est in such legal entity; and
(C) any foreign subsidiary of a corporation
or other legal entity described in subparagraph
(B).
Æ
HR 2619 IH——2
HR 2619 IH——3