§2297h–6 — Title 42 The Public Health and Welfare | U.S. Code

Summary

When the Corporation is privatized, it must send the new private company all contracts, agreements, and leases it got from the Secretary under section 2297c(b) and all contracts it signed before the privatization date. That includes uranium enrichment contracts. It also gives the private company the right to buy power under power contracts the Secretary signed before July 1, 1993. The Secretary will keep receiving that power and will sell it to the private company at cost while those contracts run. The United States still remains responsible to other parties for meeting obligations under those transferred contracts during their terms. If the private company performs those duties, that counts as the United States performing them. If a transferred contract is later ended, extended, or materially changed, the United States is responsible for obligations that arose before that change and the private company is responsible for obligations that arise after it. The private company must repay the United States for any settlement or judgment the United States pays that is caused by the private company’s actions between the privatization date and the contract change. The Corporation may set prices so it can pursue normal business profits.

Title 42, §2297h–6

The Public Health and Welfare — Source: USLM XML via OLRC

(a)Concurrent with privatization, the Corporation shall transfer to the private corporation all contracts, agreements, and leases, including all uranium enrichment contracts, that were—

(1)transferred by the Secretary to the Corporation pursuant to section 2297c(b) of this title, or

(2)entered into by the Corporation before the privatization date.

(b)The Corporation shall transfer to the private corporation the right to purchase power from the Secretary under the power purchase contracts for the gaseous diffusion plants executed by the Secretary before July 1, 1993. The Secretary shall continue to receive power for the gaseous diffusion plants under such contracts and shall continue to resell such power to the private corporation at cost during the term of such contracts.

(c)(1)Notwithstanding subsection (a), the United States shall remain obligated to the parties to the contracts, agreements, and leases transferred under subsection (a) for the performance of its obligations under such contracts, agreements, or leases during their terms. Performance of such obligations by the private corporation shall be considered performance by the United States.

(2)If a contract, agreement, or lease transferred under subsection (a) is terminated, extended, or materially amended after the privatization date—

(A)the private corporation shall be responsible for any obligation arising under such contract, agreement, or lease after any extension or material amendment, and

(B)the United States shall be responsible for any obligation arising under the contract, agreement, or lease before the termination, extension, or material amendment.

(3)The private corporation shall reimburse the United States for any amount paid by the United States under a settlement agreement entered into with the consent of the private corporation or under a judgment, if the settlement or judgment—

(A)arises out of an obligation under a contract, agreement, or lease transferred under subsection (a), and

(B)arises out of actions of the private corporation between the privatization date and the date of a termination, extension, or material amendment of such contract, agreement, or lease.

(d)The Corporation may establish prices for its products, materials, and services provided to customers on a basis that will allow it to attain the normal business objectives of a profit making corporation.

Editorial Notes

Codification Section was enacted as part of the USEC Privatization Act and also as part of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, and not as part of the Atomic Energy Act of 1954 which comprises this chapter.

§2297h–6 Transfer of contracts

Summary

Title 42, §2297h–6

Notes & Related Subsidiaries

Editorial Notes

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