[Federal Register Volume 62, Number 142 (Thursday, July 24, 1997)]
[Notices]
[Pages 39807-39808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19515]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Tex-Co International, Inc.; 
Order Denying Permission to Apply for or Use Export Licenses

    On June 24, 1996, Tex-Co International, Inc. (Tex-Co) was convicted 
in the United States District Court for the Southern District of Texas, 
Houston Division, of violating the International Emergency Economic 
Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1997)) (IEEPA). 
Tex-Co was convicted of knowingly and willfully exporting, and causing 
to be exported, various items of oil field equipment to an intermediary 
for ultimate delivery to Umm Al-Jawaby Oil Service Company, Ltd., a 
specially designated national of the government of Libya, located in 
London, United Kingdom, without the written authorization of the United 
States Government.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 1997)) (the Act), \1\ 
provides that, at the discretion of the Secretary of Commerce, \2\ no 
person convicted of violating IEEPA, or certain other provisions of the 
United States Code, shall be eligible to apply for or use any license, 
including any License Exception, issued pursuant to, or provided by, 
the Act or the Export Administration Regulations (currently codified at 
15 C.F.R. Parts 730-774 (1997)) (the Regulations), for a period of up 
to 10 years from the date of the conviction. In addition, any license 
issued pursuant to the Act in which such a person had any interest at 
the time of conviction may be revoked.
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    \1\ The Act expired on August 20, 1994. Executive Order 12924 (3 
C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notices of 
August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)) and August 14, 
1996 (3 C.F.R., 1996 comp. 298 (1997)), continued the Export 
Administration Regulations in effect under the IEEPA.
    \2\ Pursuant to appropriate delegations of authority, the 
Director, Office of Exporter Services, in consultation with the 
Director, Office of Export Enforcement, exercises the authority 
granted to the Secretary by Section 11(h) of the Act.
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    Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon 
notification that a person has been convicted of violating IEEPA, the 
Director, Office of Exporter Services, in consultation with the 
Director, Office of Export Enforcement, shall determine whether to deny 
that person permission to apply for or use any license, including any 
License Exception, issued pursuant to, or provided by, the Act and the 
Regulations, and shall also determine whether to revoke any license 
previously issued to such a person.
    Having received notice of Tex-Co's conviction for violating IEEPA 
and following consultations with the Acting Director, Office of Export 
Enforcement, I have decided to deny Tex-Co permission to apply for or 
use any license, including any License Exception, issued pursuant to, 
or provided by, the Act and the Regulations, for a period of 10 years 
from the date of its conviction. The 10-year period ends on June 24, 
2006. I have also decided to revoke all licenses issued pursuant to the 
Act in which Tex-Co had an interest at the time of its conviction.
    Accordingly, it is hereby Ordered
    I. Until June 24, 2006, Tex-Co International, Inc., 8989 Westheimer 
Road, Suite 216, Houston, Texas 77063, may not, directly or indirectly, 
participate in any way, in any transaction involving any commodity, 
software or technology (hereinafter collectively referred to as 
``item'') exported or to be exported from the United States, that is 
subject to the Regulations, or in any other activity subject to the 
Regulations, including but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document;
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the Regulations, or in any other 
activity subject to the Regulations; or
    C. Benefiting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to 
the Regulations, or in any other activity subject to the Regulations.
    II. No person may directly or indirectly, do any of the following:

[[Page 39808]]

    A. Export or reexport to or on behalf of the denied person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the denied person of the ownership, possession, or 
control of any item subject to the Regulations that has been or will be 
exported from the United States, including financing or other support 
activities related to a transaction whereby the denied person acquires 
or attempts to acquire such ownership, possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from the denied person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from the denied person in the United States any item 
subject to the Regulations with knowledge or reason to know that the 
item will be, or is intended to be, exported from the United States; or
    E. Engage in any transaction to service any item subject to the 
Regulations that has been or will be exported from the United States 
and that is owned, possessed or controlled by the denied person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by the denied person if such service involves the use of any 
item subject to the Regulations that has been or will be exported from 
the United States. For purposes of this paragraph, servicing means 
installation, maintenance, repair, modification or testing.
    III. After notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to Tex-Co by affiliation, ownership, 
control, or position of responsibility in the conduct of trade or 
related services may also be subject to the provisions of this Order.
    IV. This Order does not prohibit any export, reexport, or other 
transaction subject to the Regulations where the only items involved 
that are subject to the Regulations are the foreign-producted direct 
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until June 24, 2006.
    VI. A copy of this Order shall be delivered to Tex-Co. This Order 
shall be published in the Federal Register.

    Dated: July 15, 1997.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 97-19515 Filed 7-23-97; 8:45 am]
BILLING CODE 3510-DT-M