Establishment of the Enrichment Oversight Committee

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.

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;

    (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.