[Federal Register Volume 63, Number 102 (Thursday, May 28, 1998)]
[Presidential Documents]
[Pages 29335-29337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14407]



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Part III





The President





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Executive Order 13085--Establishment of the Enrichment Oversight 
Committee
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  Federal Register / Vol. 63, No. 102 / Thursday, May 28, 1998 / 
Presidential Documents  

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 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.)

                THE WHITE HOUSE,

                    May 26, 1998.

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