EO 13085
Effective Date: May 26, 1998

Responsible Office: Office of Policy and Plans
Subject: 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 

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 semi-annually, 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 

        (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 

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.

                                             William J. Clinton
May 26, 1998.

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